EstÃ©e Lauder Group reports exceptional first-quarter results
US based beauty products giant Estée Lauder Companies has reported “outstanding” results in the quarter ended September 30, with sales up by 18% to $2.48bn against the previous corresponding period. Net earnings increased by 46% to $278.6m and the company said the strong performance was due to “solid overall business” helped by a weak US dollar. Sales in the Europe, Middle East and Africa region, which includes travel-retail, were up by 26% to $858.2m.
Estée Lauder added that sales grew double-digits in every region, including the US, and that growth was particularly strong in travel-retail and emerging markets, along with “solid gains” in several developed countries.
“The company’s travel-retail business continued to generate strong double-digit net sales growth in the quarter, resulting from successful product launches and increased distribution,” it said in a statement. “This reflects both an improvement in global airline passenger traffic, particularly in Asia, and stronger conversion of travellers into purchasers, driven by improved marketing and distribution.”
Estée Lauder president and CEO Fabrizio Freda said: “Our very strong company performance continued to be broad based, highlighted by healthy top-line growth across all categories and regions, strong bottom line growth and continued margin expansion. These results reflect the strength of our brands, the appeal of our superior product innovations and the effectiveness of our focused advertising and marketing spending. The recent economic uncertainty and financial market volatility have not significantly impacted our business.”
Estee Lauder Group brands include: Tom Ford, MAC, Clinique, La Mer, Jo Malone, Aveda. The companies licenses fragrances of: Ermenegildo Zegna, Kiton, Missoni, Coach, Michael Kors.