Incremental sales from the company’s recent acquisitions of By Kilian, Becca and Too Faced contributed approximately 90 basis points to sales growth, of which less than half is attributable to Too Faced, said the company.
Fabrizio Freda, president and chief executive officer, said, “Our second quarter sales growth accelerated as planned, reflecting the benefits of our portfolio diversity by brand, channel, product category and country. Our small, mid-sized and luxury brands continued to lead growth, contributing strong sales increases, and recent acquisitions added incremental sales. Additionally, among our large brands, Estée Lauder and M•A•C each grew in constant currency. We achieved strong double-digit growth in our most profitable channels including travel retail, online and specialty-multi. Sales growth accelerated in most product categories and every geographic region in constant currency. We have strategically invested in these growth engines to produce strong results, as well as position us for continued future success. For the quarter, our profits were higher than expected, reflecting our ability to leverage sales growth and manage expenses.
“During the quarter, we completed the acquisitions of Becca and Too Faced. We are excited by the opportunities these fast-growing brands bring to our company. Both brands complement our makeup portfolio, which is the fastest-growing category in prestige beauty, and strengthen our position in the specialty-multi retail channel globally. We have ample room to expand their consumer reach.
