Fiscal 2022 has got off to a roaring start for the Estée Lauder Companies (ELC). Global sales for the multinational’s Q1 reached US$4.39 billion – an increase of 23 per cent compared to the same period last year.
A strong recovery in bricks-and-mortar stores fuelled growth in all major regional markets and in every product category.
Skincare continued to take centre stage with sales lifting 20 per cent to US$2.449 billion. La Mer posted impressive growth in China. While the launch of Smart Clinical Repair Wrinkle Correcting Serum and continuing demand for Even Better Clinical Reduced Dark Spot Corrector + Interrupter produced double digit growth for Clinique.
As major markets normalised and lockdowns eased, makeup sales soared 20 per cent to US$1.174 billion. New launches from Estée Lauder such as Double Wear Sheer Long-Wear Foundation and Pure Color Whipped Matte Lip Color and innovations from M.A.C moved the dial in double digits.
Jo Malone London and Tom Ford helped ELC’s fragrance division to lift sales by 50 per cent for the quarter to US$609 million. Le Labo and the Estée Lauder brand also experienced double digit growth and advance orders for the new Estée Lauder The Luxury Collection were significant. Kilian Paris also doubled its sales during the first quarter.
The return of in-store shopping globally was also a boon for leading haircare brands, Aveda and Bumble and bumble, with combined sales lifting nine per cent to US$148 million.
On the back of its outstanding Q1 results, ELC is forecasting an increase of 11 per cent to 13 per cent for its 2022 financial year compared to 2021.
We delivered excellent performance to begin fiscal 2022, despite the increased volatility and variability globally during the quarter, by virtue of our dynamic multiple engines of growth strategy, said Fabrizio Freda, president and CEO of the Estée Lauder Companies.
“Thirteen brands contributed double-digit organic sales growth versus the prior-year period, demonstrating the breadth of strength across our portfolio. Estée Lauder and M.A.C drove makeup’s emerging renaissance, while La Mer and Clinique delivered standout results in skin care. Fragrance soared double digits in every region, driven by Tom Ford Beauty and Jo Malone London. Our hero products performed exceptionally well and our innovation proved, once more, to uniquely capture consumer desires.”