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    Top 20 Companies

    3. The Estée Lauder Companies

    Estée Lauder Companies ranks at #3 on our list of Top 20 Global Beauty Companies 2018 -- with $13.7 billion in beauty sales.

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    Jamie Matusow, Editor-in-Chief , with Joanna Cosgrove, Contributing Editor11.02.18

    The Estée Lauder Companies comes in at  #3 on this year's list of Top Global Beauty Companies. 

    Below is a look at the company’s 2018 highlights, recent acquisitions, best-selling brands, and latest innovations.

    Beauty Sales

    $13.7 billion
    (FY 2017: $11.8 billion)

    Key Personnel

    • William P. Lauder, executive chairman
    • Fabrizio Freda, president and chief executive officer
    • John Demsey, executive group president
    • Carl Haney, executive vice president, global research and development, corporate product innovation, package development Leonard A. Lauder, chairman emeritus
    • Ronald S. Lauder, chairman, Clinique Laboratories, LLC;
    • Cedric Prouvé, group president, international
    • Chris Good, president, North America
    • Philippe Pinatel, global brand president, MAC

    Major Products/Brands

    Prestige skincare, makeup, fragrance and hair care products sold in more than 150 countries and territories.

    Brands include:
    • Estée Lauder, Aramis, Clinique,
    • Prescriptives, Lab Series, Origins,
    • Tommy Hilfiger, MAC, Kiton, La Mer,
    • Bobbi Brown, Donna Karan New York, DKNY,
    • Aveda, Jo Malone London, Bumble and bumble,
    • Michael Kors, Darphin, Tom Ford, Smashbox,
    • Ermenegildo Zegna, Aerin, Tory Burch, Rodin olio lusso,
    • Le Labo, Editions de Parfums Frédéric Malle,
    • GlamGlow, By Kilian, Becca and Too Faced

    New Products

    • Estée Lauder New Advanced Night Repair Eye Supercharged Complex
    • Estée Lauder Repair + Renew For Firmer
    • Radiant-Looking Skin
    • Too Faced Better Than Birthday Sex Mascara
    • Tom Ford Satin Matte Lip Color
    • Becca Skin Love Weightless Blur Foundation
    • Clinique Dramatically Different Hydrating Jelly
    • Aerin Rose de Grasse fragrance
    • Tom Ford Fougère d’Argent Parfum
    • Aveda Cherry Almond Shampoo and Conditioner

    Sales Climb, As ELC Is Stronger Than Ever

    The Estée Lauder Companies Inc. (ELC) reported even stronger than expected 2018 financial results for its fourth quarter and fiscal year ended June 30, 2018—achieving net sales of $13.68 billion, a 16% increase compared with $11.82 billion in the prior year. The fourth quarter of fiscal 2018 results  marked the 16th straight quarter of improved earnings.


    Fabrizio Freda, president and chief executive officer, said, “Fiscal 2018 was an outstanding year for our company. We generated higher sales in every region and product category and gained global share. By investing in our hero franchises, fast-growing channels and digital and social media, we delivered double-digit sales and adjusted earnings per share growth. We achieved record net sales in fiscal 2018 and one of our best performances in the last decade.”

    Freda went on to say: “Sales climbed in virtually all our brands and we hit milestones along the way. Among the top four brands, our flagship Estée Lauder brand achieved record global sales and grew 22% in constant currency, demonstrating the amazing equity of the brand.” La Mer became the fourth brand in the company’s portfolio to contribute well over $1 billion in net sales; sales also increased globally at MAC and Clinique.

    Due to corporate efforts laid out in May 2016, via its Leading Beauty Forward initiative to build on its strengths and better leverage its cost structure, the beauty giant targeted its investments to shifts in consumer and market dynamics across product categories, geographic regions, brands and distribution channels. ELC said the strategies taken positioned it well for the resurgence in global prestige skin care growth as well as the strong increase in demand among Chinese consumers.

    Net sales increased in several developed and emerging markets, and reflected strong growth from the travel retail, online and specialty-multi channels. Skin care net sales benefited from increases at Estée Lauder, La Mer, Origins and Clinique. Makeup net sales growth was driven by increases from Estée Lauder, Tom Ford and M.A.C, as well as both incremental and higher comparable net sales from the company’s 2017 acquisitions of Too Faced and Becca. Fragrance net sales growth reflected increases from Jo Malone London, Tom Ford, Le Labo and By Kilian. Hair care net sales increased, reflecting growth from Aveda.
    Makeup sales were up 11% to $5.6 billion for the year, largely due to Estée Lauder, Tom Ford, Becca and La Mer, and Too Faced Cosmetics. Too Faced sales were up 22% for the fourth quarter.

    2018 Highlights

    In February, MAC Cosmetics announced that industry veteran Karen Buglisi Weiler would be stepping down as MAC’s global brand president after 20 years and Philippe Pinatel would follow as her successor.

    In May, ELC’s Fabrizio Freda was named to the first-ever CEO RepTrak study, as one of the world’s most reputable CEOs. The global study shows what drives CEO reputation, the direct correlation between corporate reputation and stakeholder support.

    For the fourth quarter, in August, ELC reported a hefty jump in sales, especially in high-end skincare in travel retail and elsewhere, and announced that La Mer had become a billion-dollar brand.

    Also in August, Estée Lauder introduced its new Advanced Night Repair Eye Supercharged Complex, with “the power to help repair the visible impact of lack of sleep, UV, pollution and even blue light dramatically.”

    Looking Ahead

    According to ELC, global prestige beauty is continuing to perform exceptionally well in fiscal 2019 and is estimated to grow 5% to 6% during the fiscal year. ELC expects to grow ahead of the industry.

    “In fiscal 2019, Freda said, “we will continue to create products that appeal to a more diverse and growing middle class around the world and we are confident that we can continue to achieve industry-leading sales and double-digit earnings per share growth.

    With a successful strategy that focuses on multiple engines of growth across products, geographies, channels and demographics, we expect to once again gain share globally in fiscal 2019.”

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