Estee Lauder exceeded expectations for first-quarter sales and profit, driven by strong demand for fragrances and increased sales in China. The company’s turnaround efforts, including luxury launches and supply chain improvements, have helped revive sliding sales. Quarterly organic net sales rose 3%, with growth in China and Asia Pacific regions.

Despite a $100 million tariff hit warning in August, Estee Lauder has shifted production closer to key markets to navigate changing trade policies. The company’s fragrance category saw a 13% organic sales growth, with a 9% increase in sales in China and Asia Pacific regions. The CEO expects improved performance in the first half of the year.

While Estee Lauder’s sales in the Americas slowed, the company saw a rebound in China, indicating a potential return to growth. Analysts believe the worst of China’s luxury slump may be over, with the company poised for further growth. Estee Lauder’s quarterly sales of $3.48 billion surpassed analyst estimates, with an adjusted profit of 32 cents per share.

Shares of Estee Lauder fell about 2% in morning trading, despite the positive earnings report. The company’s strong performance, especially in the fragrance category and in China, suggests a promising outlook for future growth. L’Oreal and other luxury brands have also seen improvements in China, indicating a broader trend of recovery in the region.

Read more at Yahoo Finance: Estee Lauder beats quarterly estimates on robust growth in fragrance business