Charles Sternberg, Assistant Editor02.05.21
The Estée Lauder Companies Inc. reported net sales of $4.85 billion for its second quarter ended December 31, 2020, an increase of 5% on a reported basis, and 3% in constant currency, from $4.62 billion in the prior-year period.
“We are proud to have returned to growth in our second quarter, earlier than we anticipated, demonstrating the enduring success of our multiple engines of growth strategy. The powerful engines of Skin Care, Fragrance, Asia/Pacific, Travel Retail in Asia, and global Online fueled our performance despite the increasing complexity of the pandemic,” said Fabrizio Freda, president and chief executive officer.
Segments:
For the six months ended December 31, 2020, the Company reported net sales of $8.42 billion, a 1% decrease compared with $8.52 billion in the prior-year period. Net sales decreased 3% in constant currency.
Freda emphasized, “Our performance this quarter gives us confidence, as we delivered strong sales and earnings growth amid the pandemic while living our company values and investing in technology for new capabilities to support accelerating growth drivers. We still expect to deliver sequentially improving sales growth each quarter for the remainder of fiscal 2021 as we continue driving recovery.”
For the fiscal year, The Estée Lauder Companies expects to maintain momentum and continue to deliver sequentially improving sales growth. The company plans to return to its long-term growth targets of 6% to 8% sales growth, 50 basis points of operating margin expansion and double-digit adjusted diluted earnings per share growth in constant currency after the recovery period from the pandemic.
“We are proud to have returned to growth in our second quarter, earlier than we anticipated, demonstrating the enduring success of our multiple engines of growth strategy. The powerful engines of Skin Care, Fragrance, Asia/Pacific, Travel Retail in Asia, and global Online fueled our performance despite the increasing complexity of the pandemic,” said Fabrizio Freda, president and chief executive officer.
Segments:
- Skin care net sales grew strongly, led by Estée Lauder, La Mer and Clinique.
- Net sales in makeup declined at all brands. The effects of Covid-19 continued to disproportionately impact makeup usage in most markets, particularly foundation and lip.
- Fragrance net sales grew, primarily due to increases from Tom Ford Beauty, Jo Malone London, Clinique and Le Labo. Kilian Paris and Editions de Parfums Frédéric Malle also contributed to growth.
- Hair care net sales declined, primarily reflecting a decrease at Bumble and bumble driven by some temporary retail and salon closures due to Covid-19.
For the six months ended December 31, 2020, the Company reported net sales of $8.42 billion, a 1% decrease compared with $8.52 billion in the prior-year period. Net sales decreased 3% in constant currency.
Freda emphasized, “Our performance this quarter gives us confidence, as we delivered strong sales and earnings growth amid the pandemic while living our company values and investing in technology for new capabilities to support accelerating growth drivers. We still expect to deliver sequentially improving sales growth each quarter for the remainder of fiscal 2021 as we continue driving recovery.”
For the fiscal year, The Estée Lauder Companies expects to maintain momentum and continue to deliver sequentially improving sales growth. The company plans to return to its long-term growth targets of 6% to 8% sales growth, 50 basis points of operating margin expansion and double-digit adjusted diluted earnings per share growth in constant currency after the recovery period from the pandemic.
