Semaphoring a strong return to bricks-and-mortar stores worldwide, The Estée Lauder Companies (ELC) posted net sales of US$5.54 billion for its second quarter to December 31st. A 14 per cent increase on the same period last year and the best quarterly performance in the multinational’s history.
Revenues surged in every regional market, led by skincare with sales of US$3.159 billion – up 12 per cent. La Mer enjoyed double digit gains, fuelled by hero products such as The Treatment Lotion and the launch of The Hydrating Infused Emulsion.
Power brand, Clinique, also turned in double digit growth, driven by increased demand for bestsellers such as Even Better Clinical Radical Dark Spot Corrector + Interrupter and newbie Smart Clinical Repair Wrinkle Correcting Serum.
The long-anticipated revival of makeup was also apparent in Q2. Sales of colour cosmetics reached US$1.386 billion – up 11 percent on the same period last year. The Estée Lauder core brand headed the charge with double digit growth, led by the launch of Double Wear Long-Wear Sheer Foundation.
M.A.C, Tom Ford Beauty, Too Faced and Smashbox also put in solid performances.
The Covid-19 pandemic strongly impacted fragrance sales, but the category has resurged with the re-opening of key markets. ELC fragrance sales increased 29 per cent in Q2 to US$799 million – up from US$618 million 12 months prior. Jo Malone London and Tom Ford Beauty boosted the multinational’s bottom line with double-digit growth, thanks to hero scents such as English Pear & Freesia and Black Orchid.
Strong holiday demand moved the dial upwards for Le Labo. Double digit growth was also enjoyed by Kilian Paris, backed by favourites such as Good Girl Gone Bad and new launches including Apple Brandy on the Rocks.
Haircare sales, centred on the Aveda and Bumble & bumble brands, were also up 17 per cent to US$180 million for the second quarter.
We achieved record sales and profitability in the second quarter of fiscal 2022, says Fabrizio Freda, President and CEO of The Estée Lauder Companies. “Every category, region and major channel expanded, showcasing the strength of our multiple engines of growth strategy. We seized the favourable dynamics of skincare, fragrance, developed markets in the West, and bricks-and-mortar, and continued to prosper in the East with Chinese consumers as well as in global travel retail and global online.”
As we embark on the second half of fiscal 2022, our business is far bigger and more profitable than pre-pandemic with every region larger, he noted.