10.01.10
4. Estée Lauder
New York, NY
www.esteelauder.com
Sales: $7.8 billion
Key Personnel: Leonard A. Lauder, chairman emeritus; William P. Lauder, executive chairman; Ronald S. Lauder, chairman, Clinique Laboratories; Fabrizio Freda, president and chief executive officer; Lynne Greene, global president, Clinique, Origins and Ojon brands. Jane Lauder, global president, general manager of Origins and Ojon.
Major Products: Skin care, makeup, fragrances and hair care brands, including Estée Lauder, MAC, Bobbi Brown, La Mer, Jo Malone, Tom Ford Beauty, Clinique, Origins, Ojon, Aramis, Tommy Hilfiger, Kiton, Donna Karan, Michael Kors, Missoni, Daisy Fuentes, Coach, Aveda, Bumble and Bumble, Darphin, Smashbox.
New Products: Estée Lauder Perfectionist [CP+] Wrinkle Lifting Serum, Superdefense SPF 25 Age Defense Moisturizer and Youth Surge SPF 15; Clinique Superfit Makeup; Estée Lauder Sensuous, Hilfiger Men, DKNY Men, I Am King; Aveda Dry Remedy shampoo and conditioner.
Comments: Skin care brands worked hard to help ease the economic corporate wrinkles at Estée Lauder in 2009, as the firm gained share globally in prestige beauty—an important target for future growth.
It was satisfaction of a goal set forth by president and chief executive officer Fabrizio Freda when he took the reins during an economic low, and focused on future opportunities and building a global customer base. Corporate cost cutting, an initiative to identify certain underperforming stock keeping units and SKU reductions combined with a long-term restructuring plan, resulted not only in the growth of skin care, but in financial results for the fourth quarter and fiscal year ended June 30, 2010 that were sharply higher than the prior-year periods. The company reported savings of $364 million during the year.
For the year, the company achieved net sales of $7.8 billion, a 6% increase compared with $7.32 billion reported in the prior fiscal year. In fiscal 2010, the company generated its largest full-year increase in operating income and operating margin since becoming a public company in 1995. Net earnings for the year were $478.3 million, compared with $218.4 million in the previous year.
Freda may have even surprised himself. He commented, “In fiscal 2010 we surpassed our own financial goals. In this first full year of our long-term plan we made substantial progress advancing our strategic goals and aligned many facets of our company to continue to achieve sustainable, profitable growth.
The company posted sales gains in each of its geographic regions and most major product categories. Strong sales growth came from Estée Lauder’s international business, particularly in travel retail, Asia/Pacific and emerging markets.
Leading brands continued to make progress through refocusing and repositioning, collectively generating sharply improved results, compared with the prior-year periods. At the end of January 2010, the company discontinued the wholesale distribution of its Prescriptives brand products.
By category, skin care, a strategic priority for the company, gained share globally in prestige beauty. Skin care net sales in Asia/Pacific and Europe, the Middle East & Africa grew double digits, while the Americas had a mid single-digit gain. Across each region, the Estée Lauder brand had strong sales from the recent launches of Advanced Night Repair products and Hydrationist Maximum Moisture Crème and Lotion. Also contributing to the increased sales were the successful introductions of Even Better Clinical Dark Spot Corrector, Youth Surge Night Age Decelerating Night Moisturizer and Even Better Skin Tone Correcting Moisturizer SPF 20 from Clinique.
In makeup, net sales posted strong gains in Asia/Pacific and Europe, the Middle East & Africa. Sales in the Americas declined, primarily reflecting lower sales of Prescriptives products. The majority of the sales increase came from the company’s makeup artist brands, driven primarily by their international businesses.
Net sales of fragrance products decreased, largely due to lower sales of certain designer fragrances.
Hair care net sales increased, due to certain styling and hair color products, the recent launches of Smooth Infusion Glossing Straightener and Control Force from Aveda and expanded international distribution at Aveda.
By region, net sales in the Americas region increased, primarily due to higher sales in Canada and Latin America. Clinique posted strong net sales growth of skin care products, while makeup artist brands and various designer fragrances also generated sales gains. Sales decreased modestly in the U.S.
In Europe, the Middle East & Africa, sales increased in all major product categories, except fragrance. Travel retail business was up thanks to an improvement in global airline passenger traffic. Double-digit sales growth was recorded in a number of countries, with the largest gains coming in emerging markets, such as Russia, Turkey and Israel.
The Asia/Pacific region generated solid local currency sales growth, with all countries posting increases, except Japan. Sales in this region had strong growth in each major product category with double-digit gains in skin care and hair care.
In July 2010, Estée Lauder made a move to enter retailers such as Sephora by purchasing the Smashbox brand.
For 2010, net sales are forecasted to grow between 6% and 8% in constant currency. Hair care and skin care are expected to be the leading sales growth categories, followed by makeup and fragrance. Activity is expected to be led by Asia/Pacific, followed by Europe, the Middle East & Africa and the Americas.
In connection with its long-term strategic plan, as well as certain ongoing initiatives, the company expects to realize savings of between $130 million and $140 million during fiscal 2011.
New York, NY
www.esteelauder.com
Sales: $7.8 billion
Key Personnel: Leonard A. Lauder, chairman emeritus; William P. Lauder, executive chairman; Ronald S. Lauder, chairman, Clinique Laboratories; Fabrizio Freda, president and chief executive officer; Lynne Greene, global president, Clinique, Origins and Ojon brands. Jane Lauder, global president, general manager of Origins and Ojon.
Major Products: Skin care, makeup, fragrances and hair care brands, including Estée Lauder, MAC, Bobbi Brown, La Mer, Jo Malone, Tom Ford Beauty, Clinique, Origins, Ojon, Aramis, Tommy Hilfiger, Kiton, Donna Karan, Michael Kors, Missoni, Daisy Fuentes, Coach, Aveda, Bumble and Bumble, Darphin, Smashbox.
New Products: Estée Lauder Perfectionist [CP+] Wrinkle Lifting Serum, Superdefense SPF 25 Age Defense Moisturizer and Youth Surge SPF 15; Clinique Superfit Makeup; Estée Lauder Sensuous, Hilfiger Men, DKNY Men, I Am King; Aveda Dry Remedy shampoo and conditioner.
Comments: Skin care brands worked hard to help ease the economic corporate wrinkles at Estée Lauder in 2009, as the firm gained share globally in prestige beauty—an important target for future growth.
It was satisfaction of a goal set forth by president and chief executive officer Fabrizio Freda when he took the reins during an economic low, and focused on future opportunities and building a global customer base. Corporate cost cutting, an initiative to identify certain underperforming stock keeping units and SKU reductions combined with a long-term restructuring plan, resulted not only in the growth of skin care, but in financial results for the fourth quarter and fiscal year ended June 30, 2010 that were sharply higher than the prior-year periods. The company reported savings of $364 million during the year.
For the year, the company achieved net sales of $7.8 billion, a 6% increase compared with $7.32 billion reported in the prior fiscal year. In fiscal 2010, the company generated its largest full-year increase in operating income and operating margin since becoming a public company in 1995. Net earnings for the year were $478.3 million, compared with $218.4 million in the previous year.
Freda may have even surprised himself. He commented, “In fiscal 2010 we surpassed our own financial goals. In this first full year of our long-term plan we made substantial progress advancing our strategic goals and aligned many facets of our company to continue to achieve sustainable, profitable growth.
The company posted sales gains in each of its geographic regions and most major product categories. Strong sales growth came from Estée Lauder’s international business, particularly in travel retail, Asia/Pacific and emerging markets.
Leading brands continued to make progress through refocusing and repositioning, collectively generating sharply improved results, compared with the prior-year periods. At the end of January 2010, the company discontinued the wholesale distribution of its Prescriptives brand products.
By category, skin care, a strategic priority for the company, gained share globally in prestige beauty. Skin care net sales in Asia/Pacific and Europe, the Middle East & Africa grew double digits, while the Americas had a mid single-digit gain. Across each region, the Estée Lauder brand had strong sales from the recent launches of Advanced Night Repair products and Hydrationist Maximum Moisture Crème and Lotion. Also contributing to the increased sales were the successful introductions of Even Better Clinical Dark Spot Corrector, Youth Surge Night Age Decelerating Night Moisturizer and Even Better Skin Tone Correcting Moisturizer SPF 20 from Clinique.
In makeup, net sales posted strong gains in Asia/Pacific and Europe, the Middle East & Africa. Sales in the Americas declined, primarily reflecting lower sales of Prescriptives products. The majority of the sales increase came from the company’s makeup artist brands, driven primarily by their international businesses.
Net sales of fragrance products decreased, largely due to lower sales of certain designer fragrances.
Hair care net sales increased, due to certain styling and hair color products, the recent launches of Smooth Infusion Glossing Straightener and Control Force from Aveda and expanded international distribution at Aveda.
By region, net sales in the Americas region increased, primarily due to higher sales in Canada and Latin America. Clinique posted strong net sales growth of skin care products, while makeup artist brands and various designer fragrances also generated sales gains. Sales decreased modestly in the U.S.
In Europe, the Middle East & Africa, sales increased in all major product categories, except fragrance. Travel retail business was up thanks to an improvement in global airline passenger traffic. Double-digit sales growth was recorded in a number of countries, with the largest gains coming in emerging markets, such as Russia, Turkey and Israel.
The Asia/Pacific region generated solid local currency sales growth, with all countries posting increases, except Japan. Sales in this region had strong growth in each major product category with double-digit gains in skin care and hair care.
In July 2010, Estée Lauder made a move to enter retailers such as Sephora by purchasing the Smashbox brand.
For 2010, net sales are forecasted to grow between 6% and 8% in constant currency. Hair care and skin care are expected to be the leading sales growth categories, followed by makeup and fragrance. Activity is expected to be led by Asia/Pacific, followed by Europe, the Middle East & Africa and the Americas.
In connection with its long-term strategic plan, as well as certain ongoing initiatives, the company expects to realize savings of between $130 million and $140 million during fiscal 2011.