For the third quarter of 2016, beauty marketer Estée Lauder Cos. has reported net sales of $2.66 billion, an increase of 3 percent compared to the year-ago period of $2.58 billion. When not taking the fluctuations into account, Estée Lauder saw net sales increase by 6 percent and diluted net earnings per common share rising by 4 percent.
For cosmetics, the brand’s results were driven by strong growth by M.A.C, Smashbox and designer licensee Tom Ford. Currently, Estée Lauder’s cosmetics category is experiencing strong growth in products such as lipsticks and foundations and geographic growth in markets such as the United Kingdom.
In fragrance, Estée Lauder also posted double-digit gains from luxury brands such as Tom Ford and Jo Malone London, as well as its recent acquisitions, which include Le Labo and By Killian. The category as a whole saw operating income decreased due to lower designer sales, but the success of Jo Malone London’s fragrance partially offset these results.
Marketwise, Estée Lauder saw growth in the Americas and emerging markets such as the Middle East, Central Europe, South Africa and Russia. In Asia Pacific, with the exception of Hong Kong, Estée Lauder reported growth in South Korea, Japan, Australia and Taiwan as well as currency sales gains in China and Thailand.
Estée Lauder Cos., strengthened its presence in South Korea by purchasing an interest in Have & Be Co. Ltd’s Dr. Jart+ and Do The Right Thing.
The investment in South Korean skincare brands will keep Estée Lauder on the cutting edge of the country’s beauty innovation and trends. The investment will also help Estée Lauder increase its presence in Asia and capitalize on a growing South Korean beauty wave ahead of a potential global flourish.
(Source: Luxury Daily)