The Estee Lauder Companies Q1 2022: net sales up an ‘outstanding’ 23 percent

The Estee Lauder Companies Q1 2022: net sales up an ‘outstanding’ 23 percent

THE WHAT? The Estee Lauder Companies hailed its first quarter results for fiscal 2022 as ‘outstanding’ as it reported a net sales rise of 23 percent for the three months to September 30, 2021.

THE DETAILS The US prestige beauty firm said that net sales grew in every region and product category as bricks and mortar stores reopened across the globe.

Skin Care was the stand-out category with sales hitting US$2,449 million, a rise of 18 percent yoy in constant currency. Make-up saw sales grow 18 percent also for a total of US$1,174 million. Fragrance reported a dramatic sales increase of 48 percent to reach US$609 million and hair care put on a respectable 9 percent to US$148 million.

In terms of region, The Americas reported an impressive 36 percent growth yoy in constant currency while Europe, the Middle East and Asia put on 21 percent. Sales in Asia/Pacific were up 11 percent.

Net earnings stood at US$692 million for the quarter, compared to US$523 million for the prior-year period.

THE WHY? Fabrizio Freda, President and Chief Executive Officer said, “We delivered excellent performance to begin fiscal 2022, despite the increased volatility and variability globally during the quarter, by virtue of our dynamic multiple engines of growth strategy. Our growth engines increasingly diversified, as we expected. Make-up, developed markets in the West, and brick-and-mortar reignited and complemented momentum in Skin Care, Fragrance, mainland China, Travel Retail in Asia/Pacific, and global Online. Impressively, relative to the pre-pandemic first quarter of fiscal 2020, the overall business is much bigger and more profitable.

Thirteen brands contributed double-digit organic sales growth versus the prior-year period, demonstrating the breadth of strength across our portfolio. Estée Lauder and M·A·C drove Make-up’s emerging renaissance, while La Mer and Clinique delivered stand-out results in Skin Care. Fragrance soared double-digits in every region, driven by Tom Ford Beauty and Jo Malone London. Our hero products performed exceptionally well and our innovation proved, once more, to uniquely capture consumer desires.”