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Estée Lauder Full Year 2021, Q4 Results

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The company reported net earnings of $2.87 billion for the full year 2021.

Estée Lauder has announced its full year fiscal 2021 net sales were $16.22 billion, an increase of 13% from $14.29 billion in the prior-year period. Fourth quarter net sales were $3.94 billion, a 62% increase compared with $2.43 billion in the prior-year period.

Q4 Results

Net income in the fourth quarter 2021 was $1.02 billion. 

The company reported a net loss of $462 million and diluted loss per share of $1.28.

Net sales for the skin care category were $2.37 billion, compared to $1.61 billion in the prior year.

The makeup category reported net sales were $960 million, compared to $545 million in the prior year.

Fragrance reported net sales of $448 million, compared to $171 million in the prior year.

The hair care category reported net sales of $153 million, compared to $98 million in the prior year.

Full Year Results

The company reported net earnings of $2.87 billion, compared with net earnings of $0.68 billion last year.

Total reported operating income was $2.62 billion, an increase from $606 million in the prior year.

Net sales for the skin care category were $9.48 billion, compared to $7.38 billion in the prior year.

The makeup category reported net sales of $4.20 billion, compared to $4.79 billion in the prior year.

Fragrance reported net sales of $1.92 billion, compared to $1.56 billion in the prior year.

The hair care category reported net sales of $571 million, compared to $515 million in the prior year. 

Fiscal Year 2022 Outlook

Reported net sales are forecast to increase between 13% and 16% versus the prior-year period. This is ahead of the company’s long-term goal of 6% to 8%.

Q1 2022 Outlook

Reported net sales are forecast to increase between 17% and 19% versus the prior-year period.

Fabrizio Freda, president and CEO, said:

We delivered outstanding results in fiscal 2021, capped by an exceptional fourth quarter and powered by our multiple engines of growth strategy as well as the timeless desirability of prestige beauty. Notably, both sales and profitability meaningfully exceeded fiscal 2019 performance. Amid the challenges of the pandemic, we invested in near- and long-term growth opportunities and managed costs elsewhere with discipline, while making important progress on our social impact commitments and sustainability goals.

Our growth engines of skin care, luxury and artisanal fragrance, Asia/Pacific, travel retail in Asia/Pacific, and global online performed exceptionally well. Innovation soared and eight of our brands grew sales double-digits, led by Estée Lauder, La Mer, and Jo Malone London. We amplified the strength of our skin care portfolio as we became majority owners of Deceim, with its coveted brand The Ordinary. We also invested in an innovation center in Shanghai and a manufacturing facility near Tokyo to enhance our rapid growth in the region.

We begin fiscal 2022 as a stronger company thanks to our employees, whose compassion, creativity, and resolve have been extraordinary during the pandemic. Our success in the past year gives us confidence for the new year, as volatility and variability from COVID-19 are likely to persist for some time to come. For fiscal 2022, we expect strong net sales and adjusted earnings per share growth with continued margin expansion. Our growth engines are poised to increasingly diversify as makeup and hair care, developed markets in the west, and brick-and-mortar retail gradually recover and complement the strength of our existing growth engines. We anticipate that growth in emerging markets will also resume over time as the impacts of the pandemic abate.

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