07.01.22
New York, NY
www.elcompanies.com
Sales: $16.2 billion
Key Personnel: William P. Lauder, executive chairman; Fabrizio Freda, president and CEO; Roberto Canevari, executive vice president, global supply chain; Carl Haney, executive vice president, research, product and innovation officer; Jane Hertzmark Hudis, executive group president; Jane Lauder, executive vice president, enterprise marketing and chief data officer; Leonard 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; Deirdre Stanley, executive vice president and general counsel; Tracey T. Travis, executive vice president of finance and chief financial officer; Meredith Webster, executive vice president, global communications and public affairs
Major Products: Cosmetics, skin care, fragrances and hair care. Brands include Aerin Beauty, Aramis, Aveda, Becca, Bobbi Brown, Bumble and Bumble, Clinique, Darphin Paris, Dr.Jart+, Editions de Parfums Frederic Malle, Ermenegildo Zegna, Estée Lauder, GlamGlow, Jo Malone London, Kilian Paris, La Mer, Lab Series, Le Labo, MAC, Origins, Rodin Alio Lusso, Smashbox, Tom Ford Beauty, Too Faced
New Products: Skincare—Le Mer The Hydrating Infused Emulsion and The Treatment Lotion, Advanced Night Repair Synchronized Multi-Recovery Complex, Revitalizing Supreme+ Bright, Perfectionist Pro from Estée Lauder (relaunch), Genaissance de la Mer The Concentrated Night Balm from La Mer, and Moisture Surge 100H Auto-Replenishing Hydrator from Clinique; Makeup—MAC Stack mascara, MAC Stranger Things collection, Estée Lauder Double Wear Sheer Long-Wear Makeup; Fragrance—Costa Azzurra parfum, Rose de Chine and Rose d’Amalfi. Hair care—Bb. Thickening Plumping Mask and Bb. Thickening Go Big Plumping Treatment; Fragrance—Bitter Peach and Rose Prick Private Blend. Acquisition—Deciem
Comments: As travel restrictions lifted, so did Estée Lauder Companies’ sales. For the nine months ended March 31, 2022, corporate sales surged 15.3% to nearly $14.2 billion. What are consumers clamoring as they get on with their lives? Everything ELC has to offer. Sales rose in every category and every region.
Despite lockdowns in China, sales in Asia/Pacific rose due to gains in China and Korea. Double digit gains were posted in Europe, the Middle East & Africa (EMEA) and The Americas. Results got a boost from the Q4 acquisition of Deceim. Sales increased in Europe, the Middle East & Africa, led by travel retail and the UK. Increased sales in the Americas reflected higher net sales throughout the region. More specifically, sales in the Americas soared 25% to more than $3.5 billion, helped along by brick-and-mortar re-openings, and demand for Deceim, MAC and Clinique. Sales in EMEA rose 18% to $6.2 billion. The region benefitted from fewer travel restrictions and the success of the Jo Malone London and La Mer brands.
Just in time for the new Stranger Things Season premiere, MAC Cosmetics launched its Stranger Things exclusive makeup collection in partnership with Netflix.
Sales in Asia-Pacific rose 6% to more than $4.4 billion. Net sales in mainland China increased, thanks to demand for Estée Lauder, La Mer and Jo Malone London brands and the launch on a new third-party online platform. Sales increased in Korea, too.
By category, skin care sales rose 12.5%. Skin care got a lift from Clinique, La Mer and Deceim. Fragrance sales grew double-digits, led by Jo Malone London, Tom Ford Beauty and Le Labo. Sales increases from Estée Lauder and MAC drove the increases in the makeup sales. Hair care sales increased due to higher net sales from Aveda and Bumble and Bumble.
Makeup net sales increased 13.2% for the nine months, led by higher net sales from Estée Lauder and MAC, especially Ruby’s Crew and Re-Think Pink lip colors, and Magic Extension mascara.
Fragrance sales soared 34.4% to nearly $2 billion, led by demand for Jo Malone London, Tom Ford Beauty and Le Labo. Despite the division’s success, ELC culled the fragrance herd, cutting ties with several designers. Licenses were not renewed for Donna Karan New York, DKNY, Michael Kors, Tommy Hilfiger and Ermenegildo Zegna. All of them ended production last month.
Hair care sales rose 13.6% to $475 million, on the strength of Aveda and Bumble and Bumble sales, not to mention recovery of the North American salon business. Aveda gains were due, in part, to the relaunch of Full Spectrum Semi-Permanent Treatment Hair Color. Bumble and Bumble sales gains were due to existing product sales as well as the third quarter launches of Bb. Thickening Plumping Mask and Bb. Thickening Go Big Plumping Treatment.
Through nine months, it has certainly been a great start for ELC. But Q4 got off on the wrong foot when long-time Global President John Demsey was fired for an insensitive Instagram post. Demsey spent 31 years at ELC in a variety of leadership positions.
In fiscal 2021, sales jumped 13%. Skin care accounted for 58% of sales, followed by makeup (26%), fragrance (12%) and hair care (4%).
Global prestige skin care led the way due to the strength of hero product lines like Advanced Night Repair from Estée Lauder, Crème de La Mer from La Mer, and the Dramatically Different products and Even Better Clinical Radical Dark Spot Corrector + Interrupter from Clinique, as well as recent product launches, growth in Asia and targeted expanded consumer reach. The launches of Advanced Night Repair Synchronized Multi-Recovery Complex, Revitalizing Supreme+ Bright, and the relaunch of Perfectionist Pro from Estée Lauder, Genaissance de la Mer, The Concentrated Night Balm from La Mer, and Moisture Surge 100H Auto-Replenishing Hydrator from Clinique were particularly successful in Asia/Pacific, according to ELC. Skin care sales rose in every geographic region, led by Estée Lauder, La Mer and Dr. Jart+, which was acquired in December 2019.
Global prestige makeup sales declined, as the pandemic limited social and business activities and consumers overall wore less makeup. Some sub-categories performed better than others like lip gloss and makeup with skin care benefits such as tinted moisturizers. Demand remained weak for lipstick and foundation. Makeup net sales benefited from targeted expanded consumer reach and the continued success of existing products, such as the Futurist line of products from Estée Lauder, The Luminous Lifting Cushion Foundation from La Mer and the Lip Injection line from Too Faced.
Fragrance sales rose, driven by continued resilience in luxury fragrance. The growth was led by strength in colognes, bath, body and home subcategories at Jo Malone London, the successful launches of Bitter Peach and Rose Prick Private Blend fragrances from Tom Ford Beauty and targeted expanded consumer reach of Le Labo.
Hair care sales grew as salons and retail stores reopened throughout the year and strong online growth continued.
The Estée Lauder Companies opened its state-of-the-art distribution center in Galgenen, Switzerland to accommodate the future growth of its global travel retail business. The new 300,000 square-foot facility expands upon the company’s existing distribution footprint in Switzerland. Travel retail accounted for 28% of ELC’s sales in fiscal year 2021.
Umair Ansari, VP/GM, Travel Retail EMA; Fabrizio Freda, president and CEO; Jane Lauder, EVP, enterprise marketing and chief data officer; and Roberto Canevari, EVP, global supply chain, cut the ribbon at the new Galgenen distribution center.
“As we mark the 30th anniversary of The Estée Lauder Companies’ travel retail business, we are incredibly proud of our track record of exciting and delighting travelers all over the world with our exclusive products and high-touch experiences for the travel retail industry and having made the channel an integral engine of growth for ELC,” said Israel Assa, global president, travel, ELC. “As we look to the future, this investment here at Galgenen is a testament to our belief in the long-term growth potential of this channel and that by investing in these capabilities and with our retailers, we can capture the next generation of growth in this dynamic, prestige marketplace.”
The building’s design is based on the newest standards to reduce energy and water consumption. It features total LED lighting, an energy-efficient HVAC system and the roof’s solar panels generate 1600 kilowatts at peak performance. Furthering sustainability efforts, a comprehensive waste management system has been implemented to separate out numerous recyclables, with electric trucks ready for waste removal.
www.elcompanies.com
Sales: $16.2 billion
Key Personnel: William P. Lauder, executive chairman; Fabrizio Freda, president and CEO; Roberto Canevari, executive vice president, global supply chain; Carl Haney, executive vice president, research, product and innovation officer; Jane Hertzmark Hudis, executive group president; Jane Lauder, executive vice president, enterprise marketing and chief data officer; Leonard 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; Deirdre Stanley, executive vice president and general counsel; Tracey T. Travis, executive vice president of finance and chief financial officer; Meredith Webster, executive vice president, global communications and public affairs
Major Products: Cosmetics, skin care, fragrances and hair care. Brands include Aerin Beauty, Aramis, Aveda, Becca, Bobbi Brown, Bumble and Bumble, Clinique, Darphin Paris, Dr.Jart+, Editions de Parfums Frederic Malle, Ermenegildo Zegna, Estée Lauder, GlamGlow, Jo Malone London, Kilian Paris, La Mer, Lab Series, Le Labo, MAC, Origins, Rodin Alio Lusso, Smashbox, Tom Ford Beauty, Too Faced
New Products: Skincare—Le Mer The Hydrating Infused Emulsion and The Treatment Lotion, Advanced Night Repair Synchronized Multi-Recovery Complex, Revitalizing Supreme+ Bright, Perfectionist Pro from Estée Lauder (relaunch), Genaissance de la Mer The Concentrated Night Balm from La Mer, and Moisture Surge 100H Auto-Replenishing Hydrator from Clinique; Makeup—MAC Stack mascara, MAC Stranger Things collection, Estée Lauder Double Wear Sheer Long-Wear Makeup; Fragrance—Costa Azzurra parfum, Rose de Chine and Rose d’Amalfi. Hair care—Bb. Thickening Plumping Mask and Bb. Thickening Go Big Plumping Treatment; Fragrance—Bitter Peach and Rose Prick Private Blend. Acquisition—Deciem
Comments: As travel restrictions lifted, so did Estée Lauder Companies’ sales. For the nine months ended March 31, 2022, corporate sales surged 15.3% to nearly $14.2 billion. What are consumers clamoring as they get on with their lives? Everything ELC has to offer. Sales rose in every category and every region.
Despite lockdowns in China, sales in Asia/Pacific rose due to gains in China and Korea. Double digit gains were posted in Europe, the Middle East & Africa (EMEA) and The Americas. Results got a boost from the Q4 acquisition of Deceim. Sales increased in Europe, the Middle East & Africa, led by travel retail and the UK. Increased sales in the Americas reflected higher net sales throughout the region. More specifically, sales in the Americas soared 25% to more than $3.5 billion, helped along by brick-and-mortar re-openings, and demand for Deceim, MAC and Clinique. Sales in EMEA rose 18% to $6.2 billion. The region benefitted from fewer travel restrictions and the success of the Jo Malone London and La Mer brands.
Just in time for the new Stranger Things Season premiere, MAC Cosmetics launched its Stranger Things exclusive makeup collection in partnership with Netflix.
By category, skin care sales rose 12.5%. Skin care got a lift from Clinique, La Mer and Deceim. Fragrance sales grew double-digits, led by Jo Malone London, Tom Ford Beauty and Le Labo. Sales increases from Estée Lauder and MAC drove the increases in the makeup sales. Hair care sales increased due to higher net sales from Aveda and Bumble and Bumble.
Makeup net sales increased 13.2% for the nine months, led by higher net sales from Estée Lauder and MAC, especially Ruby’s Crew and Re-Think Pink lip colors, and Magic Extension mascara.
Fragrance sales soared 34.4% to nearly $2 billion, led by demand for Jo Malone London, Tom Ford Beauty and Le Labo. Despite the division’s success, ELC culled the fragrance herd, cutting ties with several designers. Licenses were not renewed for Donna Karan New York, DKNY, Michael Kors, Tommy Hilfiger and Ermenegildo Zegna. All of them ended production last month.
Hair care sales rose 13.6% to $475 million, on the strength of Aveda and Bumble and Bumble sales, not to mention recovery of the North American salon business. Aveda gains were due, in part, to the relaunch of Full Spectrum Semi-Permanent Treatment Hair Color. Bumble and Bumble sales gains were due to existing product sales as well as the third quarter launches of Bb. Thickening Plumping Mask and Bb. Thickening Go Big Plumping Treatment.
Through nine months, it has certainly been a great start for ELC. But Q4 got off on the wrong foot when long-time Global President John Demsey was fired for an insensitive Instagram post. Demsey spent 31 years at ELC in a variety of leadership positions.
In fiscal 2021, sales jumped 13%. Skin care accounted for 58% of sales, followed by makeup (26%), fragrance (12%) and hair care (4%).
Global prestige skin care led the way due to the strength of hero product lines like Advanced Night Repair from Estée Lauder, Crème de La Mer from La Mer, and the Dramatically Different products and Even Better Clinical Radical Dark Spot Corrector + Interrupter from Clinique, as well as recent product launches, growth in Asia and targeted expanded consumer reach. The launches of Advanced Night Repair Synchronized Multi-Recovery Complex, Revitalizing Supreme+ Bright, and the relaunch of Perfectionist Pro from Estée Lauder, Genaissance de la Mer, The Concentrated Night Balm from La Mer, and Moisture Surge 100H Auto-Replenishing Hydrator from Clinique were particularly successful in Asia/Pacific, according to ELC. Skin care sales rose in every geographic region, led by Estée Lauder, La Mer and Dr. Jart+, which was acquired in December 2019.
Global prestige makeup sales declined, as the pandemic limited social and business activities and consumers overall wore less makeup. Some sub-categories performed better than others like lip gloss and makeup with skin care benefits such as tinted moisturizers. Demand remained weak for lipstick and foundation. Makeup net sales benefited from targeted expanded consumer reach and the continued success of existing products, such as the Futurist line of products from Estée Lauder, The Luminous Lifting Cushion Foundation from La Mer and the Lip Injection line from Too Faced.
Fragrance sales rose, driven by continued resilience in luxury fragrance. The growth was led by strength in colognes, bath, body and home subcategories at Jo Malone London, the successful launches of Bitter Peach and Rose Prick Private Blend fragrances from Tom Ford Beauty and targeted expanded consumer reach of Le Labo.
Hair care sales grew as salons and retail stores reopened throughout the year and strong online growth continued.
The Estée Lauder Companies opened its state-of-the-art distribution center in Galgenen, Switzerland to accommodate the future growth of its global travel retail business. The new 300,000 square-foot facility expands upon the company’s existing distribution footprint in Switzerland. Travel retail accounted for 28% of ELC’s sales in fiscal year 2021.
Umair Ansari, VP/GM, Travel Retail EMA; Fabrizio Freda, president and CEO; Jane Lauder, EVP, enterprise marketing and chief data officer; and Roberto Canevari, EVP, global supply chain, cut the ribbon at the new Galgenen distribution center.
“As we mark the 30th anniversary of The Estée Lauder Companies’ travel retail business, we are incredibly proud of our track record of exciting and delighting travelers all over the world with our exclusive products and high-touch experiences for the travel retail industry and having made the channel an integral engine of growth for ELC,” said Israel Assa, global president, travel, ELC. “As we look to the future, this investment here at Galgenen is a testament to our belief in the long-term growth potential of this channel and that by investing in these capabilities and with our retailers, we can capture the next generation of growth in this dynamic, prestige marketplace.”
The building’s design is based on the newest standards to reduce energy and water consumption. It features total LED lighting, an energy-efficient HVAC system and the roof’s solar panels generate 1600 kilowatts at peak performance. Furthering sustainability efforts, a comprehensive waste management system has been implemented to separate out numerous recyclables, with electric trucks ready for waste removal.
