The initiative is expected to boost sales anywhere from $200-300 million before taxes. At the same time, the company will invest in new products, social media, communications and other forms of advertising. Leading Beauty Forward is expected to reduce costs, reduce the company’s brand and restructure corporate functions. Those results are good, but they aren’t strong enough to stop Estée Lauder from implementing Leading Beauty Forward, a cost-saving plan that calls for a 2.5% cut in staff, or about 900-1,200 positions. Meanwhile, makeup sales surged nearly 9% to more than $3.5 billion, fragrance sales gained 7% to $1.1 billion and hair care sales rose 5% to $410 million. But even that decline was minimal as sales dipped less than 1% to $3.4 billion. Skin care was the only category to slip through the first three quarters of fiscal 2016. By region, the Americas accounted for 42% of sales, with Europe the Middle East and Africa at 38% and Asia/Pacific 20%.įor the nine months ended March 31, sales rose 4% to $8.6 billion and net earnings rose 9% to more than $1 billion. ![]() Estée Lauder, they argue, has the brands and the formulas to appeal to both age groups.īy product category, skin care accounted for 42% of sales, followed closely by makeup (40%), fragrance (13%) and hair care (5%). Hair care sales increased 3% to $530 million.ĭespite the overall sales decline, company executives are confident about the future, noting that global prestige beauty trends will be shaped by two demographic groups-Millennials (15 to 35) and Ageless Consumers (50+). The good news? Makeup sales rose 2% to $4.3 billion driven by high demand for lipstick as well as the ongoing strength of the Tom Ford and Smashbox brands. Fragrance sales fell as well, dipping 1% to $1.4 billion, but that decline was blamed entirely on currency fluctuation. The company blamed the decline on lower sales of Estée Lauder and Clinique products, which were partially offset by gains at LaMer. The decline was due, in large part, to disappointing skin care sales, which fell 6% to $4.4 billion. But by that measure, 2015 was a disappointing year for the company, as corporate sales fell nearly 2% in fiscal 2015-in contrast, prestige beauty sales rose 8% in Europe, 14% in North America and 26% in South America, according to NPD Group data. That goal and others like have enabled Lauder to grow to nearly twice the size of its nearest competitor. To be launched: Victoria Beckham color cosmetics, Selena makeup collection.Ĭomments: One of Estée Lauder’s goals is to stay ahead of the competition if the prestige beauty market is growing, say, 4-5% a year for the next few years, then Lauder is gunning for 6-8% top line growth. Acquisitions: Rodin olio lusso, Le Labo, Editions de Parfums Frédéric Malle and GlamGlow. Aerin-Rose de Grasse Jo Malone-Wood Sage & Sea Salt Michael Kors-Gold fragrances Aveda-Tulasara skin care. Clinique Sonic System Purifying Cleansing Brush, Clinique Smart custom-repair serum, Clinique Pop Lip Color and Primer, Beyond Perfecting foundation and concealer, and Chubby Stick sculpting products Origins-Original Skin. New Products: Estée Lauder-Advanced Night Repair Concentrated Recovery PowerFoil Mask, Advanced Night Micro Cleansing Foam, Advanced Night Micro Cleansing Balm, Nutritious Vitality 8 Radiant Energy Lotion, Genuine Glow priming moisture balm and eye balm, Revitalizing Supreme Light global anti-aging crème oil-free, New Dimension firm + fill eye system, New Dimension tighten + tone neck/chest treatment, New Dimension plump + fill expert lip treatment Pure Color Envy lipstick and eyeshadow Estée Edit by Estée Lauder. Prestige and Makeup Artists-Estée Lauder, Bobbi Brown, La Mer, Tom Ford, MAC, Prescriptives, Jo Malone, Smashbox, Clinique, Origins, Glamglow, Ojon Fragrances-Aramis, Tommy Hilfiger, Kiton, Donna Karan, Michael Kors, American Beauty, Flirt!, Coach, Ermeneglido Zegna Skin Care-GoodSkin, Grassroots, Lab Series Salon and Pharmacy-Aveda, Bumble and Bumble, Darphin, Dr. Major Products: Cosmetics, toiletries and fragrances. Trower, executive vice president, global communications. Travis, executive vice president and chief financial officer Alexandra C. ![]() Polcer, executive vice president, global supply chain Cedric Prouvé, group president, international Tracey T. Moss, executive vice president and general counsel Michael O’Hare, executive vice president, global human resources Gregory F. ![]() ![]() Lauder, chairman, Clinique Laboratories William P. Key Personnel: Fabrizio Freda, president and chief executive officer John Demsey, executive group president Carl Haney, executive vice president, global research & development, corporate product innovation, package development Leonard A. Sales: $10.7 billion for the year ended June 30, 2015.
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