Estee Lauder reports strong growth in Hong Kong, China
Cosmetics giant Estee Lauder says it achieved sales growth in every global market last financial year, led by strong double-digit increases in China and Hong Kong.
Every single category posted growth as well.
Globally, Estee Lauder sales reached $13.68 billion, a 16 per cent increase on last year.
Operating income of $2.05 billion, was up 21 per cent from the prior year, while net earnings of $1.11 billion, was down 11 per cent.
President and CEO Fabrizio Freda said the results reflect, in part, the company’s strategy to drive growth by targeting its investments to shifts in consumer and market dynamics across product categories, geographic regions, brands and distribution channels. That strategy positioned the company well for the resurgence in global prestige skin care growth as well as the strong increase in demand among Chinese consumers.
“Sales climbed in virtually all our brands and we hit milestones along the way. Among the top four brands, our flagship Estee Lauder brand achieved record global sales and grew 22 per cent in constant currency, demonstrating the amazing equity of the brand. La Mer became the fourth brand in our portfolio to contribute well over $1 billion in net sales, and we increased sales at Mac and Clinique globally.”
He said product innovation and creativity were strong across brands and boosting investment in digital advertising helped accelerate sales growth.
Freda concluded: “In fiscal 2019, we will continue to create products that appeal to a more diverse and growing middle class around the world.”