Estée Lauder Companies FY net sales increase 9 percent; decreases sales outlook due to negative impact of Russian invasion of Ukraine 

Estée Lauder Companies FY net sales increase 9 percent; decreases sales outlook due to negative impact of Russian invasion of Ukraine 

THE WHAT? The Estée Lauder Companies has reported net sales of US$17.74 billion for its fiscal year ended June 30, 2022, an increase of 9 percent from US$16.22 billion in the prior-year period.

THE DETAILS Organic net sales increased 8 percent, driven by double-digit growth in The Americas and Europe, the Middle East & Africa (EMEA) regions.

However, net sales in most of the company’s product categories and in EMEA were adversely impacted by a stronger U.S. dollar in relation to most currencies. 

Skin care net sales grew in The Americas, which was offset by a decline in the EMEA region. Net sales growth from La Mer, Clinique and Bobbi Brown was offset by a decline from Estée Lauder. 

In fragrance, net sales grew across every region and every fragrance brand, led by Jo Malone London, Tom Ford Beauty and Le Labo.

Meanwhile the make-up arm net sales increased among most brands, which was said to be be reflective of the continued recovery in western markets, increased usage occasions and easier comparisons to the prior year. The growth was led by both M·A·C and Estée Lauder.

THE WHY? ELC’s first quarter fiscal 2023 reported net sales are forecasted to decrease between 10 percent and 8 percent versus the prior-year period. 

According to the company, “This range includes the negative impacts from the termination of the Company’s license agreements for the Donna Karan New York, DKNY, Michael Kors, Tommy Hilfiger and Ermenegildo Zegna product lines effective June 30, 2022, the negative impact related to Russia and Ukraine, and the negative impact from foreign currency translation, as well as certain impacts of foreign currency transactions in key international travel retail markets.”

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