11.02.15
For the fourth quarter, Estée Lauder’s net sales fell for the first time in three quarters, as results were hurt by a stronger dollar and less demand for Clinique and Estée Lauder skin care products. The company’s net sales fell 7.4% to $2.52 billion, while skin care business sales fell 16% to $1.01 billion.
For the year, the company achieved net sales fell 2% to $10.78 billion. However, partially offsetting these decreases were higher sales from La Mer, one of the company’s luxury skin care brands, and from Origins, as well as incremental sales from recent acquisitions.
“Today, our company is more balanced, resilient and agile and has demonstrated its ability to produce consistent and sustainable results,” said Fabrizio Freda, president and chief executive officer. “Together with our powerful brand portfolio and financial discipline, we finished our fiscal year with a strong fourth quarter, generating 7% constant currency sales growth, after adjusting for the accelerated sales orders we reported in fiscal 2014.”
According to Freda, one of Lauder’s strengths is its ability to successfully execute a well-defined strategy.
“This was clearly evident in fiscal 2015 as we once again delivered strong results despite considerable macroeconomic headwinds and challenges,” he maintained.
Freda noted that Lauder’s sales grew at a faster rate than global prestige beauty, and credited the gains to the success of its multiple engines of growth—including double-digit sales gains in most of makeup and luxury brands and the online, specialty-multi and freestanding store channels. By geography, emerging markets, the UK and accelerated growth in certain developed markets were also key performance drivers.
“We strengthened and diversified our portfolio with the acquisition of four uniquely positioned brands in fast-growing areas of prestige beauty,” he insisted and said the company’s continued financial discipline provided additional resources to pursue high-growth opportunities and deliver strong bottom line growth. “I am proud of our accomplishments. Importantly, we are well-positioned for continuing growth through our unique creativity and consumer appeal for our brands and innovative products,” Freda concluded.
Looking ahead, in fiscal 2016, Estée Lauder executives expect constant currency net sales growth of 6% to 8%.
For the year, the company achieved net sales fell 2% to $10.78 billion. However, partially offsetting these decreases were higher sales from La Mer, one of the company’s luxury skin care brands, and from Origins, as well as incremental sales from recent acquisitions.
“Today, our company is more balanced, resilient and agile and has demonstrated its ability to produce consistent and sustainable results,” said Fabrizio Freda, president and chief executive officer. “Together with our powerful brand portfolio and financial discipline, we finished our fiscal year with a strong fourth quarter, generating 7% constant currency sales growth, after adjusting for the accelerated sales orders we reported in fiscal 2014.”
According to Freda, one of Lauder’s strengths is its ability to successfully execute a well-defined strategy.
“This was clearly evident in fiscal 2015 as we once again delivered strong results despite considerable macroeconomic headwinds and challenges,” he maintained.
Freda noted that Lauder’s sales grew at a faster rate than global prestige beauty, and credited the gains to the success of its multiple engines of growth—including double-digit sales gains in most of makeup and luxury brands and the online, specialty-multi and freestanding store channels. By geography, emerging markets, the UK and accelerated growth in certain developed markets were also key performance drivers.
“We strengthened and diversified our portfolio with the acquisition of four uniquely positioned brands in fast-growing areas of prestige beauty,” he insisted and said the company’s continued financial discipline provided additional resources to pursue high-growth opportunities and deliver strong bottom line growth. “I am proud of our accomplishments. Importantly, we are well-positioned for continuing growth through our unique creativity and consumer appeal for our brands and innovative products,” Freda concluded.
Looking ahead, in fiscal 2016, Estée Lauder executives expect constant currency net sales growth of 6% to 8%.