Estee_Lauder sold $17.74 billion in fiscal 2022

On August 18 (Thursday) before the US stock market, Estee Lauder announced its fourth quarter and full-year financial results for fiscal 2022.

According to the financial report, net sales of the Estee Lauder Group for the fiscal year ending June 30, 2022 were $17.74 billion, an increase of 9% from $16.22 billion in the same period last year. Organic net sales increased 8%, driven by double-digit growth in the Americas and Europe, Middle East and Africa (“EMEA”) regions, primarily reflecting a recovery in brick-and-mortar retail, as well as double-digit global online growth2 and travel Growth in retail.

Fabrizio Freda, President and Chief Executive Officer, said: "We delivered an excellent fiscal 2022, exceeding our expectations in the fourth quarter and delivering record revenue and profitability on an adjusted annual basis. Amid popularity and macro complexity, our multi-engine growth strategy has proven invaluable, allowing us to diversify to capture current growth. Americas and EMEA thrive, fragrances soar, cosmetics Delivered on the promise of its burgeoning revival. La Mer, M.A.C and Jo Malone led nine brands to double-digit organic sales growth as we capitalized on reopenings, expanding our presence in high-growth channels Consumer reach and expanding our omni-channel capabilities, both brick-and-mortar and online businesses are growing globally."

La Mer's double-digit growth was driven by the strength of Chinese consumers in mainland China and travel retail. Meanwhile, Bobbi Brown delivered strong double-digit skincare net sales growth in every region, led by strong consumer demand in China.

Notably, increases in net sales for La Mer, Clinique and Bobbi Brown were offset by declines in Estée Lauder Skincare. Overall, the Estee Lauder Group's skin care products operating income in fiscal 2022 declined, which the company believes is mainly due to the decline in net sales related to the resurgence of new coronary pneumonia cases in Asia in the second half of fiscal 2022. The high-single-digit growth in the first nine months of the fiscal year was offset by the negative impact of increased COVID-19-related restrictions in China in the fourth quarter, including a temporary reduction in capacity at the company's distribution facility in Shanghai, leading to skincare growth this fiscal year flat.

Regionally, the Americas saw double-digit growth in net sales in the U.S., Canada and Latin America as brick-and-mortar retail traffic recovered during the year. Net sales rose in every product category and nearly every distribution channel. Net sales in Asia Pacific decreased slightly, and in mainland China, net sales were nearly flat year-over-year, as the impact of increased COVID-19 restrictions was mostly offset by strong growth in the first half of fiscal 2022. Net sales benefited from successful programs during major shopping events, including the 11.11 Global Shopping Festival and the 6.18 Mid-Year Shopping Festival, where the Estee Lauder brand ranked first on both Tmall and JD.com.

According to the financial report, Estee Lauder's fourth-quarter net sales were US$3.56 billion, down 10% year-on-year, US$80 million higher than market expectations, and net profit was US$50 million, down 95% year-on-year.

Divided by major product categories, net sales of skin care products were US$1.883 billion, down 21% year-on-year; net sales of cosmetics were US$993 million, up 3% year-on-year; net sales of fragrance products were US$521 million, up 16% year-on-year; Net sales of hair care products were $156 million, up 2% year over year. Other business net sales were $9 million, up 13% year over year.

Looking ahead, Estée Lauder expects fiscal 2023 net sales to grow 3%-5% year over year. Estee Lauder also expects net sales to decline by 8%-10% year over year in the first quarter of fiscal 2023.