Estée Lauder saw net sales of $3.74 billion in the quarter ended on Dec. 31, compared to $3.21 billion in the previous year’s quarter. Estée Lauder attributes its positive sales to growth in Asia, online global sales and travel retail.
“In our second quarter we continued our strong momentum and generated stellar results,” said Fabrizio Freda, president and CEO at Estée Lauder, in a statement. “In constant currency, our sales grew 14 percent, led by exceptional strength in travel retail, global online and Asia, along with strong double-digit growth in several markets in Europe, including Italy and Benelux.
“We delivered double-digit sales gains across most product categories and many brands, including Estée Lauder, luxury brands and most mid-sized brands,” he said.
Estée Lauder expects to see benefits come from the new U.S. Tax Cuts and Job Acts. The manufacturer saw actual net earnings of $123 million, after a provisional one-time $394 million charge in regards to the new tax.
$428 million of net earnings and diluted earnings per share of $1.15 were reported in the previous second-quarter. Diluted earnings per share were $.33 in the quarter ending on Dec. 31.
Tom Ford and the Estée Lauder brand were significant contributors to the company’s growth, with sales increases in the double digits. Eye shadow and lip color sub-categories drove the former’s sales, while the Estée Lauder brand sales were supported by its Double Wear foundation and Pure Color lip collections.
The Tom Ford brand also saw success in its Private Blend fragrances and other scent-related product launches, which includes September-released limited-edition fragrance, named “Fucking Fabulous,”
Estée’s acquisition of popular lower-end brands such as Too Faced and BECCA also supported its growth with incremental sales. However, slow foot traffic in U.S. bricks-and-mortar contributed to lower sales in the country.
The personal goods company believes it will see continued growth in the New Year, with growth between 12.5 and 13.5 percent, and positive influence from foreign currency translation.
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