08.12.10
The Estée Lauder Companies Inc. reported the latest financial results for the fourth quarter and fiscal year ended June 30, 2010. For the year, net sales increased 6% to $7.80 billion. In fiscal 2010, the company generated its largest full-year increase in operating income and operating margin since becoming a public company in 1995.
Fabrizio Freda, president and chief executive officer, said, “In fiscal 2010, we surpassed our own financial goals. In this first full year of our long-term plan we made substantial progress advancing our strategic goals and aligned many facets of our company to continue to achieve sustainable, profitable growth.
"Throughout the year, as we implemented our plan, we were able to raise our financial targets for fiscal 2010. We successfully launched initiatives on our biggest brands, took advantage of improving retail environments, saw international passenger traffic pick up, which helped the strong growth in our travel retail business, and realized greater-than-expected cost savings. We generated an impressive performance in our international business and produced strong sales growth in skin care, both of which are key areas of our strategic focus.”
“Looking at fiscal 2011, we intend to build upon the solid foundation that we established this past year to achieve our strategic and financial goals,” he added.
The company posted sales gains in each of its geographic regions and most major product categories. Strong sales growth came from its international businesses, particularly in travel retail, Asia/Pacific and emerging markets. Modest sales gains were reported in the Americas.
In skin care, net sales in Asia/Pacific and Europe, the Middle East & Africa grew double digits, while the Americas had a mid single-digit gain. Across each region, the Estée Lauder brand had strong sales from the recent launches of Advanced Night Repair Synchronized Recovery Complex, Advanced Night Repair Eye Synchronized Complex and Hydrationist Maximum Moisture Crème and Lotion. Contributing to the increased sales were the successful introductions of Even Better Clinical Dark Spot Corrector, Youth Surge Night Age Decelerating Night Moisturizer and Even Better Skin Tone Correcting Moisturizer SPF 20 from Clinique. The Regenerating Serum, a new product from La Mer, as well as other successful products from La Mer, also contributed incremental sales.
Makeup net sales posted strong gains in Asia/Pacific and Europe, the Middle East & Africa. Sales in the Americas declined, primarily reflecting lower sales of Prescriptives products due to the brand’s exit from global wholesale distribution. The majority of the sales increase came from the company’s makeup artist brands. The higher makeup sales also reflected increases across a broad range of products, such as the recent launches of Even Better Makeup SPF 15 and Superbalanced Powder Makeup SPF 15 from Clinique and Resilience Lift Extreme Radiant Lifting Makeup SPF 15 from Estée Lauder, as well as higher sales of Double Wear Foundation from Estée Lauder.
Net sales of fragrance products decreased, largely due to lower sales of certain designer fragrances, including DKNY Delicious Night, Hilfiger Men, Sean John Unforgivable Woman, Sean John Unforgivable and DKNY Men. Also contributing to the decrease were lower sales of Estée Lauder Sensuous and Clinique Happy. Partially offsetting these declines were the recent successful launches of pure DKNY in Europe, Very Hollywood Michael Kors in the United States and DKNY Delicious Candy Apples, as well as higher sales of DKNY Be Delicious Fresh Blossom.
Hair care net sales increased, due to certain styling and hair color products, the recent launches of Smooth Infusion Glossing Straightener and Control Force from Aveda and expanded international distribution at Aveda.
For the three months ended June 30, 2010, the company reported a 9% increase in net sales to $1.84 billion. Net sales grew in the skin care, makeup and hair care categories, which more than offset a modest decline in fragrance.
For 2011, net sales are forecasted to grow between 6-8%, according to the company.
Fabrizio Freda, president and chief executive officer, said, “In fiscal 2010, we surpassed our own financial goals. In this first full year of our long-term plan we made substantial progress advancing our strategic goals and aligned many facets of our company to continue to achieve sustainable, profitable growth.
"Throughout the year, as we implemented our plan, we were able to raise our financial targets for fiscal 2010. We successfully launched initiatives on our biggest brands, took advantage of improving retail environments, saw international passenger traffic pick up, which helped the strong growth in our travel retail business, and realized greater-than-expected cost savings. We generated an impressive performance in our international business and produced strong sales growth in skin care, both of which are key areas of our strategic focus.”
“Looking at fiscal 2011, we intend to build upon the solid foundation that we established this past year to achieve our strategic and financial goals,” he added.
The company posted sales gains in each of its geographic regions and most major product categories. Strong sales growth came from its international businesses, particularly in travel retail, Asia/Pacific and emerging markets. Modest sales gains were reported in the Americas.
In skin care, net sales in Asia/Pacific and Europe, the Middle East & Africa grew double digits, while the Americas had a mid single-digit gain. Across each region, the Estée Lauder brand had strong sales from the recent launches of Advanced Night Repair Synchronized Recovery Complex, Advanced Night Repair Eye Synchronized Complex and Hydrationist Maximum Moisture Crème and Lotion. Contributing to the increased sales were the successful introductions of Even Better Clinical Dark Spot Corrector, Youth Surge Night Age Decelerating Night Moisturizer and Even Better Skin Tone Correcting Moisturizer SPF 20 from Clinique. The Regenerating Serum, a new product from La Mer, as well as other successful products from La Mer, also contributed incremental sales.
Makeup net sales posted strong gains in Asia/Pacific and Europe, the Middle East & Africa. Sales in the Americas declined, primarily reflecting lower sales of Prescriptives products due to the brand’s exit from global wholesale distribution. The majority of the sales increase came from the company’s makeup artist brands. The higher makeup sales also reflected increases across a broad range of products, such as the recent launches of Even Better Makeup SPF 15 and Superbalanced Powder Makeup SPF 15 from Clinique and Resilience Lift Extreme Radiant Lifting Makeup SPF 15 from Estée Lauder, as well as higher sales of Double Wear Foundation from Estée Lauder.
Net sales of fragrance products decreased, largely due to lower sales of certain designer fragrances, including DKNY Delicious Night, Hilfiger Men, Sean John Unforgivable Woman, Sean John Unforgivable and DKNY Men. Also contributing to the decrease were lower sales of Estée Lauder Sensuous and Clinique Happy. Partially offsetting these declines were the recent successful launches of pure DKNY in Europe, Very Hollywood Michael Kors in the United States and DKNY Delicious Candy Apples, as well as higher sales of DKNY Be Delicious Fresh Blossom.
Hair care net sales increased, due to certain styling and hair color products, the recent launches of Smooth Infusion Glossing Straightener and Control Force from Aveda and expanded international distribution at Aveda.
For the three months ended June 30, 2010, the company reported a 9% increase in net sales to $1.84 billion. Net sales grew in the skin care, makeup and hair care categories, which more than offset a modest decline in fragrance.
For 2011, net sales are forecasted to grow between 6-8%, according to the company.