Five main pillars pushed the Estée Lauder Companies (ELC) to double digit growth for its fiscal year 2021 – skincare, luxury and artisanal fragrances, the Asia/Pacific region, online sales and travel retail in Asia.
As many parts of the world opened up again, Q4 sales for the multinational skyrocketed 62 per cent to US$2.48 billion. A startling result which pushed sales for the financial year 2021 to US$16.2 billion.
All geographic regions recorded major growth. Europe/Middle East/Africa filled the number one slot with sales of US$6.94 billion, followed by Asia/Pacific at US$5.48 billion and The Americas at US$3.79 billion.
Net earnings rose to US$2.87 billion – up from US$680 million in FY2020.
Double digit growth for three core skincare players – Estée Lauder, Clinique and La Mer – was fuelled by strong sales in mainland China and the continuing popularity of hero products such as the Advanced Night Repair franchise.
Makeup sales were down across the majority of ELC’s brands, including M.A.C and Clinique. But started to rebound in the second half of the fiscal year as more markets reopened bricks-and-mortar stores following Covid-19 restrictions.
Luxury fragrance proved a hotspot, underpinned by mainstream and niche brands such as Jo Malone, Tom Ford, Le Labo, Kilian Paris and Editions de Parfums Frederic Malle.
The acquisition of Have&Be Co (DrJart+) and increased ownership of Deciem, the maker of The Ordinary, also boosted ELC’s bottom line.
We delivered outstanding results in fiscal 2021, capped by an exceptional fourth quarter and powered by multiple engines of growth, said Fabrizio Freda, president and CEO of ELC.
“Notably, both sales and profitability meaningfully exceeded fiscal 2019 performance. Eight of our brands grew sales in double-digits, led by Estée Lauder, Lauder, La Mer and Jo Malone. We begin fiscal 2022 as a stronger company and our success in the past year gives us confidence for the new year.”