Asia boosts sales for Estee Lauder Companies
Led by double-digit growth in China and Hong Kong, Asia/Pacific sales increased sharply for Estee Lauder Companies for its first quarter to the end of September.
It says the higher sales in China reflected strong gains for every brand except designer fragrances. Estee Lauder, Mac, La Mer, Tom Ford and Jo Malone led the sales growth.
Sales benefitted, in part, from continued demand for makeup products, an acceleration in skincare sales and targeted expansion of consumer reach.
Hong Kong’s increased sales reflected solid domestic growth and a rise in tourism. Growth was primarily driven by Estée Lauder, La Mer and Mac.
Operating performance was lower in Japan.
Overall, the company achieved net sales of $3.27 billion, up 14 per cent on the same period last year.
Incremental sales from the company’s acquisitions of Becca and Too Faced contributed about four points of reported sales growth. Net earnings rose 45 per cent to $427 million.
“Building on the global momentum of the past fiscal year, we benefitted from continued acceleration in China, Hong Kong, travel retail and global online, strength in several developed and emerging markets in Europe, and incremental sales from Becca and Too Faced,” says president/CEO Fabrizio Freda.
“Our online and travel-retail channels and most luxury and mid-sized brands posted double-digit sales gains.”