The Estée Lauder Companies has delivered robust third-quarter results for the fiscal year 2024, posting a notable five per cent increase in net sales, which climbed to US$3.94 billion from US$3.75 billion in the previous year. This performance was bolstered by a six per cent rise in organic net sales, particularly fuelled by significant growth in the Europe, the Middle East & Africa (EMEA) regions, and a vibrant sales resurgence in Asia travel retail.

The beauty giant also reported a substantial increase in net earnings, which soared to US$330 million compared to US$156 million in the same period last year. This leap can largely be attributed to a favourable adjustment in the effective tax rate and an across-the-board increase in sales across nearly all product categories, with skincare leading the surge.

Fabrizio Freda, President and CEO, highlighted the exceptional growth of flagship brands such as La Mer, Estée Lauder, Jo Malone London, Le Labo, and The Ordinary. These brands have excelled in the market, propelled by iconic products and innovative new launches. This quarter also marked significant expansions, including Clinique’s successful debut on the U.S. Amazon Premium Beauty store and the opening of new flagship stores in Asia/Pacific for Jo Malone London and Le Labo, enhancing the company’s retail footprint.

“For the third quarter of fiscal 2024, we delivered our organic sales outlook, exceeded expectations for profitability and continued to improve working capital,” he said. “La Mer, Estée Lauder, Jo Malone London, Le Labo, and The Ordinary led organic sales growth, driven by beloved hero products and highly sought innovation. Asia travel retail returned to organic sales growth, as developed and emerging markets across Asia/Pacific, EMEA, and Latin America further contributed.”

The company’s strategic initiatives have not only expanded its market presence but also fortified its operational foundations, setting the stage for the anticipated delivery of US$1.1 to US$1.4 billion in incremental operating profit over fiscal years 2025 and 2026.

Looking ahead, Estée Lauder has updated its fiscal outlook, projecting continued organic sales growth and an expanded operating margin in the latter half of the year, despite facing macroeconomic challenges and geopolitical uncertainties. The focus remains steadfast on strategic investments in innovation, advertising, and market expansion, particularly in emerging markets, to secure long-term, sustainable growth.

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