Estee Lauder China sales grow strongly
Estee Lauder China achieved double-digit sales growth in the third quarter to March, leading a solid Asia-Pacific performance by the multinational beauty retailer.
“The higher sales in China reflected strong double-digit gains in most brands and in the online, freestanding store and department store channels,” the company said in an earnings statement released overnight.
Reported sales in Taiwan also grew double-digits, while in constant currency, Malaysia generated strong sales gains. The company said its Hong Kong business “continues to stabilise” and Tom Ford, Jo Malone, La Mer and Mac each achieved strong double-digit growth.
“These increases were partially offset by slightly lower sales in Indonesia and the Philippines.
In Asia/Pacific, operating income increased, primarily due to higher results in China and Singapore,” the company said.
Globally, Estee Lauder achieved sales of US$2.86 billion for the quarter, an 8 per cent increase compared with the $2.66 billion of the same quarter last year.
Incremental sales from the company’s recent acquisitions of Too Faced and Becca contributed approximately half the reported sales growth.
Net earnings increased 12 per cent to $298 million, compared with $265 million last year.
President and CEO Fabrizio Freda said sales accelerated across every geographic region and in the company’s three largest product categories, “reflecting the range and strength of our brand portfolio and product offerings”.
“Our business in global travel retail and in China was exceptionally strong, driven by strong sales gains in virtually every brand. Our mid-sized and luxury brands, as well as online and specialty multi retail channels, also led growth.”