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    Breaking News

    Estée Lauder’s Q3 Sales Soar

    ...

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    06.01.18
    Whether you’re talking geography, product mix or category, it’s all clicking for Estée Lauder. The Estée Lauder Companies reported favorable financial results for its third quarter ended March 31, 2018. Net sales rose 18% to $3.37 billion while earnings increased 25% to $372 million.


    “Our company delivered another excellent quarter in what we expect to be an outstanding fiscal year. Many areas of our business that contributed to our strong first-half results continued to thrive in our third quarter,” said Fabrizio Freda, president and CEO.


    “Among our multiple engines of growth, travel retail, online and Asia again were standouts, and we experienced strong momentum in other high growth channels and markets,” he added.


    According to Freda, the company-wide performance reflected robust global demand across the portfolio, with virtually all brands posting sales growth. Furthermore, all three of the biggest brands grew globally, with exceptional growth in Estée Lauder. These results, said Freda, reflect the company’s strong array of hero products, as well as product and service innovations that resonated well with today’s diverse global consumers.


    Skin care sales rose 31% in the quarter. Net sales growth benefitted from increases in Asia, where skin care represents about two-thirds of the region’s product category mix. Growth also reflects strong innovations, gains from hero products, and the increasing demand from younger consumers, said ELC.


    There were exceptional double-digit gains in most regions from La Mer, Estée Lauder, Origins and Glamglow, and Clinique achieved solid double-digit growth globally, according to ELC.


    Higher sales at Origins were generated, in large part, from the continued success of several product lines in the facial mask and moisturizer sub-categories. Glamglow’s sales gains reflected strength from its core facial mask products and targeted expanded consumer reach, said ELC while Clinique’s sales gains reflected increases in the brand’s Moisture Surge product line.


    Sales growth in makeup was primarily driven by strong double-digit increases from Estée Lauder and Tom Ford and solid gains from M•A•C and Clinique. Makeup sales for the quarter rose 9%. Sales from Estée Lauder were fueled by the Double Wear foundation and Pure Color product lines. At Tom Ford, higher sales were driven primarily by strength in the eyeshadow sub-category. The higher sales from M•A•C were due to strong growth in the Asia/Pacific region, particularly China and Hong Kong, and in travel retail, as well as success in the specialty-multi channel in the US. Clinique’s sales growth stemmed primarily from emerging markets within Europe.


    These increases were partially offset by lower makeup sales in the US, reflecting slow foot traffic in some US brick-and-mortar stores.


    Fragrance saw a net sales increase, with results up 14%, primarily due to strong double-digit gains from luxury brands. Jo Malone London delivered double-digit growth in every region and in travel retail. Le Labo, By Kilian and Editions de Parfums Frédéric Malle each benefited from growth in existing products and targeted expanded consumer reach, said ELC. Partially offsetting these increases were lower sales of certain Estée Lauder fragrances.
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