The Estée Lauder Companies, one of the world’s leading manufacturers and marketers of quality skincare, makeup, fragrance and haircare products, has seen shares soar 12 per cent, with a sales increase of eight per cent (to US$3.52 billion) for the first quarter of fiscal 2019.
Skincare was the strongest performer in terms of product categories, with sales increased to a reported 17 per cent (to US$1,486 million). Asia-Pacific was the fasted growing region, boasting sales up to 24 per cent (to US$855 million), while India and the Middle East’s emerging markets also had strong growth – offsetting lower net sales in the UK for a rise of 14 per cent in Europe, the Middle East and Africa.
“Our fiscal year is off to an excellent start,” said The Estée Lauder Companies’ president and CEO, Fabrizio Freda. “Our sales and earnings per share grew double digits, reflecting multiple engines of global growth throughout our product categories, brands, regions and channels. Our creative innovations and high-quality products resonated strongly. We attracted new consumers and increased engagement with existing ones through successful digital advertising and influencer activities.
We are operating in a challenging macro environment with many economic and geopolitical risks, but we are confident in the strength of our business strategy, the quality of our products, the desirability of our brands and our ability to execute with discipline and agility. With our strong first-quarter results and exciting upcoming launches and programs, we are raising our EPS guidance for the year.”
The global prestige beauty market is predicted to grow five to six per cent over fiscal 2019, but it is warned that issues such as geopolitical tensions, regulatory matters and global security continue to affect consumer spending in some countries.
