The fourth quarter was a mixed bag for The Estée Lauder Companies (ELC). Harsh Covid-19 restrictions in China impacted the multinational’s fortunes, leading to a 10 per cent decrease in revenues to US$3.56 billion compared to US$3.94 billion for the same period last year.

But the company’s full year performance was another matter. Net sales rose 9 per cent during its FY2022 to reach US$17.74 billion (AUD$25.3 billion), driven by increased demand in the Americas, Europe,  the Middle East and Africa (EMEA).

Skincare continued its run as the top category, with global sales spiking to US$9.886 billion. La Mer and Clinique delivered standout results.

Makeup also staged a strong recovery for the year with sales climbing to US$4.667 billion – up from US$4.203 billion in FY2021. The core Estée Lauder brand and M.A.C spearheaded the resurgence.

Fragrance enjoyed the biggest percentage growth with revenues rising to US$2.508 billion – up from US$1.926 billion in FY2021. Jo Malone London, Tom Ford and Le Labo were key to the uplift.

Aveda and Bumble & Bumble both benefited from a return to in-store shopping in leading markets. ELC’s haircare sales rose to US$631 million – up from US$571 million a year earlier.

Europe, the Middle East and Africa was the number one regional market for the multinational with annual sales of USUS$7.68 billion, followed Asia/Pacific (US$5.43 billion) and The Americas (US$4.623 billion).

We delivered excellent results in fiscal 2022, exceeding our expectations in the fourth quarter and achieving record revenue and profitability on an adjusted basis for the year, said Fabrizio Freda, President and CEO.

“Our multiple engines of growth strategy proved invaluable amid pandemic and macro complexity, affording us the diversification to seize growth of the moment. The Americas and EMEA prospered, fragrance soared, and makeup realised the promise of its emerging renaissance.

“La Mer, M.A.C and Jo Malone London led the contribution of double-digit organic sales growth by nine brands. Brick and mortar and online each grew globally, as we capitalised on re-opening, extended our consumer reach in high-growth channels, and amplified our omnichannel capabilities.”

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