Estee Lauder Group reports excellent annual results
American beauty giant Estee Lauder announced excellent annual results Tuesday, driven by sales of skin care and makeup products rose sharply and economies. Net income stood at 856.9 million dollars while revenue increased 10% year on year to $ 9.7 billion, slightly above Wall Street forecasts.
The increase in turnover was driven by skincare, the group calls a “strategic sector”, in particular by sales of premium brands like La Mer
The make-up also posted double-digit growth, especially trademarks professional makeup (Bobbi Brown, Matchbox, etc).
Fragrance brands such as Tom Ford and Jo Malone have performed well but the market share declined in the United States. North America remains the main engine of sales, while Europe, “the group has generated solid growth despite a sluggish market”, with a double-digit growth in sales “in the Middle East, Germany, France, Italy and Turkey. ” The Asia-Pacific region’s performance was mixed with good sales in China but lower sales in Singapore and Korea, said CEO Fabrizio Freda in an investor conference.
The group also made $ 145 million in savings over the full year. Fabrizio Freda welcomed a “very strong fourth quarter (…) thanks to the good momentum continues in the U.S. as well as strong growth in China” in stores and airports. “This performance closed a record year for the company,” he added. For Deutsche Bank, “Estée Lauder has become the child king” of a cosmetics industry “rather lean times”, with “a strong geographic expansion, gains market share and restructure” to lower costs. Citi notes however that the benefits are barely above the consensus forecast and the expected leave a slowdown in sales.