The Estée Lauder Companies Inc. ended FY2019 with a bang: the company increased net sales 9% over the previous year, bringing in $14.86 billion.
Additionally, the company saw a 9% sales increase during Q4 2019. The quarter and year ended June 30, 2019.
“Fiscal 2019 was an outstanding year for our company,” said president and CEO Fabrizio Freda. “We achieved strong net sales gains across our business, fueled by investments in our strategic priorities, including improved data analytics that helped power our innovation and digital marketing.”
Here's what you need to know:
- Skin care sales grew 17% to $6,551 million: Net sales grew across most regions, led by Estée Lauder, La Mer and Clinique.
- Makeup sales increased 4% to $5,860: Sales were driven by Estée Lauder, MAC, Tom Ford Beauty and La Mer; these gains were partially offset by lower net sales from Clinique and Smashbox.
- Fragrance sales, at $1,802, decreased by 1%: Luxury fragrances grew, offsetting lower net sales from certain designer fragrances and Estée Lauder. Le Labo and By Killian were specifically highlighted for growth.
- Hair care sales were reported at $584 million, a 2% increase: Growth was driven by higher net sales from Aveda—driven by launches and continued success of “hero” franchises—and partially offset by lower net sales from Bumble and Bumble.
- Regionally, sales decreased in the Americas by 5% ($4,741) and increased in EMEA (15%, to $6,452) and Asia/Pacific (21%, $3,673)
- For the three months ending June 30, 2019, the company reported net sales of $3.59 billion, up 9% over the previous year
- Sales were largely driven by China and emerging markets, as well as travel retail and online channels; net sales in the United States, while improving, remain a “tough retail environment”
“Prestige beauty continues to be one of the most desirable consumer sectors,” said Freda. “As the best diversified pure play in the industry, we are uniquely positioned to capture global share. In fiscal 2020, we plan to continue to invest in the most compelling opportunities, including those in emerging markets beyond China. We expect another year of strong net sales growth, margin improvement and a double-digit increase in earnings per share.”