4. Estée Lauder
New York, NY
www.esteelauder.com
Beauty Sales: $7.9 billion for the year ended June 30, 2008

Key Personnel: Leonard A. Lauder, chairman; Ronald S. Lauder, chairman, Clinique Laboratories; William P. Lauder, chief executive officer; Fabrizio Freda, president, chief operating officer; Daniel J. Brestle, vice chairman and president, ELC North America; Malcolm Bond, executive vice president, global operations; John Demsey, group president.
Products/Brands: Skin care, makeup, fragrance and hair care products marketed under such brand names as Estée Lauder, Aramis, Clinique, Prescriptives, Origins, MAC, Bobbi Brown, Tommy Hilfiger, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, Darphin, Michael Kors, Sean John, Missoni, Coach, Ojon.

New Products:  Literally hundreds of launches, including: Estée Lauder—Private Collection Tuberose Gardenia Fragrance Collection, Sensuous Fragrance Collection. Clinique—Even Better Skin Tone Corrector. Prescriptives—Instant Gratification Skin Renewal Peel. Origins—Origins Organics Collection. M.A.C.— Fafi for MAC. Donna Karan/DKNY—Donna Karan Gold. Aveda—Aveda Men. Jo Malone—Kohdo Wood Collection. Sean John Fragrances—Unforgivable Woman Scent Spray.

Comments: Activity was on overtime at Estée Lauder where brands reached into expanding markets and corporate reorganization kept pace—and generated rumors. In large part due to strong growth in international sales and earnings, the Estée Lauder Companies Inc. reported $7.9 billion in net sales for its fiscal year ended June 30, 2008, a 12% increase over the $7 billion reported in the previous year. Fourth quarter sales of $2 billion marked a strong 14% increase from $1.76 billion in the comparable quarter of fiscal 2007. Makeup accounted for the highest percentage of net sales at $3 billion, while skin care products showed the greatest leap percentage-wise, rising more than 15% above the previous year’s figures. Fragrance rose nearly 5% over the previous year to $1.43 billion and hair care came in at $427 million. Sales increased in all product categories within each of the company’s geographic regions.
 
Skin care sales growth was strongest in the Asia/Pacific region, due to new whitening products and higher sales in Greater China. In addition to sales growth from certain existing products, the skin care category benefited from strong worldwide sales of recent products, such as Idealist Pore Minimizing Skin Refinisher and Cyber White EX by Estée Lauder and Redness Solutions from Clinique. Clinique has collaborated with Allergan to offer clinically proven skin care products to complement in-office aesthetic procedures. Double-digit gains from the La Mer brand were realized, due in part to the recent launch of The Eye Concentrate.
  
The makeup category posted solid double-digit sales growth internationally and a single-digit increase in the Americas. Double-digit growth in the company’s makeup artist brands contributed more than 65% of the incremental sales. Also contributing to the growth were incremental sales from the recent launches of Estée Lauder Signature Hydra Lustre Lipstick and Supermoisture Makeup from Clinique.
  
Fragrance sales growth was strongest in Europe, primarily driven by newer fragrance offerings, followed by gains in Asia/Pacific and the Americas. Fragrance sales, while being compared favorably to the previous year’s figures, continue to be affected by the soft retail environment in the U.S. Contributors to the sales growth include Sean John Unforgivable Woman, Dreaming Tommy Hilfiger and DKNY Be Delicious. Private Collection Tuberose Gardenia, developed by Aerin Lauder, granddaughter of the founder, captured HBA’s IPDA for Prestige Fragrance. Sensuous was the company’s biggest launch of the year.
  
Sales of hair care products increased, due to the inclusion of the Ojon brand, which was acquired in July 2007, and higher sales from Aveda and Bumble and bumble. Aveda celebrated its 30th anniversary with the re-release of its Vintage Clove Shampoo, capped with a recycled closure made from Estée Lauder’s highly touted bottle caps recycling program.
  
Fabrizio Freda, who had served as president of global snacks at Procter & Gamble, was named president and chief operating officer, positioned to take over the top job of chief executive within the next two years from William P. Lauder, grandson of the company founder. His appointment fueled speculation over a potential takeover by P&G.