BEAUTY REPORT: ESTÉE LAUDER COMPANIES
Robust global demand and double-digit TR growth drives ambitious FY 2018 goals for Estée Lauder
Beauty behemoth Estée Lauder Companies has raised its full-year sales growth forecast to 11-12% following strong final quarter results and double-digit travel retail performances in key markets. Claire Malcolm reports.
N
et sales rose by 18% to $3.37bn for the third quarter ending 31 March
2018 (+13% excluding the impact of foreign currency translation), with the company flagging particularly strong performance from its travel retail division. Estée Lauder Companies’ fiscal
year 2017 focus on pivoting its business to capture new consumers – with increased exposure to the fastest-growing prestige channels – investment into key geographies and beefing up its digital communications strategy, is clearly paying dividends. This had led to a bullish outlook for the full 2018 fiscal year. Despite the spectre of ongoing
global economic challenges affecting consumer spending in certain destinations and travel corridors – along with regulatory and tariff imposition issues – currency volatility, terrorism and other market challenges, it notes robust global demand across the group’s entire portfolio. This prompted Q3 sales growth for almost every brand. Commenting on the latest results,
President & CEO, Fabrizio Freda said: “Our company delivered another
excellent quarter in what we expect to be an outstanding fiscal year. “Many business areas that
contributed to our strong first-half results continued to thrive in the third quarter, as we generated +13%
sales growth and 17% adjusted earnings per share growth, each in constant currency. “Among our multiple growth
engines, travel retail, online and Asia were again standouts and we experienced strong momentum in other high-growth channels and markets. “Each of our three biggest brands
grew globally, with exceptional growth in Estée Lauder.” The group noted exceptional
performance in the prestige beauty segment and expects to grow to about double the industry for fiscal 2018. It is likely to benefit from loyalty
to its high-quality products, strong innovation and outreach to new target consumers and from growth
following recent acquisitions with continued emphasis on a ‘digital- first’ approach. With this finely-tuned focus
propelling the company forward, Estée Lauder Companies has raised its full-year constant currency sales growth forecast to 11-12%.
Double-digit TR growth Travel retail saw double-digit sales growth across most of the Estée Lauder Companies’-owned brands in Europe, Middle East and Africa in the final quarter. This was led by prestige stalwarts Estée Lauder, La Mer, MAC, Clinique and Tom Ford. Growth in global airport traffic,
new launch initiatives and focused consumer reach supported healthy quarter-on-quarter growth. Net sales growth benefitted in
particular from increases in Asia, where skincare represents around two-thirds of the region’s product
“Among our multiple engines of growth, travel retail, online and Asia again were standouts.”
Fabrizio Freda, President & CEO,
Net sales growth benefitted in particular from increases in Asia, where skincare represents around two-thirds of the region’s product category mix.
JUNE 2018 Estée Lauder Companies TRBUSINESS 37
Above: Travel retail notched double-digit sales growth across most of the Estée Lauder Companies’- owned brands in Europe, Middle East and Africa in the final quarter of 2017.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78
