10.25.01
The Estee Lauder Companies Inc. today reported a 1% gain in net sales to $1.19 billion for the fiscal first quarter ended Sept. 30. Net earnings rose 3% to $97.1 million for the quarter.
"Despite the very difficult economic environment, we grew our company this quarter," said Fred H. Langhammer, president and chief executive officer, Estee Lauder. "As we work through the immediate challenges and look beyond the near-term, we are focusing resources on the greatest opportunities for growth and supporting the internal flow of ideas to garner innovation and efficiencies."
Net sales of makeup products for the quarter rose 4% to $447.5 million. The higher sales reflect the launch of Gentle Light Makeup and Powder and High Impact Eye Shadow Duo from Clinique along with Sumptuous Lipstick by Estee Lauder. Recently launched products such as Moisture Surge Lipstick and Lash-Doubling Mascara by Clinique and Equalizer Smart Makeup from Estee Lauder also contributed to the net sales increase, as did strong double-digit growth from MAC and new and existing products from other brands.
Skin care sales decreased slightly to $393.5 million. During the quarter, the company launched LightSource Transforming Moisture Cream and Lotion by Estee Lauder, Total Turnaround Visible Skin Renewer from Clinique and A Perfect World White Tea Skin Guardian by Origins. Lower sales of certain existing products offset these positive results.
Fragrance sales fell 3% to $291.3 million. The current quarter benefited from the initial shipments of the Company's newest men's fragrance, T by Tommy Hilfiger, and continued success of the recent domestic launch of Intuition by Estee Lauder. These positive contributions were offset by lower sales of DKNY for women, Beautiful by Estee Lauder and Clinique Happy.
Sales of hair care products for the quarter increased 10% to $50 million. The increase was attributed to growth at Aveda and Bumble and bumble, partially offset by the anniversary of the prior-year launch of Clinique's Simple Hair Care System.
Operating income in hair care increased and was up slightly in makeup, driven by sales growth in each of these categories. Fragrance operating income decreased and skin care declined slightly reflecting lower reported sales.
The company expects sales for the second fiscal quarter to grow between 2-3% on a constant currency basis versus last fiscal year's second quarter growth of 10%. The company noted that coupled with the cautious retail outlook, the fiscal 2002 second quarter will be facing a very difficult comparison with the same prior-year quarter when the company reported solid growth in all regions and most product categories. On a product category basis, in constant currency, hair care sales, with a smaller base, are expected to be the leading growth category, followed by makeup and skin care, while fragrance is expected to decline versus the prior-year.
"Despite the very difficult economic environment, we grew our company this quarter," said Fred H. Langhammer, president and chief executive officer, Estee Lauder. "As we work through the immediate challenges and look beyond the near-term, we are focusing resources on the greatest opportunities for growth and supporting the internal flow of ideas to garner innovation and efficiencies."
Net sales of makeup products for the quarter rose 4% to $447.5 million. The higher sales reflect the launch of Gentle Light Makeup and Powder and High Impact Eye Shadow Duo from Clinique along with Sumptuous Lipstick by Estee Lauder. Recently launched products such as Moisture Surge Lipstick and Lash-Doubling Mascara by Clinique and Equalizer Smart Makeup from Estee Lauder also contributed to the net sales increase, as did strong double-digit growth from MAC and new and existing products from other brands.
Skin care sales decreased slightly to $393.5 million. During the quarter, the company launched LightSource Transforming Moisture Cream and Lotion by Estee Lauder, Total Turnaround Visible Skin Renewer from Clinique and A Perfect World White Tea Skin Guardian by Origins. Lower sales of certain existing products offset these positive results.
Fragrance sales fell 3% to $291.3 million. The current quarter benefited from the initial shipments of the Company's newest men's fragrance, T by Tommy Hilfiger, and continued success of the recent domestic launch of Intuition by Estee Lauder. These positive contributions were offset by lower sales of DKNY for women, Beautiful by Estee Lauder and Clinique Happy.
Sales of hair care products for the quarter increased 10% to $50 million. The increase was attributed to growth at Aveda and Bumble and bumble, partially offset by the anniversary of the prior-year launch of Clinique's Simple Hair Care System.
Operating income in hair care increased and was up slightly in makeup, driven by sales growth in each of these categories. Fragrance operating income decreased and skin care declined slightly reflecting lower reported sales.
The company expects sales for the second fiscal quarter to grow between 2-3% on a constant currency basis versus last fiscal year's second quarter growth of 10%. The company noted that coupled with the cautious retail outlook, the fiscal 2002 second quarter will be facing a very difficult comparison with the same prior-year quarter when the company reported solid growth in all regions and most product categories. On a product category basis, in constant currency, hair care sales, with a smaller base, are expected to be the leading growth category, followed by makeup and skin care, while fragrance is expected to decline versus the prior-year.