12.02.15
The Estée Lauder Companies Inc. reported strong financial results for its fiscal 2016 first quarter, which ended Sept. 30, 2015. Net sales rose 8% to $2.83 billion. Net earnings increased 36% to $309.3 million.
Skin care net sales rose 2% to $1.1 billion, while makeup sales climbed 14% to $1.2 billion. Fragrance rose 9% to $412.9 million and hair care increased 5% to $134.3 million.
Skin care net sales increased due to the favorable comparison related to accelerated orders. Contributing to the category’s sales were higher sales from La Mer and from Origins, as well as incremental sales from recent acquisitions, according to the company.
Partially offsetting these increases were the unfavorable impact of foreign currency translation and lower sales from Estée Lauder reflecting softness in China and Hong Kong, due to difficult retail environments, as well as from Clinique. Sales declines from these two brands were partially offset by recent launches, such as New Dimension products from Estée Lauder and Clinique Smart moisturizers.
Higher makeup sales were primarily driven by growth from the company’s makeup artist brands and strong double-digit growth from Smashbox and Tom Ford. The increases resulted from new product offerings, as well as expanded distribution in a number of channels.
The Estée Lauder and Clinique brands also posted higher makeup sales. Estée Lauder sales got a boost from new launches such as Pure Color Envy liquid lip potion and Double Wear Makeup to Go liquid compact.
While new product offerings from Clinique, such as Beyond Perfecting foundation and concealer, contributed sales gains, the higher sales from Clinique were driven by accelerated orders.
In fragrance, the sales increase primarily reflected strong double-digit gains from luxury brands Jo Malone London and Tom Ford, higher sales from the Aramis and Designer Fragrances division, and incremental sales from recent acquisitions.
The hair care category’s growth benefited from expanded global distribution, primarily in salons, freestanding stores and travel retail for Aveda and from specialty-multi brand retailers for Bumble and bumble.
Skin care net sales rose 2% to $1.1 billion, while makeup sales climbed 14% to $1.2 billion. Fragrance rose 9% to $412.9 million and hair care increased 5% to $134.3 million.
Skin care net sales increased due to the favorable comparison related to accelerated orders. Contributing to the category’s sales were higher sales from La Mer and from Origins, as well as incremental sales from recent acquisitions, according to the company.
Partially offsetting these increases were the unfavorable impact of foreign currency translation and lower sales from Estée Lauder reflecting softness in China and Hong Kong, due to difficult retail environments, as well as from Clinique. Sales declines from these two brands were partially offset by recent launches, such as New Dimension products from Estée Lauder and Clinique Smart moisturizers.
Higher makeup sales were primarily driven by growth from the company’s makeup artist brands and strong double-digit growth from Smashbox and Tom Ford. The increases resulted from new product offerings, as well as expanded distribution in a number of channels.
The Estée Lauder and Clinique brands also posted higher makeup sales. Estée Lauder sales got a boost from new launches such as Pure Color Envy liquid lip potion and Double Wear Makeup to Go liquid compact.
While new product offerings from Clinique, such as Beyond Perfecting foundation and concealer, contributed sales gains, the higher sales from Clinique were driven by accelerated orders.
In fragrance, the sales increase primarily reflected strong double-digit gains from luxury brands Jo Malone London and Tom Ford, higher sales from the Aramis and Designer Fragrances division, and incremental sales from recent acquisitions.
The hair care category’s growth benefited from expanded global distribution, primarily in salons, freestanding stores and travel retail for Aveda and from specialty-multi brand retailers for Bumble and bumble.