THE WHAT? The Estee Lauder Companies has reported net sales of US$4.85 billion for the second quarter of the current fiscal year, up 5 percent on a reported basis on the prior-year period. The US prestige beauty manufacturer also saw net earnings rise to US$873 million versus US$557 million in the three months to December 31, 2019.
THE DETAILS Ten of the firm’s brands grew, with growth at La Mer and Estee Lauder hitting the double digits and, although consumer traffic was significantly reduced as the pandemic continues to rage, online sales growth remained strong in every region and travel retail net sales were driven up in the single digits by increasing travel within the Asia/Pacific region.
Skin care sales proved robust, led by La Mer, Estee Lauder and Clinique but make-up sales continued to dwindle. Fragrance saw growth too, primarily thanks to Tom Ford Beauty, Jo Malone London, Clinique and Le Labo.
THE WHY? Fabrizio Freda, President and Chief Executive Officer said, “We are proud to have returned to growth in our second quarter, earlier than we anticipated, demonstrating the enduring success of our multiple engines of growth strategy. The powerful engines of Skin Care, Fragrance, Asia/Pacific, Travel Retail in Asia, and global Online fuelled our performance despite the increasing complexity of the pandemic.”