Estée Lauder has announced its full year 2022 results that reported net sales of $17.74 billion, an increase of 9% from $16.22 billion in the previous year.
The company reported net earnings of $2.39 billion, compared to $2.87 billion in the previous year.
Total reported operating income was $3.17 billion, an increase from $2.62 billion in the previous year.
Fourth Quarter 2022
Estée Lauder also announced its fourth quarter 2022 net sales of $3.56 billion, a 10% decrease from $3.94 billion in the previous year.
Net earnings were $52 million.
Skin care reported full-year net sales of $9,886 million, compared to $9,484 million in the previous year.
Net sales growth from La Mer, Clinique and Bobbi Brown was offset by a decline from Estée Lauder.
Makeup reported full-year net sales of $4,667 million, compared to $4,203 million in the previous year.
The growth was led by increases from both M·A·C and Estée Lauder.
Fragrance reported full-year net sales of $2,508 million, compared to $1,829 million in the previous year.
Net sales grew across every region and every fragrance brand, led by Jo Malone London, Tom Ford Beauty and Le Labo.
Hair care reported full-year net sales of $631 million, compared to $571 million in the previous year.
Hair care net sales rose across every region, reflecting increases from both Aveda and Bumble and bumble as brick-and-mortar recovered from prior-year closures related to COVID-19 through much of the world.
Full Year Fiscal 2023
Reported net sales for fiscal 2023 are forecast to increase between 3% and 5%, compared to the previous year.
The company also sounded a cautionary note: "The company enters the fiscal year during a volatile period of record inflation, supply chain disruptions, strengthening U.S. dollar, risk of a slowdown in many markets globally, and with a strong headwind from the August 2022 COVID-19 restrictions in Hainan."
Fabrizio Freda, president and CEO said, “We delivered excellent results in fiscal 2022, exceeding our expectations in the fourth quarter and achieving record revenue and profitability on an adjusted basis for the year. Our multiple engines of growth strategy proved invaluable amid pandemic and macro complexity, affording us the diversification to seize growth of the moment. The Americas and EMEA prospered, fragrance soared, and makeup realized the promise of its emerging renaissance.
"La Mer, M·A·C and Jo Malone London led the contribution of double-digit organic sales growth by nine brands, impressive on its own and especially so given the significant pressure from COVID-19 in Asia/Pacific at the end of the year. Brick-and-mortar and Online each grew globally, as we capitalized on reopening, extended our consumer reach in high-growth channels, and amplified our omni-channel capabilities.”