The Estée Lauder Companies has reported net sales for the fourth quarter ended June 30, 2015, of $2.52 billion, compared with $2.73 billion in the prior-year period.
For the year, the company posted net sales of $10.78 billion, a 2% decrease compared with 2014.
The company outlined its strong growth drivers, including online, specialty-multi and freestanding store channels, as well as emerging markets and the Unite Kingdom.
Luxury Brand Boom
Luxury brands were a top driver for The Estée Lauder Companies. Countering general weakness in the category, luxury fragrance brands did well for the period, including Jo Malone London and Tom Ford. While skin care declined, luxury skin care brands did well.
Makeup sales grew 2% for the year, totaling $4,304.6 million, primarily driven by strong growth of the company’s makeup artist brands, as well as Smashbox and Tom Ford.
The company's heritage brands have experienced decreases in results.
Other areas of strength included:
- Channels such as freestanding retail stores, travel retail and specialty multi-brand retailers
- Lipsticks and foundations
- Prestige makeup usage in Asia
Hair Care Rises
Hair care sales rose 3% for the period, totaling $530.6, driven by expanded global distribution, primarily in salons, freestanding stores and travel retail for Aveda and from specialty-multi brand retailers for Bumble and bumble.
Brand growth came from Smooth Infusion Naturally Straight by Aveda and the expansion of Bumble and bumble’s Hairdresser’s Invisible Oil line of products.
Skin Care Drop
Skin care sales dropped 6% year-over-year to $4,478.7 million. Positive results were realized from the Re-Nutriv Ultimate Diamond products and Clinique Smart custom-repair serum. Higher sales were also seen at La Mer.
Fragrance sales for the period fell 1%, totaling $1,416.4 million, impacted by lower sales of certain Estée Lauder, Clinique and designer fragrances.
Looking Ahead at 2016
The company is forecasting constant currency net sales growth of 6% to 8% and double-digit earnings per share growth.