‘Outstanding’: The Estee Lauder Companies sales up 11 percent in Q1 2020

‘Outstanding’: The Estee Lauder Companies sales up 11 percent in Q1 2020

THE WHAT? The Estee Lauder Companies has reported ‘outstanding’ financial results for the first quarter of fiscal 2020.

THE DETAILS The US prestige beauty behemoth saw net sales rise 11 percent to US$3.9 billion over the three months ended September 30, 2019. Net earnings were up 19 percent to US$595 million.

“We have started the fiscal year 2020 with terrific results. Our winning strategy based on multiple engines of growth helped us to deliver an extraordinary performance, especially in light of the volatile global environment, reflecting the agility and resiliency we have created in our business model,” said Fabrizio Freda, President and CEO.

Freda noted that the company’s four biggest brands, with annual sales of well over US$1 billion all grew globally. According to Freda, ‘this demonstrates the enduring consumer interest in established brands and their proven, desirable products’.

Category wise, skin care produced by far the best performance, growing 24 percent to reach US$1,842 million. Make-up inched up a respectable but uneventful 3 percent to US$1,443 million which fragrance, hair care and the ‘other’ category all saw sales drop (-2, -5 and -29 percent respectively).

On a regional basis, strong growth across the Asia/Pacific region propelled the region into the billion-dollar club for the first time (+24 percent to US$1,058 million), while sales in the US dwindled, dropping 6 percent to US$1,160 million. Europe, the Middle East & Africa put on 17 percent to hit a value of US$1,677 million, spurred on by strong travel retail sales, as well as double-digit growth in the Balkans, Switzerland, Russia and the Middle East.

THE WHY? Sales growth was led by excellent results from the company’s international markets, particularly China and other emerging markets as well as the skin care category, travel retail and online channels.