Estee Lauder Asia-Pacific sales surge
Estee Lauder Asia-Pacific sales achieved double-digit growth in the December quarter.
The beauty giant says the growth was broadbased, with nearly half of the markets in the region growing by double digits.
“China, Hong Kong and Japan continued to deliver strong growth, and Korea net sales accelerated. Prestige beauty in China accelerated and the company continued to build share,” the company said in a statement.
“[We] generated double-digit net sales growth in virtually every major product category and channel. Operating income increased, primarily due to higher net sales.”
Globally, Estee Lauder sales exceeded US$4 billion for the first time, up 7 per cent from the same time a year earlier. Net earnings rose to $573 million compared with $123 million last year.
“We delivered an excellent performance in our fiscal second quarter,” said president and CEO Fabrizio Freda. “Importantly, this was our eighth consecutive quarter of impressive net sales growth that met or exceeded our long-term goal, all while navigating many global macro issues.
“Our sustained progress is the result of our multiple engines of growth strategy, and demonstrates our agility in moving resources to the best global opportunities,” he said.
The strongest growth engines during the quarter included the skin care category globally, the Estee Lauder Asia-Pacific business, online and travel retail channels, and most brands, including Estee Lauder, La Mer, Mac and the company’s artisanal fragrance brands.
“Despite a volatile and challenging backdrop, we are optimistic about our company’s long-term outlook. We are very well-positioned to build share in global prestige beauty,” Freda said.
“We plan to increase our investments during the next six months behind our successful innovations, high-quality products, compelling digital advertising and effective commercial execution, while also enhancing our capabilities to strengthen our industry leadership and deliver long-term profitable growth.”