Lauder Q1 sales soar 18%
Revises up full year sales forecast
The Estée Lauder Companies Inc has reported net sales of $2.48bn in the quarter ended 30 September 2011, an 18% increase on the prior year quarter. Excluding the impact of foreign currency translation, net sales were up 14%. Net earnings for the quarter totalled 278.6m, up 46%.
“Our very strong company performance continued to be broad based highlighted by healthy top line growth across all categories and regions, strong bottom line growth and continued margin expansion,” commented Fabrizio Freda, Lauder’s president and chief executive. “These results reflect the strength of our brands, the appeal of our superior product innovations and the effectiveness of our focused advertising and marketing spending.”
The company’s strong performance was due to solid overall business, particularly from its largest brands, aided by a weaker US dollar. Additionally, all product categories and regions benefited from Lauder’s efforts to reduce or eliminate non-value added costs, which saw the company realise savings of $44m during the period.
Skin care proved the most lucrative sector and the fastest growing. Sales increased by 20% in local currencies to reach over $1bn, buoyed by new launches from Estée Lauder, Clinique and La Mer.
In light of first quarter gains, Lauder has revised its full year local currency sales forecast to between 8% and 10% and is increasing its earnings per share estimate.