Thanks to gains in skincare, the Asia-Pacific region, travel retail and online sales, The Estée Lauder Companies Inc. has reached a new quarterly revenue high – US$4.01 billion.
Net sales were up by seven per cent year-over-year in the fiscal second quarter, and net earnings were at US$573 million – a significant increase from US$123 million the prior year. Diluted net earnings per share were also at US$1.55, in contrast to 33 cents the year before.
The Asia-Pacific region was up 17 per cent year-over-year, with executives noting that China remains particularly strong for the business.
According to Estée Lauder president and CEO, Fabrizio Freda, the success is the result of a multipronged strategy.
“Programs of our brands are global…but they are executed in a very local, relevant way,” Fabrizio said. “Global brands, they can be very relevant locally in the way they speak to consumers.”
Freda added that the company also tailors its messaging to a range of Chinese consumers, emphasising the importance of diversity.
“We make huge efforts to understand all the aspects of diversity and to tailor to all the different populations the same way in the U.S, you would tailor to Hispanic of African-Americans or Caucasians with customisation or personalisation ideas.”
Skincare sales were Lauder’s largest subcategory in the quarter, increasing by 16 per cent to US$1.7 billion. Haircare sales also soared to seven per cent, while makeup was up by three per cent and fragrance sales declined by five per cent.
