Estée Lauder reports rise in profits in Q4

Beauty and personal care products maker Estée Lauder Companies witnessed surge in profits in fourth quarter due to strong demand for its skincare and makeup products, including those under Clinique and MAC brands.

The company’s net income attributable rose to $257.7m in fourth quarter ended 30 June, from the prior year’s $94.0m. Net sales rose 13.2% to $2.73bn from $2.41bn in the comparable prior-year period.

Estee Lauder, home to brands such as Clinique and Origins, as well as its namesake line, said it expects revenues to grow between 3% and 4%, excluding the impact of foreign currency, in the new fiscal year.

The company reported sales gains across all of its categories and geographic markets for the quarter.

In the US and travel retail, the company witnessed double-digit gains, as well as double-digit local currency increases in many European emerging markets.

In Asia/Pacific, local currency growth was led by strong increases in Japan, China and Hong Kong.

It also noted that results were boosted by early orders from some retailers ahead of the implementation of some IT-upgrades in July in some of Estee Lauder’s largest locations.

For the year, the company achieved record net sales of $10.97bn, an 8% increase compared with $10.18bn in the prior year.

Founded in 1946 in New York City, Estée Lauder’s products are sold in over 150 countries and territories under the following brand names: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M-A-C,Bobbi Brown, Tommy Hilfiger, Kiton, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, Darphin, Michael Kors, American Beauty, Flirt!, GoodSkin Labs, Grassroots Research Labs, Tom Ford, Coach, Ojon, Smashbox, Ermenegildo Zegna, AERIN Beauty, Osiao, Marni, and Tory Burch.