The Estée Lauder Companies has posted strong fourth quarter and year end results, hitting the $10bn milestone for net sales. The beauty giant reported net sales of $10.18bn for the year ended 30 June, 2013, up 5% on the previous year. There was a 150 basis point increase in operating margin and net earnings for the year rose 19% to $1.02b. Diluted net earnings per common share were up 20% to $2.53.Fourth quarter results, meanwhile, increased 7% on the previous year, reaching $2.41bn.
Sales were particularly strong amongst the Company's luxury brands, online and travel retail channels, and in emerging markets. There was also strong growth in developed markets.
Fabrizio Freda, President and CEO described the results as “outstanding”, adding: “Fiscal 2013 marked another record year in which our Company achieved a number of historic milestones: $10bn in net sales, 15.2% operating margin and $1bn in net earnings. Looking at the broader picture, we once again posted sales growth that we believe was greater than global prestige beauty, and achieved strong across the board sales gains in each of our geographic regions and major product categories. We expect our strong momentum to extend into fiscal 2014.”
The skin care category, a strategic priority for the Company posted a 6% increase in sales, boosted by several high profile launches including Perfectionist CP+R and Advanced Time Zone from Estée Lauder; Even Better Dark Eyes Dark Cirlce Corrector from Clinique; and The Moisturizing Soft Cream from La Mer.
The make-up category, which includes, M.A.C, Estée Lauder and Bobbi Brown posted a 5% increase on the previous year, while hair care growth, up 6%, was driven by Aveda. The Company's fragrance division posted a 3% increase in net sales for the year.
Within its geographical territories, there were healthy gains for The Americas (+5%), EMEA (+4%) and Asia Pacific (+5%).
The Company expects fiscal 2014 to be a similar success story, with global prestige beauty sales to rise between three and four percent. This reflects the slowdown in certain Southern European markets and South Korea. It also expects more growth from the US, although at a slower pace than in fiscal 2013.
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