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    Breaking News

    Skincare, Travel Lead Estée Lauder Companies’ Full Year Growth

    Market growth in Asia/Pacific is a chief contributor.

    Skincare, Travel Lead Estée Lauder Companies’ Full Year Growth
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    08.19.19
    The Estée Lauder Companies’ (ELC) has reported full year net of $14.86bn increased 9% from $13.68 billion in the prior year, with net sales growth in its international business and nearly all product categories. Net earnings rose to $1.79bn from $1.11bn in 2018.
     
    Net sales were strongest in the Europe, Middle East, Africa region, reaching $6.5 billion; followed by The Americas, with $4.7 billion; and Asia/Pacific with $3.7 billion.
     
    Fabrizio Freda, president and chief executive officer, said, “Fiscal 2019 was an outstanding year for our company. We achieved strong net sales gains across our business, fueled by investments in our strategic priorities, including improved data analytics that helped power our innovation and digital marketing.”
     
    Freda said strong growth occurred in the Asia/Pacific region; skincare, in every region; the travel retail and online channels globally; and “compelling innovations and high-quality products, which drove strong repeat purchases.”
     
    Globally, both large, mid-sized and small brands experienced good results.
     
    By product category, skincare led with $6.6 billion, followed by makeup with 5.9 billion.
    Skincare net sales grew across most regions, led by Estée Lauder and La Mer. The Estée Lauder brand delivered double-digit net sales growth in all regions and nearly all channels of distribution. The bulk of the increase was seen in key franchises, including Advanced Night Repair, Perfectionist, Nutritious, Micro Essence and Revitalizing Supreme. Double-digit growth from La Mer also contributed to growth.
     
    In Makeup, sales growth was attributed to higher Estée Lauder, MAC, Tom Ford Beauty and La Mer. Too Faced was also a contributor. These increases were partially offset by lower net sales from Clinique and Smashbox. MAC, Tom Ford Beauty and La Mer all saw double-digit growth.
     
    Luxury fragrance got a boost from Jo Malone London and the brand’s expanded targeted consumer reach in Asia/Pacific.
     
    Aveda accounted for higher hair care net sales, especially with online sales of lines including Cherry Almond Softening Shampoo and Conditioner as well as hero products such as the Rosemary Mint and Shampure product lines.
     
    Freda added, “Importantly, this year’s results cap a remarkable decade of strategic and operating achievements. Since launching our current strategy in 2009, we have diversified and strengthened our Company, creating a solid foundation to continue our growth.
    “We ended the year with a strong fourth quarter, driven largely by the same growth engines we had throughout the year. Additionally, we saw modest improvement in our U.S. business despite a tough retail environment.
     
    “Prestige beauty continues to be one of the most desirable consumer sectors. As the best diversified pure play in the industry, we are uniquely positioned to capture global share. In fiscal 2020, we plan to continue to invest in the most compelling opportunities, including those in emerging markets beyond China. We expect another year of strong net sales growth, margin improvement and a double-digit increase in earnings per share.”
     
     
     
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    CURRENT ISSUE

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    • Packaging Decorated to Make a Lasting Impression
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