THE WHAT? The Estee Lauder Companies has announced its results for the third quarter of fiscal 2022. The US prestige beauty giant professed its net sales growth of 10 percent yoy to US$4.25 billion a ‘strong’ performance amid market headwinds.
THE DETAILS Net sales grew in every product category, Lauder said, largely reflecting continued recovery in bricks and mortar stores, driven by double-digit growth in The Americas and Europe, Middle East and Africa regions as well as global growth online.
Fragrance saw the fastest sales growth, up 28 percent (reported) to US$579 million, followed by hair care’s 15 percent rise to US$147 million. Make up increased sales by 9 percent to US$1,114 million while skin care put on a more modest 6 percent to hit US$2,395 million.
Net earnings stood at US$0.56 billion for the quarter, versus US$0.46 billion in the prior-year period.
THE WHY? Fabrizio Freda, President and Chief Executive Officer said, “We delivered strong sales growth and better-than-expected profitability in the third quarter of fiscal 2022 in the face of accelerated headwinds as the quarter evolved, including COVID restrictions in the Asia/Pacific region. Every category grew organically, led by Fragrance’s outstanding performance globally and the makeup renaissance in western markets. Eleven brands contributed double-digit organic sales growth and further demonstrated our diversification, empowered by our multiple engines of growth strategy. Consumer demand remained robust even in this more inflationary environment.