Estée Lauder Companies has reported a 14 percent net sales growth to $3.27 billion, a rise attributed in part to its rapid expansion in China, as well as a stellar performance in travel retail.
Skincare was the most dynamic category for the company, which rose 15 percent on a constant currency basis, boosted by brands Estée Lauder, La Mer, GLAMGLOW and Origins, while new millennial-focussed acquisitions Too Faced and BECCA helped the company’s make-up division achieve strong sales and contributed ‘approximately 4 percentage points of the reported sales growth.’
Fabrizio Freda, President and Chief Executive Officer, said, “Our online and travel retail channels and most luxury and mid-sized brands posted double-digit sales gains. In addition, we saw encouraging signs of improvement in some U.S. prestige department stores, and our targeted expansion into more specialty-multi doors to reach new consumers continued to help us gain share. Sales growth in the Estée Lauder brand continued to accelerate, generating double-digit gains in the quarter.”
Net sales in the fragrance sector was driven by luxury brands Jo Malone London, Tom Ford and Le Labo, while all geographical regions achieved sales growth, with Europe, the Middle East & Africa being helped by the strong travel retail sector, with the largest sales increase reported in Italy, the Balkans and India.