Tom Branna, Editorial Director05.03.21
Driven by gains for its flagship Estée Lauder brand and improvements in Asia-Pacific, The Estée Lauder Companies Inc.'s third quarter sales rose 16% to $3.86 billion. Net sales grew in every region and in most product categories reflecting the recovery in several areas compared to the prior year where brick-and-mortar began to shut down as COVID-19 spread globally. The company reported net earnings of $456 million , compared with a net loss of $6 million a year ago.
“We exceeded our sales and earnings expectations, even as several markets experienced increasing pressure from COVID-19 throughout the quarter," said President and CEO Fabrizio Freda. "Our growth engines of Skin Care and Fragrance were incredibly powerful. Sales rose in every region, led by double-digit growth inAsia/Pacific , where many markets contributed and sales growth in mainland China accelerated. Online thrived as a growth engine, with sales having increased strong double-digits around the world, and Travel Retail excelled. Estée Lauder, La Mer, Jo Malone London, Clinique, and Tom Ford Beauty led the robust performance of many brands in our portfolio."
Freda said fiscal year-to-date sales and adjusted operating margin exceed that of the same period in fiscal 2019, as ELC successfully navigated the challenges of the pandemic. With strong cash flow generation, the company resumed share repurchases in the third quarter.
"We are thrilled to have agreed to increase our ownership in Deciem, becoming majority owners with a path to full ownership in three years. Deciem’s soaring brand The Ordinary and new brand incubation capability further enhance our superior multiple engines of growth strategy.”
Freda emphasized that the company achieved these results while caring for the safety and well-being of its employees and consumers amid the pandemic. At the same time, ELC is investing in many long-term growth drivers, including end-to-end innovation with a new center inShanghai , state of the art manufacturing in Asia/Pacific , global online, and consumer analytics.
"We are progressing on our environmental goals and acting on our social commitments with urgency," he added. "We expect the momentum in our sales growth to build in the fourth quarter of fiscal 2021, not only from easing comparisons but also fundamental strength, as we drive recovery.”
For the nine months, sales rose 3% to $11.86 billion. Net income rose more than 50% to $1.85 billion.
“We exceeded our sales and earnings expectations, even as several markets experienced increasing pressure from COVID-19 throughout the quarter," said President and CEO Fabrizio Freda. "Our growth engines of Skin Care and Fragrance were incredibly powerful. Sales rose in every region, led by double-digit growth in
Freda said fiscal year-to-date sales and adjusted operating margin exceed that of the same period in fiscal 2019, as ELC successfully navigated the challenges of the pandemic. With strong cash flow generation, the company resumed share repurchases in the third quarter.
"We are thrilled to have agreed to increase our ownership in Deciem, becoming majority owners with a path to full ownership in three years. Deciem’s soaring brand The Ordinary and new brand incubation capability further enhance our superior multiple engines of growth strategy.”
Freda emphasized that the company achieved these results while caring for the safety and well-being of its employees and consumers amid the pandemic. At the same time, ELC is investing in many long-term growth drivers, including end-to-end innovation with a new center in
"We are progressing on our environmental goals and acting on our social commitments with urgency," he added. "We expect the momentum in our sales growth to build in the fourth quarter of fiscal 2021, not only from easing comparisons but also fundamental strength, as we drive recovery.”
For the nine months, sales rose 3% to $11.86 billion. Net income rose more than 50% to $1.85 billion.