The prestige beauty category is in overdrive worldwide. The Estée Lauder Companies (ELC) have posted double digit growth in its third quarter. Global net sales rose 10 per cent to US$4.25 billion – up from US$3.86 billion for the same period last year.
Every major category fuelled the booming bottom line. Global fragrance sales soared 28 per cent to US$579 million as the standout performer. Skincare sales rose 6 per cent to US$2.595 billion and makeup spiked 9 per cent to US$1.14 billion. Haircare was another double-digit growth sector, rising 15 per cent to US$147 million.
ELC President and CEO, Fabrizio Freda, emphasised the outstanding result. “We delivered strong sales growth and better-than-expected profitability in the third quarter of fiscal 2022 in the face of accelerated headwinds as the quarter evolved, including Covid restrictions in the Asia-Pacific region.”
EMEA (Europe, Middle East, Africa) remained the largest regional market for ELC with a 17 per cent increase in sales in Q3 to US$1.99 billion. Revenues in the Americas surged 15 per cent to US$1.053 billion. But Covid restrictions in many Chinese provinces had a dampening effect on the Asia-Pacific region, driving sales down 4 per cent compared to the same quarter in 2021 to US$1.203 billion.
Eleven of ELC’s brands enjoyed double digit growth, added Freda, including M.A.C, Estée Lauder, Jo Malone London, Tom Ford Beauty and Bobbi Brown.
Increased in-store traffic flow, notably in speciality stores such as Ulta Beauty and Sephora boosted very strong growth. “We expect to deliver a record year in fiscal 2022”, said Freda. “We are confident that our business in China will rebound when Covid-19 abates.”
The confidence is well-placed. For the nine month period to date ending March 31st, ELC posted net sales of US$14.2 billion. An increase of 15 per cent over the same period in the previous financial year.
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