The Estée Lauder Companies today posted net sales of US$5.54 billion for its second quarter ended 31 December, an increase of +14% year-on-year. Organic net sales increased +11%. Net earnings reached US$1.09 billion, compared with US$0.87 billion in the prior-year period.
Global travel retail sales increased double digits, reflecting continued growth from Asia Pacific, despite travel restrictions there during much of the second quarter. Net sales in the channel grew in Europe, the Middle East & Africa and the Americas as the partial lifting of travel restrictions, specifically in the UK and US, increased traffic and supported the reopening of doors.
Across the group, net sales grew in every region and product category, reflecting early stages of recovery in brick-and-mortar retail stores, primarily in western markets, and in ecommerce. The results, said the company, “reflected robust consumer response to holiday offerings and during key shopping moments”.
President and Chief Executive Officer Fabrizio Freda said: “We achieved record sales and profitability in the second quarter of fiscal 2022, empowered by the timeless desirability of our brands and despite accelerated volatility and variability, as well as supply chain challenges, from the pandemic.
“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 brick-and-mortar, and continued to prosper in the East with Chinese consumers as well as in global travel retail and global online.”
Freda added: “Our brands excelled in the key shopping moments of 11.11 and Holiday, welcoming new consumers and serving loyal consumers with festive exclusives, highly-sought hero products, enticing innovation, and elevated high-touch services in-store and 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. This reinforces our confidence in our ability to navigate the impacts of the prolonged pandemic. We are raising our fiscal 2022 full year outlook, as we reflect our outstanding results to-date and are mindful of the risks of continued volatility and disruption in the second half of the year.”
By category, skincare sales grew in every region, led by strong double-digit sales growth from La Mer and Clinique.
Makeup sales increased, reflecting the continued progression towards recovery in western markets, increased usage occasions and easier comparisons to the prior year, said the company. The growth was led by Estée Lauder and MAC. Too Faced, Tom Ford Beauty and Smashbox also contributed.
In fragrance, sales grew in every region and across almost all brands, “driven by continued resilience in luxury fragrance, the opening of brick-and-mortar retail and the beginning of travel recovery in western markets”.
Hair care sales also grew, reflecting increases from both Aveda and Bumble and bumble as brick-and-mortar salons and retail recovered.
For the six months ended 31 December 31, the Company reported net sales of US$9.93 billion, an +18% increase compared with a year earlier. Organic net sales increased +14%. Net earnings were US$1.78 billion, ahead of the previous year’s US$1.4 billion.
