Tom Branna, Editorial Director02.05.21
The Estée Lauder Companies overcame a global pandemic to post 5% gains in its fiscal 2021 second quarter.
“We are proud to have returned to growth in our second quarter, earlier than we anticipated, demonstrating the enduring success of our multiple engines of growth strategy,” said ELC President and Chief Executive Officer Fabrizio Freda in a statement. “The powerful engines of skin care, fragrance, Asia/Pacific, travel retail in Asia and global online fueled our performance despite the increasing complexity of the pandemic.”
According to Freda, 10 of Lauder’s brands grew during the quarter, and that the business was able to develop relationships with new customers from holiday shopping events. Online sales were particularly strong, and even though most stores were back open despite the coronavirus pandemic, foot traffic was down, Lauder said.
Net sales were $4.85 billion for the quarter ended Dec. 31, up from $4.62 billion in the prior-year period. Net earnings soared 56% to $873 million. A year ago ELC took a one-time charge related to its Too Faced, Smashbox and Becca brands.
In Q2, both Estée Lauder and La Mer posted double-digit gains, and Freda said the quarterly performance gives him confidence that the company can continue to expand, despite the pandemic.
"We still expect to deliver sequentially improving sales growth each quarter for the remainder of fiscal 2021 as we continue driving recovery,” he concluded.
“We are proud to have returned to growth in our second quarter, earlier than we anticipated, demonstrating the enduring success of our multiple engines of growth strategy,” said ELC President and Chief Executive Officer Fabrizio Freda in a statement. “The powerful engines of skin care, fragrance, Asia/Pacific, travel retail in Asia and global online fueled our performance despite the increasing complexity of the pandemic.”
According to Freda, 10 of Lauder’s brands grew during the quarter, and that the business was able to develop relationships with new customers from holiday shopping events. Online sales were particularly strong, and even though most stores were back open despite the coronavirus pandemic, foot traffic was down, Lauder said.
Net sales were $4.85 billion for the quarter ended Dec. 31, up from $4.62 billion in the prior-year period. Net earnings soared 56% to $873 million. A year ago ELC took a one-time charge related to its Too Faced, Smashbox and Becca brands.
In Q2, both Estée Lauder and La Mer posted double-digit gains, and Freda said the quarterly performance gives him confidence that the company can continue to expand, despite the pandemic.
"We still expect to deliver sequentially improving sales growth each quarter for the remainder of fiscal 2021 as we continue driving recovery,” he concluded.