×
2 498
Fashion Jobs
HARRODS
Food Supply Manager
Permanent · LONDON
JOHN LEWIS
Loss Prevention Partner
Permanent · CAMBRIDGE
HEAD OFFICE
Cyber Security Lead – Incident Response
Permanent · BRACKNELL
HEAD OFFICE
Delivery & Operations Manager
Permanent · BRACKNELL
BOOHOO GROUP
Product Manager
Permanent · MANCHESTER
DEBENHAMS
CRM Executive
Permanent · LONDON
PRETTYLITTLETHING
Business Analyst
Permanent · MANCHESTER
PRETTYLITTLETHING
Buying Admin Assistant
Permanent · MANCHESTER
BOOHOO GROUP
Warehouse Operative - pm Shift
Permanent · WELLINGBOROUGH
BOOHOO
CRM Assistant
Permanent · MANCHESTER
BOOHOO GROUP
Product Insights Manager
Permanent · MANCHESTER
BOOHOO GROUP
Technical Delivery Manager
Permanent · MANCHESTER
BOOHOO GROUP
Business Analyst
Permanent · MANCHESTER
PRETTYLITTLETHING
Senior CRM Automation Executive
Permanent · MANCHESTER
BOOHOO GROUP
Senior Project Manager
Permanent · MANCHESTER
BOOHOO GROUP
Warehouse Team Manager - Twilight Shift
Permanent · WELLINGBOROUGH
ESTEE LAUDER
Clinique - Consultant - Boots Oracle, Reading - 11 Hours, 2 Days (Sat. Sun.) - Part Time, Permanent
Permanent · Reading
ESTEE LAUDER
Clinique - Consultant - Harrods, London - 37.5 Hours, 5 Days - Full Time, Permanent
Permanent · London
360 TALENT LONDON
Wholesale Sales Executive – Leeds – Luxury Brand
Permanent · LEEDS
HARRODS
Warehouse Operative - Nights
Permanent · THATCHAM
HEAD OFFICE
Ecommerce Operations Support Manager
Permanent · BRACKNELL
HEAD OFFICE
Information Security Threat Management Specialist
Permanent · BRACKNELL
Ads
Published
May 1, 2019
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Estée Lauder profit soars on robust Asia sales

Published
May 1, 2019

US beauty company Estée Lauder Cos Inc beat on profit in its latest quarter as it benefited from high demand for skincare products and robust sales in the Asia Pacific region.


Photo: MAC


The group, whose portfolio comprises over 25 brands including Estée Lauder, La Mer, Clinique and MAC, said on Wednesday net sales rose 11% to $3.74 billion in the three months to March 31, its fiscal third quarter. Net earnings were up 49% to $555 million.

“We delivered terrific performance in our fiscal third quarter, driven by strategic investments in our best opportunities combined with creativity and data-driven insights that fueled exciting innovations,” commented president and CEO Fabrizio Freda. “These drivers strengthened loyalty to our brands and hero franchises and attracted new consumers globally.”

The company has also reinvested the savings from its Leading Beauty Forward initiative into targeted advertisements, ramping up support for new product launches as the group tightens its focus on expanding its hero product franchises and creating "fewer but bigger" launches.  

Skincare was the top-performing category during the quarter with a 21% increase in net sales. The group recorded growth across most regions, led by brands La Mer and Estée Lauder, whose hero franchises such as Advanced Night Repair and Nutritious continued to chime with consumers.


Infographic: FashionNetwork.com



Makeup sales rose 7% in the quarter to $1.46 billion, led by demand for prestige beauty in Asia and strength in the travel retail channel. Brands that delivered the most growth were Tom Ford Beauty, Estée Lauder, La Mer and MAC, while Clinique and Smashbox reported lower sales.

Geographically, the Asia/ Pacific region was overall the strongest growth engine for the company. Net sales were up 27% to $966 million, helped by double-digit net sales growth in “virtually every major product category and channel,” the group said. The company added that it had previous factored in a slowdown due to factors including U.S. economic slowdown; trade tensions relating to China and Brexit-related uncertainty affecting consumer spend. However, it noted that no moderation in Chinese demand or softening in travel retail occurred.

“We had anticipated a gradual moderation of growth in China and travel retail starting in the quarter, which didn’t happen, and that contributed to our overachievement,” said Freda.


Infographic: FashionNetwork.com



The Europe, the Middle East and Africa region, up 20%, brought in $1.63 billion. In the US, which represents 25% of the group’s business, sales were down by 6% to $1.15 billion. Weakness in North America, where half the company’s business is in department stores and faces continuing headwinds, was in line with major market trends, Freda said in a post-earnings call.

Estée Lauder raised its full-year guidance, forecasting sales growth of 10-11% and EPS growth of 18-19%.  
 

Copyright © 2022 FashionNetwork.com All rights reserved.