During an analyst and investor meeting in September, The Estée Lauder Com-panies said it expects a combination of sales growth initiatives, operational efficiencies and productivity gains to drive sales over the next five years at a cumulative average growth rate of 6-7% in constant currency. Earnings per share are expected to average 12-15% growth during the period. The company’s supply chain and manufacturing initiatives, designed to integrate and align all elements of its global operations, are expected to reduce costs by $106, to $132 million, during the next five years. Company executives said Lauder expects these efforts to result in an approximately 180 basis point improvement in cost of goods during the five-year period, allowing the company to achieve its goal of 25% cost of goods and a 75% gross margin.
Lauder Outlines Plans For Long-Term Growth
Published November 11, 2005
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