Household and Personal Products Industry

Skin care, makeup, fragrances and hair care products marketed under four divisions. High End Prestige and Makeup Artist Brands—Estée Lauder, MAC, Bobbi Brown, La Mer, Jo Malone, Tom Ford Beauty; Prestige Skin Care and Alternative Channels— Clinique, Origins, Ojon; Fragrance Licensing and Creative Incubator—Aramis, Lab Series, Tommy Hilfiger, Kiton, Donna Karan, Michael Kors, American Beauty, Flirt!, Good Skin, Sean John, Mis-soni Profumi, Daisy Fuentes, Coach, Grassroots Research Labs; Salon and Pharmacy—Aveda, Bumble and Bumble, Darphin.

New Products:

Skin Care—Advanced Night Repair Eye Synchronized Complex and Re-Nutriv Ultimate Lift Age-Correcting Collection, Repair-wear Laser Focus Wrinkle & UV Damage Corrector and Even Better Clinical Dark Spot Corrector from Clinique, La Mer The Radiant Serum and The Eye Balm Intense; Makeup—Pure Color eye and lip products, Clinique Chubby Stick Lip Colour Balms; Fragrance— Coach Poppy, Hilfiger Loud for Her, Estée Lauder Pleasures Bloom; Hair Care—Aveda Control Force and Be Curly style prep.

Comments:

Estée Lauder is benefitting from a strong product lineup and pent up consumer demand for prestige products, including cosmetics. For the fiscal third quarter ended March 31, 2011, sales jumped 16% to $2.1 billion and net earnings more than doubled to nearly $125 million.

For the nine months, sales rose 13% to more than $6.7 billion and net earnings surged 44% to over $660 million.

“Our results for the quarter and year to date continue to vali-
date our strategic direction,”said Fabrizio Freda, president and chief
executive officer. “Our focus on building enduring brand equities
and on serving the global demand for prestige quality products and
high-touch services is clearly resonating with consumers.”
Through nine months, skin care sales rose 15% to $2.8 billion,
makeup sales increased 14% to more than $2.5 billion, fragrance
sales were up 10% to $1 billion, hair care sales rose 4% to $316
million and“other”fell 1% to less than $46 million.

With its fiscal year ending June 30, 2011, company executives were confident that a significant increase in global ad spending on

All About Aerin

THE ESTÉE LAUDER brand announced a new collaboration with Aerin Lauder and Aerin LLC, her new luxury lifestyle brand. Under the arrangement, Lauder will continue to be actively involved in the Estée Lauder brand, serving as creative consultant and becoming its style and image director. The Estée Lauder brand will be the exclusive beauty partner to Aerin LLC in launching a beauty line under the Aerin name to be sold at select Estée Lauder counters.

The Re-Nutriv brand expands with Ultimate Lift Age-Correcting Crème.

new initiatives and product launches would increase sales between 10-11%. It’s no surprise that EL executives expect skin care and makeup to be the leading sales growth categories, followed by fragrance and hair care. Finally, geographic region net sales growth in constant currency was expected to be led by Europe, the Middle East & Africa, followed by the Americas and Asia/Pacific.

A Look Back

In fiscal 2010, sales rose 6% to nearly $7.8 billion and net income more than doubled to $478 million. International operations accounted for 62% of sales. By distribution channel, international department stores accounted for 28% of sales, followed by US department stores (27%), perfumeries (13%), retail stores, travel retail and“other”(9% each), and salons/spas (5%). By product category, skin care accounted for about 41% of sales, followed by makeup (38%), fragrance (14%), hair care (5%) and other (<1%).