THE WHAT? The Estee Lauder Companies has reported its results for the third quarter of fiscal 2021. The US prestige beauty behemoth saw sales climb 16 percent on a reported basis from the prior-year period to hit US$3.86 billion.
THE DETAILS Net sales grew in every region, Lauder said, and in most product categories, with skin care and fragrance both delivering strong growth, with sales up 28 percent in constant currency and 27 percent respectively, while make-up continued to suffer from its declining popularity in the face of the pandemic, with sales dropping 13 percent.
THE WHY? The growth reflects the recovery in several areas compared to the prior-year period where bricks and mortar stores began to be shut down as COVID-19 spread globally. Fabrizio Freda, President and Chief Executive Officer commented, “We exceeded our sales and earnings expectations, even as several markets experienced increasing pressure from COVID-19 throughout the quarter. Our growth engines of Skin Care and Fragrance were incredibly powerful. Sales rose in every region, led by double-digit growth in Asia/Pacific, where many markets contributed and sales growth in mainland China accelerated. Online thrived as a growth engine, with sales having increased strong double-digits around the world, and Travel Retail excelled. Estée Lauder, La Mer, Jo Malone London, Clinique, and Tom Ford Beauty led the robust performance of many brands in our portfolio.