Asia boosts sales for Estee Lauder
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It says the higher sales in China reflected strong gains for every brand except designer fragrances. Estee Lauder, Mac, La Mer, Tom Ford and Jo Malone led the sales growth.
Sales benefitted, in part, from continued demand for makeup products, an acceleration in skincare sales and targeted expansion of consumer reach.
Hong Kong’s increased sales reflected solid domestic growth and a rise in tourism. Growth was primarily driven by Estée Lauder, La Mer and Mac.
Operating performance was lower in Japan.
Overall, the company achieved net sales of $3.27 billion, up 14 per cent on the same period last year.
Incremental sales from the company’s acquisitions of Becca and Too Faced contributed about four points of reported sales growth. Net earnings rose 45 per cent to $427 million.
“Building on the global momentum of the past fiscal year, we benefitted from continued acceleration in China, Hong Kong, travel retail and global online, strength in several developed and emerging markets in Europe, and incremental sales from Becca and Too Faced,” says president/CEO Fabrizio Freda.
“Our online and travel-retail channels and most luxury and mid-sized brands posted double-digit sales gains.”
Questions & Answers
Q.What specific product categories drove sales growth for Estee Lauder?
What specific product categories drove sales growth for Estee Lauder?
Sales growth was primarily driven by continued demand for makeup products and an acceleration in skincare sales. The company also benefited from a targeted expansion of its consumer reach in various markets.
Q.Which brands were most successful in driving Estee Lauder's overall sales?
Which brands were most successful in driving Estee Lauder's overall sales?
Estee Lauder, Mac, La Mer, Tom Ford and Jo Malone led the overall sales growth for the company. In Hong Kong specifically, Estee Lauder, La Mer and Mac were the primary drivers.
Q.How did recent acquisitions contribute to the reported sales increase?
How did recent acquisitions contribute to the reported sales increase?
The incremental sales generated from the acquisitions of Becca and Too Faced accounted for approximately four points of the reported sales growth. These new brands added to the company's overall revenue increase.
Q.Which geographical regions performed well for the company in this period?
Which geographical regions performed well for the company in this period?
The company saw continued acceleration in China and Hong Kong, alongside strong performance in travel retail and global online channels. Several developed and emerging markets in Europe also showed strength.
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