Estée Lauder reports record year
Strong sales growth in every region and product category
The Estée Lauder Companies Inc (ELC) today reported a solid financial performance for the fourth quarter and record results for the fiscal year ended 30 June 2011. Net sales for the year were up 13% at $8.81bn; excluding the impact of foreign currency translation, net sales increased 12% from a year ago. Net earnings for the year were $700.8m, compared with $478.3m last year.
Excluding returns and charges in fiscal 2011 and 2010, net sales for the year ended 30 June 2011 increased 13% to $8.81bn and net earnings rose to $742.5m. Diluted net earnings per common share rose 34% to $3.69.
"Fiscal 2011 was an outstanding year for our Company,” said Fabrizio Freda, president and ceo. “We achieved record sales, gross margin, operating margin, earnings per share and operating cash flow. These results confirm that our strategy is working and has allowed us to reach our original 13% operating margin target two years earlier than anticipated.
"We made significant progress executing our strategy and we expect to continue to benefit from the many initiatives we are implementing, along with a more strategically focused approach to spending. We had strong sales growth in every geographic region and product category, and notably we recorded the best performance in North America in a decade, including excellent department store results. Our Company also established market leadership in China in prestige, and in the important fast growing travel retail channel the Company became the leader in skin care.
"In fiscal 2012, we will continue to do what has been successful: focus our creative ingenuity on the biggest product ideas and marketing opportunities, improve our High-Touch services, aggressively pursue growth in emerging markets and distribution channels and invest in our strategic modernisation initiative. We have strong momentum that we will support with higher investment spending, and intend to continue to gain share globally and increase profitability. Based on our conviction in our strategy and long-term outlook, we are extending our financial goals to fiscal 2014 and raising our operating margin target to between 14.5% and 15%."