• Login
    • Join
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Formulary
    • Exclusives
    • Top Companies
    • Raw Materials
    • End-User
    • Packaging
    • Directories
    • Events
    • Jobs
    • More
  • Magazine
  • News
  • Formulary
  • Exclusives
  • Top Companies
  • Raw Materials
  • End-User
  • Packaging
  • Directories
  • Events
  • Jobs
  • Current / Back Issues
    Features
    Columns
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    Top Features
    A Conversation with the Responsible Flushing Alliance

    Nice-Pak Meets Consumer Demands

    Wipes Manufacturers Meet Demand Surge

    Home Care Wipes: Sustainability in Sharper Focus as Cleaning Frenzy Simmers Following Pandemic

    Formulating with Alternatives In Personal Care Products
    Online Exclusives
    Association News
    Breaking News
    Financial News
    Industry News
    International
    Marketing News
    New Products
    News Front
    Packaging News
    Patents
    Personnel
    Regulations
    Snapshots
    Top News
    Live From Shows
    Top News
    Professional Beauty Association Opens Registration for Summit

    Makeup Leader Laura Geller Teams Up with Actress Fran Drescher

    Skin Care Brand Erno Laszlo Appoints General Manager

    Elemis London Arrives at Bloomingdale’s

    Courtin-Clarins Family Invests in Pai Skincare
    Blog
    Online Exclusives
    Infographics
    Podcasts
    Whitepapers
    Videos
    Expert's Opinion
    HappiTV
    eBook
    Surveys
    International Top 30 Report
    Top 50 Report
    Top Companies
    1. Unilever

    30. Markwins

    18. Amore Pacific

    34. WD-40

    30. Edgewell
    Actives
    Functional Ingredients
    Pigments
    Polymers
    Preservatives
    Surfactants

    Kao Promotes Hand Washing

    Guangzhou Builds Beauty Park To Woo L'Oréal, Estée Lauder

    Chanel Launches Plumping Lipstick

    What You’re Reading on Happi.com

    Mushrooms Are Key Ingredients in Beauty & Wellness
    Air Care/Environmental Fragrance
    AP/Deo
    Color Cosmetics
    Disinfectants
    Fine Fragrance
    Hair Care
    Household Cleaning
    I&I Marketplace
    Laundry Care
    Oral Care
    OTC/Medicated
    Packaging
    Personal Cleansers
    Skin Care
    Sun Care
    Testing

    Professional Beauty Association Opens Registration for Summit

    Makeup Leader Laura Geller Teams Up with Actress Fran Drescher

    Skin Care Brand Erno Laszlo Appoints General Manager

    Elemis London Arrives at Bloomingdale’s

    Courtin-Clarins Family Invests in Pai Skincare
    Lab Equipment
    Mixing
    Packaging
    Testing

    Admix Appoints COO to Advance Manufacturing, Supply Chain & Regulatory Compliance

    Tesco Eliminates Plastic Bags from Online Orders

    Hourglass To Launch Sustainable Cosmetics Line

    Carbon Data for Personal Care Labels

    L’Oréal Hong Kong Launches Cross-Brand Recycling Program
    Contract Manufacturing / Private Label Directory
    Buyer's Guide
    Add New Company
    Corporate Profiles
    International Buyers Guide Companies
    KLK OLEO

    Centerchem Inc

    QRS (Quality Resourcing Services)

    Baralan USA

    BotanicalsPlus
    Live From Shows
    Meetings
    Webinars
    Snapshots
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Columns
      • Digital Edition
      • eNewsletter Archive
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Formulary
    • Directories
      • Buyer's Guide
      • Contract Manufacturing / Private Label Directory
      • Corporate Profiles
      • Add Your Company
    • Raw Materials
      • Actives
      • Functional Ingredients
      • Pigments
      • Polymers
      • Preservatives
      • Surfactants
    • End-User
      • Air Care/Environmental Fragrance
      • AP/Deo
      • Color Cosmetics
      • Disinfectants
      • Fine Fragrance
      • Hair Care
      • Household Cleaning
      • I&I Marketplace
      • Laundry Care
      • Oral Care
      • OTC/Medicated
      • Packaging
      • Personal Cleansers
      • Skin Care
      • Sun Care
      • Testing
    • Packaging
      • Lab Equipment
      • Mixing
      • Packaging
      • Testing
    • Top Companies
      • International Top 30 Report
      • Top 50 Report
    • Online Exclusives
    • Experts Opinion
    • Slideshows
    • HappiTV
    • Videos
    • Podcasts
    • eBook
    • Infographics
    • Blog
    • Whitepapers
    • Surveys
      • R & D Salary Survey
      • Sales & Marketing Salary Survey
    • Job Banks
    • Events
      • Industry Events
      • Live from show Events
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Top Companies Report

    2. Estée Lauder

    ...

    2. Estée Lauder
    Estée Lauder
    Related CONTENT
    • Estée Lauder EVP-Communications To Retire
    • Estée Lauder Expands Beautiful Fragrance Collection
    • Guangzhou Builds Beauty Park To Woo L'Oréal, Estée Lauder
    • What You're Reading on Happi.com
    • ex-Chanel and Estée Lauder Execs Back New Beauty Brand
    Happi Staff07.01.20
    New York, NY
    www.elcompanies.com
    Sales: $14.8 billion

    Key personnel: William P. Lauder, executive chairman; Fabrizio Freda, president and chief executive officer; John Demsey, executive group president; Carl Haney, executive vice president, global research and development, corporate product innovation, package development; Jane Hertzmark Hudis, group president; Leonard A. Lauder, chairman emeritus; Ronald S. Lauder, chairman, Clinique Laboratories, LLC; Sara Moss, vice chairman; Michael O’Hare, executive vice president, global human resources; Gregory F. Polcer, executive vice president, global supply chain; Cedric Prouvé, group president, international; Deirdre Stanley, executive vice president and general counsel; Tracey T. Travis, executive vice president of finance and chief financial officer; Alexandra C. Trower, executive vice president, global communications

    Major products: Cosmetics, skin care, hair care and fragrances: Aerin Beauty, Aramis, Aveda, Becca, Bobbi Brown, Bumble and bumble, Clinique, Darphin, DKNY, Donna Karan, Editions de Parfums Frederic Malle, Ermenegildo Zegna, Estée Lauder, GlamGlow, Jo Malone, Kilian, Kiton, LaMer, Lab Series, Le Labo, MAC, Michael Kors, Origins, Rodin, Smashbox, Tom Ford Beauty, Tommy Hilfiger, Too Faced, Tory Burch

    New products: Skin Care: Estée Lauder Perfectionist Pro Rapid Brightening Treatment, Estée Lauder Advanced Night Repair Eye Supercharged, Estée Lauder Advanced Night Repair Intense Reset Concentrate, Clinique’s Even Better Clinical Radical Dark Spot Corrector + Interrupter, Eye Concentrate from La Mer. Color: La Mer The Luminous Lifting Cushion Foundation. Fragrance: Michael Kors Sexy Ruby, Métallique, Soleil Neige, Poppy and Barley. Acquisitions: Dr. Jart+ and Have & Be

    Comments: Like so many other beauty companies, Estée Lauder’s recent results have been impacted by COVID-19. For the fiscal third quarter ended March 31, 2020, sales fell more than 10% to $3.3 billion and the company reported a net loss of $4 million, compared to earnings of $555 million a year ago. As one might expect, with so many consumers staying at home, makeup brands were hit hardest, with sales falling 21% to $1.1 billion, but Estée Lauder said sales fell in every category; skin care declined 1% to $1.7 billion; fragrance dropped 11% to $349 million and hair care fell 12% to $119 million.

    In a call with analysts, Tracey Thomas Travis, executive vice president, finance and chief financial officer, called COVID-19 the most significant challenge ELC has faced as a public company, as brick and mortar retail closed and the company pivoted to online.

    “Our online growth accelerated sharply at the end of March and continued to rise in April,” she explained, but she also noted that The Americas region and the makeup category suffered the biggest declines. The December acquisition of Dr. Jart+ added about two points of net sales growth.

    For the nine months of FY20, sales rose 5% to nearly $11.9 billion, but net income fell 29% to about $1.1 billion. Skin care sales rose 16% to nearly $5.8 billion and makeup sales increased less than 1% to over $4.2 billion. Both fragrance and hair care declined less than 1%, to $1.4 billion and $417 million, respectively.

    Skin care sales rose on the strength of Estée Lauder and La Mer brand sales, as well as from the Q2 acquisition of Have & Be, which added $67 million. Asia/Pacific and Europe, the Middle East & Africa all performed well, as did mainland China and travel retail.

    Makeup sales fell slightly due to lower North American demand for MAC, Clinique, Too Faced and Becca. Estée Lauder’s makeup sales rose on the strength of the Double Wear and Futurist brands. Declining fragrance sales were blamed on lower designer and Estée Lauder sales.

    During an AllianceBernstein Conference in April, Freda noted that since the coronavirus hit, ELC reorganized its leadership team into four groups. The first is dedicated to managing throughout the crisis with flexibility and agility; the second is focused on health and safety protocols for employees and consumers.

    “As we reopen offices and stores, the third is concentrated on adjusting our cost structure throughout this temporary phase, while the fourth is wholly focused on the future,” he explained. “As we anticipate new drivers for the business, each work stream is moving our business forward in earnest.”

    But to what will consumers come back? Asian markets were the first to be impacted by COVID-19 and the first to return to some sort of normalcy; as such, they offer clues to what to expect in the rest of the world. Online shopping will continue to expand at the expense of brick and mortar. Moreover, new consumer groups, specifically, those 55 and older, have discovered the convenience of online ordering during the pandemic.

    Still, Freda is hopeful that when a vaccine is developed and the virus is defeated, consumers will return to normal social relations; which means more consumption, especially of personal care products.

    “What worries me at the moment is the potential short term impact of a recession,” he explained.

    Therefore, ELC is reinforcing its brands, reviewing its price points and making sure its brands can withstand a downturn. The company certainly withstood the challenges of the previous fiscal year. In fiscal 2019, sales rose more than 8%, as the increase reflected strong growth in Europe, the Middle East & Africa, as well as Asia Pacific, and continued growth in skin care and makeup. Skin care accounted for 44% of sales, followed by makeup, 39%; fragrance, 12%; hair care, 4% and other, 1%.

    Skin care sales rose 17% to more than $6.5 billion, due to big gains in Estée Lauder and La Mer brands (which contributed more than $900 million in sales), and increased Estée Lauder brand sales in China and Hong Kong. The increase in net sales from La Mer reflected growth from most markets, led by China and Hong Kong, and benefited from the strength in hero products, such as Crème de la Mer and The Concentrate, other existing products, such as The Treatment Lotion, and targeted expanded consumer reach. The net sales growth from Estée Lauder and La Mer also reflected the increase in Chinese travelers, which led to the brands’ growth in travel retail and department stores, and higher net sales in our online channel in China (primarily third-party online malls).

    Makeup sales rose 4% to nearly $5.9 billion, thanks to higher sales of $350 million for Estée Lauder, MAC, Tom Ford and La Mer. Estée Lauder’s gains were primarily due to the success of Double Wear franchise, Futurist Aqua Brilliance and the Pure Color line of products, which drove net sales higher in China, Hong Kong and Korea, as well as in travel retail. MAC gains came primarily from Asia/Pacific, led by China and Hong Kong, as well as the Middle East. Higher net sales in Asia/Pacific were primarily due to targeted expanded consumer reach and the continued strength of lip products in the region. MAC also benefitted from increases in travel retail business, third-party online malls and the specialty-multi channel. Partially offsetting these increases for the brand were continued declines in the US and UK primarily due to slower traffic in certain department stores and freestanding stores. The Tom Ford gains came from higher net sales of lipstick and eyeshadow products in Asia/Pacific, particularly in China, and travel retail business. La Mer benefited from new products, such as The Luminous Lifting Cushion Foundation, and targeted expanded consumer reach.

    Fragrance sales fell 1% to $1.8 billion, due to a decline of $110 million in sales of designer fragrances and Estée Lauder. Designer fragrance sales fell due to unfavorable comparison to the prior-year launch of Michael Kors Sexy Ruby in North America, as well as the challenging retail environment in the UK. The decrease in net sales from Estée Lauder was primarily due to the change in product mix included in the brand’s holiday blockbuster promotion. Partially offsetting these decreases were higher net sales from Jo Malone London, Le Labo and Tom Ford, combined, of approximately $81 million.
    Declining sales of Aveda and Bumble and Bumble products were blamed for the decline in hair care sales.

    Last month, more than 1,000 Estée Lauder employees signed a petition calling for the removal of the company’s founder’s son, Ronald S. Lauder, from the board of directors. They cited his ties to President Donald J. Trump, noting that he has contributed more than $1 million to the president’s campaign.

    Estée Lauder Forms Alliance with Epigenetics Expert
    • To further advance more than a decade of circadian rhythm research in skin, the Estée Lauder brand has inked a collaboration with Dr. Paolo Sassone-Corsi, director of the Center for Epigenetics and Metabolism at the University of California, Irvine. The move connects Estée Lauder’s skin biology research program with the expertise and complementary research focus of Dr. Sassone-Corsi.

    This collaboration will build upon Estée Lauder’s skin research and contribute to its recent findings by investigating additional molecular mechanisms related to a newly identified micro signaling molecule. The two laboratories will independently explore the interaction between this molecule and other skin activities, including circadian machinery, to deepen the understanding of how skin acts and communicates. This research seeks new information about how this powerful micro signaling molecule interacts with essential skin pathways, in order to better understand how to impact the “memory” of skin to help it act and look younger.

    Over the past three decades, Sassone-Corsi has conducted research focused on unraveling how epigenetics is critical for healthy lifespan, wellbeing, appropriate circadian sleep cycles, aging and disease prevention. His discoveries have changed the circadian clock paradigm, proving the existence of secondary clocks that control peripheral tissues throughout the body, according to ELC. Research conducted in the Sassone-Corsi Laboratory has charted new territory in understanding how circadian clocks communicate to synchronize cellular processes, linking epigenetics and metabolism in a vast array of biological systems. He has published several hundred peer-reviewed articles, many in the highest impact science journals, and has received many international scientific awards.
    Related Searches
    • Color Cosmetics
    • Fine Fragrance
    • Skin Care
    Related Knowledge Center
    • Skin Care
    • Fine Fragrance
    • Color Cosmetics
    Suggested For You
    Estée Lauder EVP-Communications To Retire Estée Lauder EVP-Communications To Retire
    Estée Lauder Expands Beautiful Fragrance Collection Estée Lauder Expands Beautiful Fragrance Collection
    Guangzhou Builds Beauty Park To Woo L Guangzhou Builds Beauty Park To Woo L'Oréal, Estée Lauder
    What You What You're Reading on Happi.com
    ex-Chanel and Estée Lauder Execs Back New Beauty Brand ex-Chanel and Estée Lauder Execs Back New Beauty Brand
    Estée Lauder Creates New Equity and Engagement Center of Excellence Estée Lauder Creates New Equity and Engagement Center of Excellence
    Estée Lauder Signs Actress Ana de Armas Estée Lauder Signs Actress Ana de Armas
    Estée Lauder Appoints SVP, New Business Development Estée Lauder Appoints SVP, New Business Development
    What You What You're Reading on Happi.com
    Net Zero Emissions for Estée Lauder Companies Net Zero Emissions for Estée Lauder Companies
    Estée Lauder Appoints MAC Leadership Estée Lauder Appoints MAC Leadership
    Estée Lauder Serum Launches Into Space with NASA Estée Lauder Serum Launches Into Space with NASA
    Estée Lauder Mourns Passing of Paolo Sassone-Corsi Estée Lauder Mourns Passing of Paolo Sassone-Corsi
    Leonard Lauder Leonard Lauder's Memoir Is Coming
    Indie Brands Spark Innovation in Global Beauty Category Indie Brands Spark Innovation in Global Beauty Category

    Related Top Companies Report

    • Household Cleaning | Personal Cleansers | Skin Care
      49. Dr. Bronner’s

      49. Dr. Bronner’s

      ...
      Happi Staff 07.01.20

    • Color Cosmetics | Fine Fragrance | Skin Care
      50. KKW Beauty

      50. KKW Beauty

      ...
      Happi Staff 07.01.20

    • AP/Deo | Hair Care | Personal Cleansers | Skin Care
      48. Herbalife

      48. Herbalife

      ...
      Happi Staff 07.01.20


    • Color Cosmetics | Household Cleaning | Skin Care
      46. Honest Company

      46. Honest Company

      ...
      Happi Staff 07.01.20

    • Color Cosmetics | Hair Care | Skin Care
      44. Kylie Cosmetics

      44. Kylie Cosmetics

      ...
      Happi Staff 07.01.20

    • Color Cosmetics | Hair Care | Skin Care
      45. Atlantic Coast Brands

      45. Atlantic Coast Brands

      ...
      Happi Staff 07.01.20


    • Color Cosmetics | Hair Care | Personal Cleansers | Skin Care
      40. Prestige Consumer Healthcare

      40. Prestige Consumer Healthcare

      ...
      Happi Staff 07.01.20

    • Color Cosmetics | OTC/Medicated | Personal Cleansers | Skin Care
      39. PDC Brands

      39. PDC Brands

      ...
      Happi Staff 07.01.20

    • Color Cosmetics | Skin Care
      38. E.L.F. Beauty

      38. E.L.F. Beauty

      ...
      Happi Staff 07.01.20


    • Color Cosmetics | Hair Care | Skin Care
      37. Tupperware

      37. Tupperware

      ...
      Happi Staff 07.01.20

    • Hair Care | Skin Care
      35. Monat Global

      35. Monat Global

      ...
      Happi Staff 07.01.20

    • Color Cosmetics
      33. Jafra Cosmetics

      33. Jafra Cosmetics

      ...
      Happi Staff 07.01.20


    • Color Cosmetics | Personal Cleansers | Skin Care
      31. Beautycounter

      31. Beautycounter

      ...
      Happi Staff 07.01.20

    • Skin Care
      29. Neora

      29. Neora

      ...
      07.01.20

    • Color Cosmetics
      25. Markwins

      25. Markwins

      ...
      Happi Staff 07.01.20

    Trending
    • Henkel Appoints New EVP Of Beauty Care
    • Sunscreen On The Spot
    • Guangzhou Builds Beauty Park To Woo L'Oréal, Estée Lauder
    • The Honest Company Files For IPO
    • Estée Lauder Expands Beautiful Fragrance Collection
    Breaking News
    • Professional Beauty Association Opens Registration for Summit
    • Makeup Leader Laura Geller Teams Up with Actress Fran Drescher
    • Skin Care Brand Erno Laszlo Appoints General Manager
    • Elemis London Arrives at Bloomingdale’s
    • Courtin-Clarins Family Invests in Pai Skincare
    View Breaking News >
    CURRENT ISSUE

    Household & Personal Care Wipes Spring 2021

    • A Conversation with the Responsible Flushing Alliance
    • Nice-Pak Meets Consumer Demands
    • Wipes Manufacturers Meet Demand Surge
    • Home Care Wipes: Sustainability in Sharper Focus as Cleaning Frenzy Simmers Following Pandemic
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    KD Pharma Acquires Rohner AG Manufacturing Assets
    Thorne Healthtech and PreCon Health to Launch Supplements for Pre-, Post-Impact Brain Health
    Green Leafy Vegetable Intervention Reduces Marker of Colorectal Cancer Risk, Study Finds
    Coatings World

    Latest Breaking News From Coatings World

    BCF's Tom Bowtell Voted VP of World Coatings Council
    Eckart Launches STAPA HCP 4000 Range of Silver-metallic Pigment Pastes
    Chromaflo Technologies to Sponsor, Exhibit at North American Pultrusion Conference 2021
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Avantor to Acquire Ritter GmbH and Affiliates for $1B
    ZOLL Buys Sleep Apnea Device Maker Respicardia
    Digital Diabetes Management Market Projected to Reach $54 Billion by 2027
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Lonza Expands PyroTec PRO for Endotoxin Testing
    FDA Accepts Airway Therapeutics’ IND for COVID Treatment
    Sanofi Invests in Cutting Edge Vax Production Site in Singapore
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    The Honest Co. Files for an Initial Public Offering
    China Builds ‘Beauty and Healthcare Industrial Park’ in Guangzhou
    Edition Spéciale by Luxe Pack is Postponed
    Happi

    Latest Breaking News From Happi

    OTC Pain Relief QR Cream Debuts in US Market
    Professional Beauty Association Opens Registration for Summit
    Makeup Leader Laura Geller Teams Up with Actress Fran Drescher
    Ink World

    Latest Breaking News From Ink World

    Kumon North America Adds Speedmaster XL 106 from Heidelberg
    SE-DA Invests in Kornit Presto S
    Iron Oxide Pigments Market to Register 4.7% CAGR from 2021 to 2028: GVR
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Mark Andy launches monochrome digital print bar
    Label Traxx launches Siteline online artwork approvals system
    Kocher + Beck appoints new regional sales manager
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    NXTNano Adding Three Lines
    Honest Company Plans IPO
    Asia Wipes Summit Held Successfully in Shanghai
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    SynerFuse, Cirtec Medical Partner to Develop Back Pain Management Device
    New Biosealant Could Stabilize Cartilage, Boost Healing After Injury
    Google Executive Joins SeaSpine's Board of Directors
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    NREL: 10 Teams Emerge Victorious in Round 4 of American-Made Solar Prize
    Tive Multi-sensor Tracker Solo 5G Relies on Sensirion SHT33
    VTT in 2020: Successful Year Despite Globally Challenging Times

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login