Estée Lauder


Company Headquarters

767 Fifth Avenue, New York, NY 10153, United States

Driving Directions

Brand Description

The Estée Lauder Companies Inc. is one of the world’s leading manufacturers, marketers, and sellers of quality skin care, makeup, fragrance, and hair care products, and is a steward of outstanding luxury and prestige brands globally. The company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, La Mer, Bobbi Brown Cosmetics, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, TOM FORD, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+, and the DECIEM family of brands, including The Ordinary and NIOD.



Key Personnel

  • William P. Lauder
    Executive Chairman
  • 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 of Finance and Chief Financial Officer
  • Meredith Webster
    Executive Vice President, Global Communications and Public Affairs

Yearly results

Sales: 17.7 Billion

Sales rose 4% in fiscal 2022. Net earnings fell more than 14% to about $2.4 billion. The company blamed the decline, in part, on restructuring charges.

By segment, skin care sales rose 4% to nearly $9.9 billion. Skin care net sales grew in The Americas, which was offset by a decline in the EMEA region. Net sales growth from La Mer, Clinique and Bobbi Brown was offset by a decline from Estée Lauder. Double-digit growth from La Mer was driven by strength among Chinese consumers in both mainland China and travel retail. Net sales growth reflected increases in hero products, including Crème de la Mer and the upgrade to The Treatment Lotion. The Hydrating Infused Emulsion intro and the launch on a new online platform in mainland China, also contributed to growth.

Clinique net sales growth was driven by strong demand for its hero products, including the Take The Day Off line of products and Even Better Clinical Radical Dark Spot Corrector + Interrupter, as well as the launch of Smart Clinical Repair Wrinkle Correcting Serum. Bobbi Brown delivered double-digit skin care net sales growth in every region, led by robust demand from Chinese consumers. Net sales growth reflected increases in hero products, including Soothing Cleansing Oil and Vitamin Enriched Face Base. Successful performance during holiday and key shopping moments, as well as targeted consumer reach also contributed to growth.

Estée Lauder skin care net sales declined, reflecting challenges in the second half of fiscal 2022 due to the resurgence of covid-19 cases in Asia that led to increased restrictions. Estée Lauder was disproportionately impacted by  temporarily reduced capacity at Shanghai distribution facilities in Q4.

Makeup sales increased 11% to $4.6 billion. Sales increased across brands, led by MAC and Estée Lauder. By region, Europe and North America led gains. MAC’s double-digit net sales growth was driven by hero products, such as Studio Fix, the launch of MACStack mascara, and successful social media campaigns to drive the makeup renaissance. Double-digit net sales growth from Estée Lauder was fueled by the Double Wear and Futurist foundation product lines, as well as the successful launch of Double Wear Sheer Long-Wear Makeup.

Fragrance sales soared 30% to $2.5 billion, driven by gains in every region and every fragrance brand. Leading the way were Jo Malone London, Tom Ford Beauty and Le Labo. Jo Malone London’s sales grew strong double digits, driven by strength in colognes. Bath & Body and Home also delivered strong growth reflecting consumer habits developed during the pandemic.

Tom Ford Beauty grew strong double digits, reflecting strength in its Signature and Private Blend fragrances. The launch of Ombre Leather Parfum also contributed to growth.

Net sales from Le Labo rose strong double digits with growth in all regions, reflecting the recovery of brick-and-mortar, improved retail traffic and targeted expanded consumer reach. Growth was driven by hero fragrances, such as Santal 33, as well as the successful launch of Thé Matcha 26.

Hair care sales increased 11% to $631 million. The company said sales rose in every region, due to sales gains for Aveda and Bumble and Bumble. The reemergence of brick-and-mortar helped too. Hair care net sales rose across every region. Aveda’s growth was attributed to its hero franchises, including Botanical Repair and Nutriplenish, as well as the relaunch of Full Spectrum Semi-Permanent Treatment Hair Color and the launch of Botanical Repair Strengthening Overnight Serum.

Double-digit net sales growth at Bumble and Bumble came from growth in hero franchises and the launches of Thickening Plumping Mask and Thickening Go Big Plumping Treatment. Targeted expanded consumer reach also contributed to growth, according to ELC.

“Other” product sales rose 9% to $45 million.

By region, Sales in the Americas jumped 22%, EMEA increased 11%, but Asia/Pacific declined 9%.

Gains in the Americas were attributed to strong double digits in the US, Canada and Latin America on the strength of the brick-and-mortar recovery. Sales increased in every product category and in nearly every distribution channel.
In EMEA, net sales grew in nearly every market, led by the UK. The growth reflects strong double-digit recovery in brick-and-mortar.

Covid-19 disrupted sales in Asia/Pacific. ELC said net sales growth in more than half of the markets in the region was offset by increased covid-19 restrictions during the second half of fiscal 2022. Mid-single-digit growth in the first nine months of the fiscal year was offset by the negative impacts from the increased covid-related restrictions in China in the fourth quarter, including the temporarily reduced capacity at the Company’s distribution facilities in Shanghai Net sales declines in makeup and skin care were only partly offset by net sales growth from fragrance and hair care in the region.Net sales declined in brick-and-mortar.

Fiscal 2023 Results

In August 2022, ELC announced an organizational evolution across its brand portfolio to strategically position the company for long-term, sustainable growth in a fast-paced evolving global landscape. Effective September 1, the company’s brand portfolio evolved into two brand clusters led by Jane Hertzmark Hudis, executive group president, and Stéphane de La Faverie, who has been promoted to executive group president. The move was designed to ensure continued portfolio-wide alignment, enabling the business to focus on the greatest areas of opportunity. Both continue to report directly to Freda.

“This evolution further positions The Estée Lauder Companies’ brands to win with consumers in a complex and continuously changing beauty landscape, while elevating our internal talent bench and organizational planning to position us well to deliver on the company’s long-term strategy with agility,” said CEO Fabrizio Freda.

In September 2022, ELC entered into a licensing agreement with Balmain to create Balmain Beauty, a line of luxury beauty products. It will debut in 2024.

A decline in its Asia travel business continues to put a drag on ELC sales. For Q3 ended March 31, 2023, sales fell 12%. For the nine months, sales fell 13% to $12.3 billion. Net earnings fell 56% to $1.04 billion. Despite the results, ELC expects organic net sales to return to growth in the fourth quarter, reflecting continued momentum of post-covid recovery growth in nearly all markets globally. The impacts from the ongoing pressures in Asia travel retail, driven primarily by risks associated with the volatile and slower than originally anticipated pace of recovery, will partially offset growth in other markets.

In April, ELC completed the $2.25 billion acquisition of the Tom Ford brand. For a few days in May, rumors swirled that the ELC c-suite was headed for a shakeup. At the time, billionaire investor Nelson Peltz was said to be demanding changes at the top. After the brief dustup, all seems quiet on the Lauder front. On June 9, MAC Cosmetics launched its Day of Giving. To raise funds for its Viva Glam Campaign, 100% of all lipstick sales will benefit LGBTQ and women’s rights organizations.

Estée Lauder’s Skin Care Research
The Estée Lauder Companies’ R&D teams regularly present research at leading scientific conferences around the world. Most recently, scientists from ELC and the Estée Lauder, Aveda and Lab Series brands presented data that provides new insights in priority areas of skin care and hair care at the 2023 Meeting of the International Societies of Investigative Dermatology (ISID) in Tokyo, Japan. Skin hydration, oxidative damage, scalp aging, men’s skin care, and new clinical methods for assessing treatments for UV damage are among some of the priority areas of research for ELC that were presented by ELC’s scientists at ISID.“At ELC, we continue to take a multidisciplinary scientific approach to skin and hair care, utilizing knowledge and advancements from across industries and the scientific community,” said Dr. Bhushan Hardas, senior vice president, Advanced Technologies. “Our commitment to new science spans biological, material and chemical research, as well as rigorous safety, in vitro and clinical testing in the development of cutting-edge technologies.”This month, ELC’s R&D experts will be in Singapore for the 25th World Congress of Dermatology (WCD). ELC researchers across three brands and ELC R&D will share novel clinical and preclinical results that demonstrate scientific innovation and leadership across emerging areas of skin health and anti-aging in the form of five poster presentations and a satellite symposium during this global event, which takes place every four years.

Sales: 16.2 Billion

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.

Sales: 14.3 Billion

Sales: $14.3 billion

The US leader in prestige beauty was hit by the pandemic in fiscal 2020. Sales fell 3% on the year, but CEO Fabrizio Freda characterized the year as one without parallel, “a dramatic tale of two halves.”

Estée Lauder expanded its Beautiful fragrance collection this year with Beautiful Magnolia.

Aveda announced that all hair, skin and cosmetic products would become 100% vegan for 2021.

MAC Cosmetics teamed up with fashion designer Harris Reed for a limited edition line this year.

In the first half, sales rose 14% driven by gains in prestige beauty in all parts of the world. But when the pandemic took hold, department stores closed, airports were shuttered and consumers turned shut-ins. As a result, Estée Lauder’s sales fell 20%. The company remained profitable by pivoting to online, where fiscal Q4 sales nearly doubled.

“As consumer adoption of online accelerates, so have our investments in high-touch services on our brand sites, such as live chat capability with video, enhanced virtual try-on, livestreaming and more,” explained Freda. “Our targeted investments help us reach more consumers who are spending increasingly more time on our sites, resulting in incredibly strong conversion rates. And this is just the beginning: We have many strategic initiatives underway to further unlock the potential of this important channel.”

Wherever and however consumers shop, they’re buying skin care products. In FY 2020, consumers cared only for skin care. ELC said skin care sales rose 13% last year. In contrast, makeup sales fell 18%, fragrance sales dropped 13% and hair care sales declined 12%. By category, skin care accounted for 52% of sales, followed by makeup (33%), fragrance (11%) and hair care (4%).

Led by Estée Lauder and La Mer brands, skin care sales grew across most regions. Skin care posted strong double-digit growth, due to gains in Asia/Pacific, with significant strength in mainland China, as well as growth in the Balkans and in the UK. It also delivered double-digit growth in travel retail and triple-digit growth online, driven by consumer demand for high loyalty hero franchises, including Advanced Night Repair, Perfectionist, Re-Nutriv, Micro Essence and Revitalizing Supreme+. Double-digit growth from La Mer was also driven by Asia/Pacific, with significant strength in mainland China, and by travel retail given strong growth in hero products, including The Treatment Lotion and relaunches of The Regenerating Serum and The Eye Concentrate.

With La Mer and By Kilian the lone exceptions, sales fell for every ELC brand. The company said the effects of COVID-19 had a larger impact on makeup, particularly foundation and lip, and makeup sales continued to be soft in most markets. Together, these impacts more than offset the 5% growth for the category in the first half of the fiscal year. However, La Mer sales grew despite the impacts of COVID-19 given strong growth in the first half of the fiscal year due to the success of The Luminous Lifting Cushion Foundation in international markets and successful holiday campaigns and events globally.

Fragrance sales fell due primarily to declines from certain designer fragrances, Estée Lauder and Jo Malone London, due to the impacts of COVID-19. Net sales also declined due to the expiration of the Tory Burch license agreement in December 2019. Additionally, the Estée Lauder brand had a difficult comparison due to the launch of Beautiful Belle in the prior-year period. Some good news? ELC reported strong double-digit net sales growth in Asia/Pacific accelerated year over year driven by the luxury and artisanal fragrance portfolio. Net sales from Le Labo rose mid-single digits with growth in nearly all regions and strong double-digit growth in Asia/Pacific and travel retail despite the decline in travel retail net sales in the second half of the fiscal year. Targeted expanded consumer reach also contributed to growth. Jo Malone London continued to grow net sales in Asia/Pacific, led by China, Korea and Japan, with the launches of Poppy & Barley, Vetiver & Golden Vanilla and Valentine’s Day gift sets, as well as targeted expanded consumer reach.

Hair care sales declined at both Aveda and Bumble and Bumble as COVID-19 led to retail and salon closures in the second half of the fiscal year. Prior to that, net sales were flat for the first half of the fiscal year. ELC said sales of Aveda’s Nutriplenish, a new line of hydrating hair care products, were strong globally prior to the salon and store closures related to COVID-19.

Sales were mixed by region. Sales in Asia/Pacific jumped 15% to more than $4.2 billion. Asia was the first to enter a pandemic lockdown and the first to escape it. Sales in Europe, the Middle East and Africa posted a 3% decline in sales to $6.2 billion, but sales in the Americas plunged 20% to about $3.8 billion.

Despite the decline in FY 2020 sales, ELC increased its R&D spending by nearly 13% to $228 million.

A new fiscal year brought better results. For the nine months ended March 31, 2021, sales rose 3% to nearly $12.3 billion. Skin care sales surged 23% to $7.1 billion However, makeup sales continued to slid, falling 24% to $3.2 billion. Fragrance sales rose 6% to $1.4 billion, but hair care sales were flat at $418 million.

In an interview during the Personal Care Product Council’s virtual meeting, Chairman William Lauder said he can see the light at the end of the tunnel, but can’t predict what retail will look like going forward.

“Online sales to consumers have been accelerating for a decade, but now things are moving even faster,” he noted. “How we communicate, interact and engage the consumer has fundamentally changed from a year ago. It is a new reality that we have to stimulate consumers and get them shopping again.

“A lot of people are spending real time at home. There are some fundamental changes in the way we work, play and interact with one another and we have to change.”

Different parts of the world are in different stages of recovery. For the nine months, Asia/Pacific sales jumped 26% to nearly $4.2 billion. Gains in China and Korea, and skin care led the surge. Lauder credited the popularity of Estée Lauder, La Mer and Dr. Jart+ in China and Dr. Jart+ and Jo Malone London in Korea for the gains.

Sales in Europe, the Middle East and Africa were flat at $5.2 billion. The company said results reflected the COVID-19 challenges in the UK, France and Iberia. Travel retail sales grew on the strength of Estée Lauder and La Mer sales.

Sales in the Americas fell 13% to $2.8 billion. Reported net sales in The Americas decreased in virtually all countries. US sales fell $387 million, in all product categories, led by makeup. The decline in North America prestige beauty, primarily makeup, and the ongoing competitive activity also contributed to the decline in net sales. However, direct-to-consumer online net sales in The Americas grew double digits for the nine months and represented approximately 22% of total net sales in the region.

Regardless of quarterly or even annual results, Estée Lauder Companies’ executives are looking forward. At a Deutsche Bank presentation last month, Freda noted that during the pandemic, Estée Lauder continued to invest for the future by improving its data analytics department, opening the Shanghai Innovation Center, expanding its Tokyo manufacturing capabilities and acquiring Deciem.

Freda said that prestige beauty fundamentals are intact. The global middle class as a percentage of the population grew from 27% in 2009 to 47% in 2019 and will reach 61% by 2030. Those gains have help per capita spending on prestige beauty rise 9% in the US, 39% in India, 52% in Brazil and 185% in China from 2015 to 2020.

Sales: 14.8 Billion

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.

Sales: 13.6 Billion

The Estée Lauder Company (ELC) might just be the best-run family beauty business in the world. More than 20 years ago, ELC opened its books, went public and showed the world its fortitude and makeup. When ELC debuted on the NYSE, it had a market cap of about $5 billion; today its market cap is more than $60 billion. The family business continues to thrive even as the family has changed with the times, installing outsiders who have proved to be masters in their craft. For example, CEO Fabrizio Freda made Forbes’ List of Most Reputable CEOs in the World for the second year in a row. Forbes notes that years ago, Freda implemented a reverse-mentoring program to promote perpetual learning and the hiring of more young people. According to one estimate, millennials now account for 67% of the Estée Lauder workforce. The goal, according to Freda, is to combine the entrepreneurial spirit of a startup with the discipline of a well-financed, structured organization.
The strategy is working. Through Q3 of fiscal 2019, sales were up 9% to $11.2 billion, buoyed by an 18% increase in skin care sales, while makeup sales were up 4% and hair care sales rose 3%. Meanwhile sales of fragrances declined 2%.

ELC executives expect demand for prestige cosmetics will continue to climb 7% this year, and are confident that the company can outpace market growth. That said, there are several risks that could temper results during the next several months:

  • Continued softness of brick and mortar retail in the US and UK, which is impacting overall sales, especially makeup;
  • Brexit in the UK; and
  • Tariffs in China, along with moderating sales in China and travel retail.

Still, the world is rushing toward luxury and Estée Lauder has the portfolio to appeal to these consumers. Deloitte has ranked the company as the world’s No. 2 luxury goods maker, trailing only LVMH Moët Hennessy-Louis Vuitton.

In fiscal 2018, makeup accounted for 42% of sales, followed by skin care, 39%; fragrance, 13%; hair care, 5%; and other, 1%. Skin care sales rose more than 23% last year. The company credited this global resurgence to the enduring strength of hero product lines such as Advanced Night Repair from Estée Lauder and Crème de La Mer from La Mer, as well as recent product launches and targeted expanded consumer reach. The launches of Advanced Night Repair Eye Concentrate Matrix and Perfectionist Pro Rapid Firm + Lift Treatment from Estée Lauder were particularly successful in China and certain travel retail locations in Asia/Pacific. During fiscal 2018, ELC continued to expand the Crème de La Mer and Genaissance de la Mer product lines from La Mer through the introduction of The Moisturizing Matte Lotion, The Moisturizing Cool Gel Creme, The Eye & Expression Cream and The Infused Lotion

Global makeup sales rose, too, but at a slower pace. By region, Europe, the Middle East & Africa accounted for 41% of sales; the Americas accounted for nearly 37% of sales and Asia/Pacific, 22%.
As of June 30, 2018, Estée Lauder operated approximately 1,500 freestanding stores. Most are operated under a single brand name, such as MAC, Jo Malone London, Aveda or Origins. There are also more than 650 company-branded freestanding stores around the world operated by authorized third parties, primarily in Europe, the Middle East and Africa.

Sales: 11.8 Billion

Sales: $11.8 billion.

Corporate sales rose 5% in fiscal 2017, with every product category and region reporting gains.

Skin care sales increased 1.4% to $4.5 billion driven by Advanced Night Repair from Estée Lauder and Créme de La Mer from LaMer. Glamglow provided a sales lift too, and in Q4, ELC acquired a minority interest in Deciem, a skin care brand.

Makeup sales grew 6.5% to $5 billion on the strength of the Estée Lauder brand and the acquisitions of Too Faced and Becca.

Fragrance sales rose 5.2% to $1.6 billion due primarily to increased sales of Jo Malone London and Tom Ford fragrances.

Hair care sales were up 3.1% to $539 million as ELC expands beyond salons.

By region, sales in the Americas rose 3.3% to $4.8 billion, sales in Europe, the Middle East and Africa increased 5.2% to $4.6 billion and sales in Asia/Pacific were up 3.2% to $2.3 billion. In North America, where brick and mortar continues to take on water, ELC is boosting its presence online. In Latin America, the company continued to launch brands, expand social media integration and convinced consumers to trade up from mass. Similarly, in Europe, the Middle East and Africa, ELC expanded its social media and digital presence. In Asia/Pacific, specifically in China, ELC said it is leveraging its portfolio to take advantage of growth from makeup and fragrance categories.

And where in the world can consumers buy Aramis, Bobbi Brown, Clinique and the rest of ELC’s brands? Department stores are slipping, but still account for 42% of sales; followed by travel retail, 14%; specialty-multi and freestanding stores, 11% each; online and “other,” 7%; perfumeries, 5% and salon/spa, 3%.

Whether you’re talking geography, product mix or category, it’s all clicking for Estée Lauder in fiscal 2018, too. ELC’s third quarter sales jumped 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 chief executive officer. “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.”

The results were impressive through nine months as well. Corporate sales rose more than 16% to almost $10.4 billion. Nearly every product category contributed to the gains: skin care sales rose 22% to $4.21 billion; makeup sales improved 14% to $4.27 billion; fragrance sales increased 11% to $1.4 billion and hair care sales rose 5% to $419 million. Only the “other” category, slipped through nine months, falling from $60 million to $55 million, according to ELC.

Sales: 11.3 Billion

Sales: $11.3 billion.

CEO Fabrizio Freda proudly notes that Estée Lauder is the only large company solely focused on prestige beauty. As the middle-class grows around the world, he reasons, Estée Lauder and its 25 brands will be around to grow with them. The company estimates that emerging markets may account for a quarter of prestige beauty sales in 10 year’s time.

Last year, Estée Lauder’s online sales topped $1 billion for the first time, up from $400 million in 2012. Also, last year, free-standing stores accounted for 10% of sales. In a nod to the Pacific Rim’s influence on beauty, the company invested in Have & Be Co., Ltd., the South Korean company behind Dr. Jart+ and Do The Right Thing. In another nod to the future, EL is already bracing for Generation Z, the first consumer group to grow up with social media. These consumers, born after 1998, already account for more than 25% of the global population, and account for 50% increase in the multiracial youth population since 2000, according to Estée Lauder.

By region, the Americas accounted for 42% of sales, followed by EMEA, 39% and Asia-Pacific 19%. Sales in the Americas improved 5% to $4.7 billion, thanks to gains in sales of Clinique, Smashbox, Estée Lauder and MAC makeup, La Mer skin care, Aveda hair care, and Tom Ford Jo Malone London fragrances. EMEA sales increased 12% to nearly $4.4 billion. Gains in travel retail, the UK and the Middle East were credited for the increase. Sales in Asia-Pacific fell less than 1% to nearly $2.2 billion. Forex woes and weakness in Hong Kong, Thailand Malaysia and Korea were blamed. These results offset gains in The Philippines and Japan.

By category makeup sales rose more than 9% to over $4.7 billion, thanks to the success of Clinique, Smashbox, Tom Ford and Estée Lauder brands. Skin care sales fell less than 1% last year to over $4.4 billion. The decline was due to lower sales of Estée Lauder and Clinique due to lower sales in Asia/Pacific, particularly Hong Kong. On the plus side, La Mer and Origins provided a lift. Fragrance sales increased nearly 5% to almost $1.5 billion. The popularity of Tom Ford and Jo Malone London fragrances were credited for the gain along with the acquisition of By Kilian and the 2015 purchases of Le Labo and Editions de Parfums Frédéric Malle. Hair care sales increased 4% to $554 million on the strength of Aveda and the introduction of products like Invati Men and Shampure dry shampoo.

About a year ago, Estée Lauder unveiled its Leading Beauty Forward (LBF) initiative which is designed to enhance the company’s go-to-market capabilities, reinforce its leadership in global prestige beauty and continue creating sustainable value. In effect through 2021, the program is expected to reduce the workforce by as many as 1,200. LBF is expected to cost $600-700 million, but result in annual savings of $200-300 million.

In November, the company purchased Becca for an undisclosed amount. The next month, Estée Lauder paid $1.5 billion to acquire Too Faced, a hefty price tag for a company with sales of $220 million last year, according to industry estimates.

For the nine months, ended March 31, 2017, sales topped $8.9 billion and earnings were flat at a little over $1 billion. Makeup sales rose 1% to $3.7 billion, skin care sales increased about 1% to $3.4 billion; fragrance sales jumped 10% to nearly $1.3 billion; hair care sales fell about 3% to $399 million and “other” rose 3% to $60 million. Lauder noted that sales grew in every region. Skin care got a lift from La Mer as well as from the acquisitions of Becca and Too Faced. Makeup sales rose on the strength of Tom Ford, Estée Lauder and Smashbox sales, while Jo Malone London lifted fragrance sales. The decline in hair care was blamed on a difficult comparison to the prior year’s results, which rose due to new product introductions.

By region, North American sales increased 1% to more than $3.64 billion. The acquisitions of By Kilian, Becca and Too Faced led the way, as well as continued popularity of Tom Ford, Jo Malone London, Smashbox and La Mer, travel retail gains and higher sales in Russia propelled Europe, the Middle East & Africa sales higher by 5% to nearly $3.5 billion. Tom Ford, Jo Malone London and La Mer were all credited with helping to lift sales. On the flip side, the Middle East and the UK were a drag on results. Sales in Asia-Pacific increased 6% to more than $1.8 billion due to gains in China, Korea and Japan. China results benefitted from increases in online sales. Tom Ford, Jo Malone London and MAC boosted sales in Japan, while MAC, La Mer, Jo Malone London and Tom Ford lifted results in Korea.

Sales: 10.7 Billion

Sales: $10.7 billion for the year ended June 30, 2015.

One of Estée Lauder’s goals is to stay ahead of the competition; if the prestige beauty market is growing, say, 4-5% a year for the next few years, then Lauder is gunning for 6-8% top line growth. That goal and others like have enabled Lauder to grow to nearly twice the size of its nearest competitor. But by that measure, 2015 was a disappointing year for the company, as corporate sales fell nearly 2% in fiscal 2015—in contrast, prestige beauty sales rose 8% in Europe, 14% in North America and 26% in South America, according to NPD Group data.

The decline was due, in large part, to disappointing skin care sales, which fell 6% to $4.4 billion. The company blamed the decline on lower sales of Estée Lauder and Clinique products, which were partially offset by gains at LaMer. Fragrance sales fell as well, dipping 1% to $1.4 billion, but that decline was blamed entirely on currency fluctuation. The good news? Makeup sales rose 2% to $4.3 billion driven by high demand for lipstick as well as the ongoing strength of the Tom Ford and Smashbox brands. Hair care sales increased 3% to $530 million.

Despite the overall sales decline, company executives are confident about the future, noting that global prestige beauty trends will be shaped by two demographic groups—Millennials (15 to 35) and Ageless Consumers (50+). Estée Lauder, they argue, has the brands and the formulas to appeal to both age groups.

By product category, skin care accounted for 42% of sales, followed closely by makeup (40%), fragrance (13%) and hair care (5%). By region, the Americas accounted for 42% of sales, with Europe the Middle East and Africa at 38% and Asia/Pacific 20%.

For the nine months ended March 31, sales rose 4% to $8.6 billion and net earnings rose 9% to more than $1 billion. Skin care was the only category to slip through the first three quarters of fiscal 2016. But even that decline was minimal as sales dipped less than 1% to $3.4 billion. Meanwhile, makeup sales surged nearly 9% to more than $3.5 billion, fragrance sales gained 7% to $1.1 billion and hair care sales rose 5% to $410 million.

Those results are good, but they aren’t strong enough to stop Estée Lauder from implementing Leading Beauty Forward, a cost-saving plan that calls for a 2.5% cut in staff, or about 900-1,200 positions. Leading Beauty Forward is expected to reduce costs, reduce the company’s brand and restructure corporate functions. At the same time, the company will invest in new products, social media, communications and other forms of advertising. The initiative is expected to boost sales anywhere from $200-300 million before taxes.

Last month, Aveda rolled out Tulasara advanced performance skin care featuring products, rituals and spa treatments. In Sanskrit, Tulasara means moving toward balance, and is inspired by Ayurveda.

Sales: 10.9 Billion

Sales: $10.9 billion for the year ended June 30, 2014.

The consumer is changing. How and where she buys her handbags, clothing and cosmetics are undergoing an upheaval, and no one understands the luxury consumer better than Estée Lauder. In fact, more than a decade ago, then-chairman Leonard A. Lauder warned retailers to get their act together, improve their stores, improve their mix and improve their attitudes toward consumers. Rather than take his advice, department store execs stuck their heads in the sand and now they’re being run over by online sales and subscription services.

In the past few years, Estée Lauder has expanded its multi-pronged digital presence encompassing e-commerce, m-commerce and prestige salon channels. In fiscal 2014, the company rolled out the final portion of its global Strategic Modernization Initiative that updated all systems to create more common and efficient ways of working together.

And it’s working. In 2014, Estée Lauder maintained its No. 1 position in the global prestige segment with a 14.8% share. Company execs note that Estée Lauder has grown three percentage points faster than the global prestige beauty segment overall and is nearly two times larger than the No. 3 competitor overall and is two times larger than the No. 2 competitor in global prestige makeup. Furthermore, Estée Lauder is the No. 1 player in several key markets around the world, including the US, UK, China, Brazil, Middle East and Africa.

In fiscal 2014, sales increased 8% to $10.9 billion and gains were recorded across all categories and geographies. Skin care sales increased 7% to $4.7 billion, products and brands that provided a lift included Advanced Night Repair Synchronized Recovery Complex II and Micro Essence Skin Activating Treatment Lotion from Estée Lauder and Clinique’s Dramatically Different Moisturizing Lotion + and reformulated Repairwear Laser Focus. Also providing a lift was the La Mer brand and Estée Lauder’s Nutritious line of products.

Makeup sales rose 9% to $4.2 billion on the strength of Lauder’s makeup artist brands, higher sales of Smashbox and the debut of All About Shadow from Clinique. On the downside, sales slipped for Chubby Stick Balm and High Impact Lip Color from Clinique.
Fragrance sales, too, gained 9% to $1.4 billion, thanks to the launch of Estée Lauder Modern Muse.

Sales: 10.1 Billion

Sales: $10.1 billion. Net income: $1.0 billion, for the year ended June 30, 2013.

Estée Lauder’s been leading the US and global prestige beauty industry for decades. It holds a 15% share of the prestige beauty segment and the company intends to stay in front with a plan to grow sales equal to or better than 1 percentage point a year. Strategic acquisitions are expected to add 1 percentage point to growth over three years and increase operating margin by at least 50 basis points a year.

To get there, according to CEO Fabrizio Freda, the company will generate diversified growth ahead of the industry, enjoy continued cost leverage, capitalize on its creativity, reinvest in growth drivers, maintain a strong pricing/mix ratio and continue to reap the benefits that come from a strong balance sheet.

“We are extremely well positioned,” said Freda at a recent meeting with analysts. “Our success will continue for the long-term.”
He’s bullish on the future because of several key drivers that are shaping the global beauty business:

  • An aging population that’s looking for anti-aging products;
  • More women entering the middle class around the world who have increasing disposable income;
  • A trend of trading up from mass; and
  • Strong competition in the industry.

“We are good at building brands, from entry prestige like Clinique and MAC to high-end prestige like La Mer and Bobbi Brown,” explained Freda. “We are well-balanced in breadth and text in portfolio to reduce volatility.”

Fabrizio told attendees at the recent Sanford Bernstein Conference that China will continue to expand at a double-digit rate where Estée Lauder has extremely high name recognition, but he added that other emerging markets are growing even faster and offer even more opportunity. For example, Lauder’s share of the lucrative global travel business is soaring as the number of travelers from Asia expands, many of who are hungry for skin care and color cosmetics, rather than fragrances, which often account for the bulk of duty-free sales in the west.

In addition, emerging opportunities in developed markets; i.e., the rising ethnic population in countries such as the UK, provide another growth opportunity.

“We are the leader in prestige makeup and No. 2 in skin care. Nobody else has as comprehensive a portfolio,” noted Fabrizio. “We expect to grow 6-8% a year. We’ve grown 50% since 2009 and are much more profitable. Our superior sales gains come from multiple and different growth engines. One-third of our brands is growing double digits, so the others just have to grow with the market to achieve our objectives.”

The company certainly achieved many of those objectives in fiscal 2013, as sales rose 5% and topped $10 billion for the first time. International sales accounted for 63% of sales. Sales in the Americas increased 5% to $4.3 billion, driven by makeup artist brand gains in the US and expanded distribution in Canada. The company also credited its “high touch” retail concepts for the gain in sales last year.

Sales in Europe, the Middle East and Africa increased 4% to more than $3.7 billion, due to gains in travel retail and strong results in the UK and Middle East, which were partially offset by weakness in Spain, Russia, Switzerland and the Balkans.

Asia/Pacific sales rose 5% to more than $2.1 billion, thanks to gains in China, which were up on expanded distribution.

By product category, skin care sales rose 6% to more than $4.4 billion, driven by the introduction of products such as Perfectionist CP+R, Advanced Time Zone, Advanced Night Repair Eye Serum Infusion and Optimizer, all from Estée Lauder, and the launch of La Mer’s The Moisturizing Soft Cream and Clinique’s Even Better Eyes Dark Circle Corrector.

Makeup sales increased 5% to more than $3.8 billion, nearly all of it due to the success of the company’s makeup artist brands. Also providing a lift were launches of High Impact Extreme Volume Mascara and Chubby Stick Intense from Clinique and
PureColor Vivid Shine Lipstick from Estée Lauder.

Fragrance sales rose 3% to $1.3 billion, thanks to the introduction of Zegna Uomo, DKNY Be Delicious So Intense, Tommy Hilfiger Freedom Men and Coach Love, along with the continued success of Jo Malone and Tom Ford fragrances.

For the nine months ended March 31, 2014, sales rose 6% to more than $8.2 billion. Sales were up in every geographic region product category. For the year, Estée Lauder expects sales to rise 6-7%, while the global prestige beauty category will expand 3-4%.

Sales: 9.7 Billion

Sales: $9.7 billion. Net income: $857 million, for the year ended June 30, 2012.

Evelyn Lauder has passed, Leonard Lauder may have stepped aside, but the Estée Lauder success story continues no matter who is at the helm. Late last year, the company announced an “organizational evolution” that expanded its number of group presidents, from two to four. The move also called for further realignment of brands to leverage additional innovations and strategic synergies. Specifically, Thia Breen has been named to the new position of group president North America. She oversees both the US and Canadian businesses. Lynne Greene has been named to the new position of group president, continuing to oversee the Clinique, Origins and Ojon global brands, with the addition of the Aveda and Darphin brands. Green also joins ELC’s Investment and Development Committee (IDC) to help guide global M&A strategy.

Breen and Greene will continue to report to Fabrizio Freda.

The moves come at a time when Estée Lauder is firing on all cylinders. For the third quarter of fiscal 2013, sales rose 2% to more than $2.2 billion and earnings rose 37% to nearly $179 million. CEO Freda acknowledged that tough conditions in Southern Europe and Korea were a drag on results, but he is confident that Estée Lauder will post full year record results when it reports fiscal 2013 results later this month.

For the nine months, sales increased 4% to nearly $7.8 billion and net income increased 15% to almost $928 million. The company expected top-line growth of 6% in fiscal Q4, down a bit from its prior 6-7% guidance. In an interview in May, Freda blamed the diminished outlook on continued sluggishness in Korea and Southern Europe. In addition, he said that while US growth remains solid, it has slowed during the past year. The same was true of China.

Last month, Michael O’Hare was appointed executive vice president, global human resources. He assumes his new position on September 30, 2013. O’Hare will succeed Amy DiGeso, who will retire after nearly a decade of leading the global human resources function at Estée Lauder. Prior to this appointment, O’Hare was with Heineken NV.

The company posted record results in fiscal 2012, as sales rose 10% last year and net earnings jumped 22%. It marked the third year in a row that Estée Lauder’s results had outpaced the overall beauty industry. By distribution channel, North American department stores and international department stores each accounted for 27% of sales, followed by perfumeries (13%), travel retail (11%), retail stores (10%), other (8%) and salon/spas (4%).

By product category, skin care sales rose 14% to more than $4.2 billion, driven by the successful introductions of products like Turnaround Overnight Radiance Moisturizer, Moisture Surge Intense and Repairwear Uplifting Firming crème from Clinique. Also providing a lift were higher sales of Idealist Even Skintone Illuminator, Advanced Night Repair Synchronized Recovery Complex and “various products” from La Mer and Origins, according to the company.

Makeup sales increased 10% to nearly $3.7 billion due, primarily, to the success of the makeup artist brands; i.e., Bobbi Brown and MAC. New products such as Repairwear Laser Focus All-Smooth Makeup and Lid Smoothie Antioxidant 8-Hour Eye Colour from Clinique helped boost sales, as did the continued success of products like Even Better Makeup and Chubbystick Moisturizing Lip Colour.

Fragrance sales rose 3% to nearly $1.3 billion on the strength of two new products: Estée Lauder Sensuous Nude and DKNY Golden Delicious and higher sales from Jo Malone and Tom Ford fragrances. The gains were partially offset by lower sales of DKNY Be Delicious, Estée Lauder Sensuous, pure DKNY and Estée Lauder pleasures bloom.

Hair care sales rose 7% to about $462 million. Gains from Aveda and Bumble and Bumble were offset by lower sales of Ojon.
By region, sales in the Americas increased 8% to $4.1 billion, driven by gains in the US, as the company continues to work with retailers to strengthen its “high-touch” marketing concepts. Sales in Brazil, Chile and Canada also provided a lift.

Sales in Europe, Africa and the Middle East increased 11% to $3.6 billion, as every product category posted gains and travel retail continued to grow. Gains in the UK, Germany and Italy were offset by declines in Russia, Spain and the Balkans.

Asia/Pacific sales rose 14% to about $2 billion, as nearly every country and product category posted gains. Best performing countries were China (along with Hong Kong) and Thailand, while Japan, Korea and Australia, were challenging, according to Estée Lauder.

Next month, Estée Lauder will roll out a reformulated version of Clinique Dramatically Different moisturizer, which is the No. 1 selling skin care product in the prestige market. According to the company, a unit of Dramatically Different is sold somewhere in the world every 5.2 seconds.

Lilly Pulitzer Teams Up with Estée Lauder• Lord & Taylor, Macy’s, Dillard’s, Bloomingdales, Bon Ton and Belk were the lucky few retailers to feature a special Estée Lauder X Lilly Pulitzer “gift with purchase” collaboration for Spring/Summer 2013.

The fashion designer, known best for punchy, Palm Beach-inspired florals and prints, picked eight prints for makeup bags particular to each retailer. The kits contained Estée Lauder skin care and makeup samples and ere available with purchases of $35-$45 or more, depending on the store. Each limited edition gift set had a tag  that read “Lilly Pulitzer for Estée Lauder.” Some also featured matching makeup mirrors or travel bottles.

In other fashion design news, for the seventh consecutive season, Estée Lauder sponsored the beauty look (makeup & nails) at the Derek Lam Fall 2013 runway show at the Sean Kelly Gallery in New York City. Estée Lauder creative makeup director Tom Pecheux led a team of 13 makeup artists to create the look on 27 models—while famed manicurist Jin Soon Choi and her team polished nails.

For more on Lauder’s color cosmetics expertise, be sure to check out the August issue for our look at Fall trends in lip, nail and eye color products.

Sales: 8.8 Billion

Sales: $8.8 billion. Net income: $700 million for the year ended June 30, 2011.

Perfectionist CP+R Wrinkle Lifting/Firming Serum.

By distribution channel, North American department stores and international department stores each accounted for 27% of The Estée Lauder Companies’ total sales. Perfumeries were next at 13%; followed by travel retail, 10%; retail stores and other, 9% each; and salon/spas, 5%.

By product category, skin care sales increased 15% to $3.7 billion due to successful launches of products such as Re-Nutriv Ultimate Lift Age-Correcting and Hydrationist collections, but those launches were partly offset by declining sales of Advanced Night Repair line from Estée Lauder and Cyber White EX from Clinique.

Makeup sales increased 13% to $3.3 billion on the strength of the recent launches of Pure Color eyeshadow products and Pure Color Long Lasting Lipstick from Estée Lauder and Redness Solutions Makeup from Clinique. Those gains were offset in part by lower sales of Prescriptives, Superfit Makeup from Clinique and Resilience Lift Extreme Makeup from Estée Lauder.

Fragrance sales increased 9% to $1.2 billion. The gain was attributed to launches of Estée Lauder Pleasures Bloom and Hilfiger Loud for Her as well as higher sales of Coach Poppy, pureDKNY and various Jo Malone and Tom Ford fragrances, which were partially offset by lower sales of DKNY Delicious Candy Apples, Estée Lauder Sensuous and I Am King Sean John.

By region, sales in the Americas rose 10% to nearly $3.8 billion, due to a strengthening retail outlook in the US and Canada as well as gains in Brazil.

Sales in Europe, the Middle East and Africa rose 14% to $3.2 billion due to growth from the travel retail business, as well as the UK, Russia, the Middle East, South Africa and France.

Finally, net sales in Asia/Pacific increased 17% to more than $1.7 billion. Much of the increase was due to higher skin care sales in China, Hong Kong, Korea and Taiwan, but those gains were tempered by difficult economic conditions in Australia and Japan, according to Lauder.

The gains continued into fiscal 2012. For the nine months ended March 31, 2012, sales rose 11% to more than $7.4 billion. Skin care sales increased 16% to $3.2 billion; makeup sales rose 9% nearly $2.8 billion; fragrance sales rose 1% to just over $1 billion and hair care sales increased 6% to $335 million.

Limited edition Mad Men color cosmetics collection.

“From the US, our underlying business trend is really strong. Our US business is very strong, and we believe we continue to be very, very solid,” noted Fabrizio Freda, president and CEO. He pointed out that in prestige department and beauty specialty stores in the US tracked by NPD, Estée Lauder gained an impressive 1.6% share in skin care, led by Clinique, Estée Lauder, and La Mer.

“Our skin care lineup is so powerful that in the quarter our brands had eight of the top 10 SKUs and 20 of the top 25 products,” he told analysts in a Q3 earnings call. “Importantly, our skin care sales in these channels expanded 23% at retail in this recent period over the same quarter last year. Estée Lauder, in particular, had great results, with its skin care business rising 21% retail in the United States.”

Freda also announced Estée Lauder will streamline its manufacturing operation and create a state-of-the-art facility at its Melville, NY location for fragrance filling and skin care. During the next year, Estée Lauder will transition fragrance filling to Melville from Oakland, NJ, and close the Oakland plant. To make room for the manufacturing expansion, the company is relocating distribution operations from Melville to its North America hub in Pennsylvania, which will enable EL to better serve its retailers by centralizing our distribution.

Secondly, Estée Lauder will to continue to increase ad spending to build its momentum in fiscal year 2013. For the full year, incremental advertising spending was expected to exceed $275 million. EL is funding the additional advertising spending through higher sales and by reducing promotions and non-added value cost. In fact, Freda credits increased advertising for much of the company’s double-digit gains during the past two years.

“As we approach the three-year mark of our strategic journey, we have complete confidence in the soundness of our vision and our ability to execute with excellence,” noted Freda. “Our goals are to ensure that we anticipate consumer desires; build upon our leadership role in global prestige beauty; and deliver sustainable, profitable growth to stockholders.”



Sales: 7.7 Billion

Sales: $7.7 billion. Net income: $478 million for the year ended June 30, 2010.

Estée Lauder is benefitting from a strong product lineup and pent up consumer demand for prestige products, including cosmetics. For the fiscal third quarter ended March 31, 2011, sales jumped 16% to $2.1 billion and net earnings more than doubled to nearly $125 million.

For the nine months, sales rose 13% to more than $6.7 billion and net earnings surged 44% to over $660 million.

“Our results for the quarter and year to date continue to validate our strategic direction,” said Fabrizio Freda, president and chief executive officer. “Our focus on building enduring brand equities and on serving the global demand for prestige quality products and high-touch services is clearly resonating with consumers.”

Through nine months, skin care sales rose 15% to $2.8 billion, makeup sales increased 14% to more than $2.5 billion, fragrance sales were up 10% to $1 billion, hair care sales rose 4% to $316 million and “other” fell 1% to less than $46 million.

With its fiscal year ending June 30, 2011, company executives were confident that a significant increase in global ad spending on new initiatives and product launches would increase sales between 10-11%. It’s no surprise that EL executives expect skin care and makeup to be the leading sales growth categories, followed by fragrance and hair care. Finally, geographic region net sales growth in constant currency was expected to be led by Europe, the Middle East & Africa, followed by the Americas and Asia/Pacific.

A Look Back

In fiscal 2010, sales rose 6% to nearly $7.8 billion and net income moreIn fiscal 2010, sales rose 6% to nearly $7.8 billion and net income more than doubled to $478 million. International operations accounted for 62% of sales. By distribution channel, international department stores accounted for 28% of sales, followed by US department stores (27%), perfumeries (13%), retail stores, travel retail and “other” (9% each), and salons/spas (5%). By product category, skin care accounted for about 41% of sales, followed by makeup (38%), fragrance (14%), hair care (5%) and other (<1%).

Skin care sales rose 12% to more than $3.2 billion, driven by growing demand for anti-aging products such as Lauder’s Advanced Night Repair Synchronized Recovery Complex, Advanced Night Repair Eye Synchronized Complex and Hydrationist Maximum Moisture Créme and Lotion.

Makeup sales improved 5% to nearly $3 billion, propelled by makeup artist brand sales outside the US. Sales were helped along by the launch of Clinique’s Even Better Makeup SPF15 and Superbalanced Powder Makeup SPF15, as well as Estée Lauder’s Resilience Lift Extreme Radiant Lifting Makeup SPF15 and Double Wear Foundation.

Fragrance sales fell 1% to about $1.1 billion, due to lower sales of designer fragrances such as DKNY Delicious Night, Hilfiger Men, Sean John Unforgivable Women, Sean John Unforgivable and DKNY Men.

Finally, hair care sales rose 3% in fiscal 2010 to nearly $414 million. Sales rose, in part, to the launch of Aveda’s Smooth Infusion Glossing Straightener and Control Force.

By region, sales in the Americas rose 1% to more than $3.4 billion. Sales in Europe, the Middle East & Africa increased 9% to more than $2.8 billion; and sales in Asia/Pacific rose 16% to more than $1.5 billion.

E-commerce sales rose 23% last year.

Estée Lauder went a ways in cutting costs last year, too, by aligning its regional operations in order to effectively work together. Within its largest region, the Americas, the company created the North American affiliate business unit to enable brand managers to share and leverage knowledge and insights, especially at the retail level.The unit helps reduce duplication, improve trade relations and establish a single point of contact with retail partners.

Sales: 7.3 Billion

Sales: $7.3 billion. Net income: $218 million, for the year ended June 30, 2009

Naked Beauty is the new Summer collection from Smashbox Cosmetics.

Prestige beauty companies such as Estée Lauder had a tough go of it for the 12 months ended June 30, 2009. The U.S. was in the throes of a deep recession and consumers were in no mood to spend in discount stores, let alone department stores. With consumer sentiment so pessimistic, it was no surprise that Lauder’s sales fell 7% last year, while net income tumbled 54%.

By segment, skin care sales fell 4% to $2.88 billion; makeup sales fell 6% to $2.83 billion; fragrance sales declined 20% to $1.15 billion and hair care sales fell 6% to $402 million. By region, North American sales dropped 8% to $3.42 billion and Europe, the Middle East and Africa’s sales fell 13% to $2.61 billion. Only the Asia/Pacific region posted a gain, rising 9% to nearly $1.3 billion.

Spending Gets Slashed
It was only by reducing planned spending by $250 million that Lauder remained profitable. Furthermore, the company implemented salary and hiring freezes and made the decision to reduce its workforce by 6% by 2011. At the same time, the firm cut the number of SKUs it carries, focusing on better aligning its supply chain with the brands and regions, that should enable Lauder to achieve greater cost and time efficiencies.

The most prominent cost-cutting move was the discontinuation of the Prescriptives line in January.

So much for the cuts. To boost sales, the company said it would shift the category mix toward higher margin areas with greater global potential; i.e., skin care. Lauder executives are particularly upbeat about their skin care potential in Asia/Pacific, and are determined to grow share in emerging markets such as China, Russia, the Middle East and Eastern Europe. In mature markets such as the U.S. and Western Europe, the company is focused on growth in large, image-building cities.

In fiscal 2009, 59% of sales came from international markets, compared to 41% in the U.S. By distribution channel, North American department stores accounted for 30% of sales, followed by international department stores (27%), perfumeries (15%), retail stores (9%), travel retail (7%), other (8%) and salons/spas (4%).

Looking Ahead
To better integrate its brands, Estée Lauder organized them into four clusters according to channel and consumer segmentation (see Major Products), which will enable the brands to draw upon their strengths and share knowledge.

Aside from reorganization and cost reduction, fiscal 2010 represents the first full year of Lauder’s four-year strategy, which includes:
• Gain share by growing sales at least one percent ahead of global prestige beauty annually;
• Derive more than 60% of sales from outside the U.S.;
• Strive for annual improvement in operating margin, with a goal of 12 to 13% by fiscal 2013;
• Create a substantial increase in return on invested capital, reaching 19 to 20% by fiscal 2013; and
• Reduce inventory days 15 to 20%, to 145 to 150 days, by the end of fiscal 2013.

So, what impact did the new strategy have on sales? For the third quarter ended March 31, 2010, sales rose 10% to $1.86 billion, and net earnings more than doubled to $57.5 million. The company posted across-the-board sales gains in its geographic regions and major product categories. Strong sales growth came from the company’s international businesses, particularly, travel retail and Asia/Pacific. There were also sales gains in the Americas. These results reflect solid increases from higher-margin product launches and the positive effect of foreign currency translation.

For the nine months ended March 31, 2010, the company reported a 6% increase in net sales to $5.96 billion. Growth in Asia/Pacific and Europe, the Middle East and Africa, more than offset slightly lower sales in the Americas. Sales grew in the company’s skin care, makeup and hair care categories, which more than offset declines in fragrance.

“Our success is driven by a well-executed strategy and we are very pleased with our accomplishments over the past nine months,” said Fabrizio Freda, president and chief executive officer. “The progress we’ve made illustrates our ability to move the company forward and create value. We are a growth company, with a sharp focus on increasing our top line where we can produce the highest returns, while, at the same time, remaining vigilant in our cost savings and financial discipline, with the goal of increased and sustainable profitability.”

Sales: 7.9 Billion

Sales: $7.9 billion. Net income: $473 million for the year ended June 30, 2008.

Flowerific, the newest fragrance from Flirt!, an Estée Lauder brand.

A new era commenced this month at Estée Lauder. Fabrizio Freda is the president and chief executive officer, and will be responsible for developing the company’s overall vision, strategy, financial objectives and investment priorities. William P. Lauder is executive chairman and chairman of the board and Leonard Lauder is now chairman emeritus.

One of the key focuses during Mr. Freda’s leadership will be driving out costs—a lot of them. In fact, the goal is to reduce costs by $450-550 million, and one way to accomplish it is via attrition. Estée Lauder plans to reduce its workforce by 2000 employees (6%) during the next two years. In early June, Lauder began letting people go. The move is expected to boost operating margin from 7-8% to 12-13% in the short term and as much as 15% in the future.

At the same time, however, the company is focused on top-line growth. Mr. Freda expects Estée Lauder to grow 1% ahead of the market. To get there, the brands have been reorganized by channel and consumer segmentation and executive leadership has been reworked accordingly. The overall goal is to take Lauder’s best in North America to the rest of the world, while at the same time taking what works in Asia, Europe, etc. and bringing them to North America.

The newest anti-aging serum from Estée Lauder.

The four-year strategy prioritizes resources on the company’s most promising opportunities, including its core brands, most profitable categories, high-growth distribution channels, expanding markets, and important countries and regions. The strategy’s other critical elements are designed to reduce expenses, integrate brands and regions to improve efficiency and leverage scale, while turning around underperforming brands.

Still, the company will also make further investments in consumer knowledge and global research and development to drive innovation and creativity, which have been hallmarks of its 63-year history, according to a company spokesperson.

As executive chairman, Mr. Lauder will partner with Mr. Freda to create significant long-term shareholder value for the company’s investors. Together they will help drive and support the company’s brand and global expansion opportunities in addition to his day-to-day management responsibilities.

These moves come at a time when Estée Lauder, like every other corporation, is feeling the effects of the global recession. Third quarter sales declined 10% to $1.7 billion and net earnings plunged 70% to $27 million.

For the nine months ended March 31, 2009, the company reported a 4% decline in sales to $5.64 billion. Net earnings fell 33% to $236.3 million.

In contrast, in fiscal 2008, Estée Lauder reported a 12% increase in sales to $7.04 billion. Those gains were driven by skin care, which rose 15.2% to $2.99 billion. Makeup sales rose 10.6% to $3 billion; fragrance sales increased 9.4% to $1.4 billion and hair care sales were up 13.3% to $427 million.

By region, sales in the Americas rose 4.2% to $3.7 billion; sales in the Europe, the Middle East & Africa region rose 20.6% to $3 billion and sales in Asia/Pacific rose 21.3% to nearly $1.2 billion.

Skin care sales growth was greatest in the Asia/Pacific region, due to new whitening products and higher sales in Greater China. The company also credited the category’s growth to new product launches such as Cyber White EX by Estée Lauder and Redness Solutions from Clinique.

Double-digit gains in makeup sales were driven by makeup artist brands, which contributed more than 65% of incremental sales.

Fragrance sales growth was strongest in Europe. Products that contributed to the increase included Sean John Unforgivable Woman, Dreaming Tommy Hilfiger, DKNY Be Delicious and Estée Lauder Pure White Linen Light Breeze.

Hair care sales were up, thanks to the acquisition of Ojon and higher sales from Aveda and Bumble and Bumble.

Sales: 7 Billion

Sales: $7.0 billion. Net income: $448 million for the year ended June 30, 2007.

There were gains across the board for Estée Lauder in 2007. For the fiscal year ended June 30, net sales jumped 9% to $7.04 billion. Operating income increased 21% to $749.9 million. Net earnings also jumped 38% to $448.7 million. Gross profit was $5.2 billion—up 10% from $4.7 billion in 2006.

By category, net sales of skin care products increased 8% to $2.6 billion. According to the company, most of this growth was fueled by new product launches, which made their most significant impact in the Europe, Middle East and Africa and Asia/Pacific regions. The recent launches of Advanced Night Repair Concentrate Recovery Boosting Treatment and Idealist Refinisher from Estée Lauder and Repairwear Lift Firming Night Cream, Continuous Rescue Antioxidant Moisturizer, All About Eyes Rich and Repair-wear Contour Firming Formula from Clinique contributed incremental sales of approximately $95 million, combined. Net sales increases from the fast-growing La Mer brand, Resilience Lift Extreme Ultra Firming products and other existing Advanced Night Repair products from Estée Lauder, along with products in the Clinique 3-Step Skin Care System and Superdefense from Clinique, totaled approximately $97 million.

Makeup net sales increased 8% to $2.7 billion, reflecting growth from the company’s makeup artist brands of approximately $191 million.

Net sales of fragrance products increased 8%, to $1.3 billion, primarily driven by incremental international sales from newer fragrance offerings. DKNY Red Delicious, Pure White Linen from Estée Lauder, Sean John Unforgivable, DKNY Red Delicious Men and Donna Karan Gold collectively contributed approximately $128 million to the category.

Hair care net sales increased 18% to $377.1 million, primarily due to sales growth from Aveda and Bumble and bumble products. Aveda net sales increases were primarily due to sales of professional color products, the recent launch of Be Curly shampoo and conditioner and the acquisition of an independent distributor. Bumble and bumble sales benefited from a new hotel amenities program, sales growth in its existing salon distribution and new points of distribution.

By way of geographic regions, net sales in the Americas increased 3% to $3.6 billion. The increase was led by growth in the U.S. of approximately $152 million from the company’s makeup artist brands, hair care business, internet distribution and the recent launch of the Unforgivable fragrance by Sean John. Net sales growth in Canada, Latin America and Mexico contributed an additional $31 million to the increase.

In Europe, the Middle East & Africa, net sales increased 16% to $2.5 billion. The growth in the region reflected higher net sales of approximately $260 million in the United Kingdom, Russia, Germany, Spain and Turkey. Net sales in the Asia/Pacific region increased 13%, to $983.2 million. The growth in this region reflected higher net sales of approximately $86 million in Korea, China, Hong Kong and Australia.

A New Leader

The most buzzworthy corporate news for the company in 2007 was the announcement of a senior management change effective this past March. Fabrizio Freda was named president and chief operating officer.

William P. Lauder will remain chief executive officer, and Daniel J. Brestle is now vice chairman and president, ELC North America. Mr. Brestle will continue to oversee the Estée Lauder, M.A.C, Prescriptives and Tom Ford Beauty brands and the BeautyBank division on a worldwide basis and will lead the company’s North American business.

The company’s current succession plan anticipates Mr. Freda becoming chief executive officer within 24 months. At such time as Mr. Freda becomes chief executive officer, it is expected that William P. Lauder would become chairman of the board and Leonard A. Lauder would become chairman emeritus and continue  as a director.

From 2001 through mid-2007, Mr. Freda was president, global snacks, of The Procter & Gamble Company (P&G). Mr. Freda held several executive positions at P&G, which he joined in 1998 after serving as director of marketing and planning for Gucci SpA.

The Brand Buzz

Estée Lauder also integrated a variety of new business strategies for many of its brands. For Estée Lauder, Aerin Lauder traveled globally to launch her Private Collection fragrance and solidify her role as a brand ambassador. And for the first time, the namesake brands uses all four spokesmodels in an ad campaign for the Sensuous fragrance launch.

Clinique launched on QVC on Feb. 17, resulting in Clinique breaking the record as the largest two-hour beauty launch in QVC’s 21-year history. The company also collaborated with Allergan to offer clinically proven skin care products that are expected to be available later this year. Beauty Bank also announced its partnership with HSN.

Fergie Joins MAC Campaign

Fergie becomes new spokesperson for the MAC Viva Glam VI campaign. The brand also rolled out successful limited-edition collections with McQueen, Fafi and Heatherette. The MAC AIDS Fund reaches a milestone and raises $100 million to help fight and raise awareness of HIV/AIDS around the world. MAC Cosmetics opened a new PRO Store concept in New York’s Flatiron District—a prototype for all future Pro Stores.

DKNY collaborated with artist Yoon Lee to commission bottle design for DKNY Be Delicious and Red Delicious Art bottles. The brand also launched the DKNY Delicious Night interactive website,, as well as a DKNY fragrance website,

Dreaming Tommy Hilfiger collaborated with Glamour Reel Docs for the launch of the interactive website. Tom Ford Beauty embarked on the first global advertising campaign to feature Tom Ford himself, creating identity and synergy with the Tom Ford portfolio, according to the company.

Bobbi Brown repackaged its Custom Beauty palettes. The brand also launched the Quinceanera program in strategic Hispanic markets and created the  Be True to Your Heart Palette in support of the Heart Truth Fashion Show and to raise awareness for heart disease.

Origins announced its “Three Pillar Strategy.” According to the company, Origins is now a “master brand with three distinct sub-brands all dedicated to offering healthy choices for every consumer.” The pillars include: Core Origins, Dr. Andrew Weil for Origins and Origins Organics. The brand also announced a long-term partnership with The Harmony Project with kick-off sponsorship of a star-studded event at The Sundance Film Festival.

For the nine months ended March 31, 2008, sales were up 11.8% to nearly $5.9 billion, but net income declined about 2% to $353.6 million

Jane Lauder Named Senior VP/GM of Origins

Jane Lauder was named senior vice president, general manager of Origins at the Estée Lauder Companies in June. Ms. Lauder will report to Jane Hertzmark Hudis, president, who overseas BeautyBank and Ojon, and who now will add Origins to her portfolio.

Ms. Lauder has been senior vice president, global marketing for Clinique since July 2006, and has been responsible for the brand’s overall strategic marketing and positioning, including developing products and expanding the brand into new channels and categories globally. According to the company, Ms. Lauder was instrumental in a number of Clinique’s recent successes, including the launches of Acne Solutions and Almost Powder Makeup, which used innovative multi-media marketing and distribution approaches, and Clinique’s February debut on QVC. As a member of Clinique’s senior management team, Ms. Lauder also helped develop a line of doctor-distributed products created in collaboration with Allergan.

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