1. News
August 20, 2021

Estée Lauder reports increase in full-year net sales

The company expects reported net sales to increase between 17% and 19% in first quarter 2022.

Estée Lauder has reported its full-year net sales increased 13% to $16.22bn from $14.29bn in the prior-year period and grew 11% on a constant currency basis.

The company’s net earnings were $2.87bn against $0.68bn last year and diluted net earnings per common share (EPS) was $7.79 from $1.86 in the prior-year period.

Adjusted diluted EPS increased 57% to $6.45 and grew 54% in constant currency.

Estée Lauder president and chief executive officer Fabrizio Freda said: “We delivered outstanding results in fiscal 2021, capped by an exceptional fourth quarter and powered by our multiple engines of growth strategy, as well as the timeless desirability of prestige beauty.

“Notably, both sales and profitability meaningfully exceeded fiscal 2019 performance. Amid the challenges of the pandemic, we invested in near-term and long-term growth opportunities and managed costs elsewhere with discipline while making important progress on our social impact commitments and sustainability goals.

“Our growth engines of skincare, luxury and artisanal fragrance, Asia/Pacific, travel retail in Asia/Pacific, and global online performed exceptionally well. Innovation soared and eight of our brands grew sales double-digits, led by Estée Lauder, La Mer, and Jo Malone London.”

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During the fourth quarter, sales increased 62% to $3.94bn compared with $2.43bn last year.

The company’s net income was $1.02bn, while its diluted EPS was $2.76 in the quarter.

For full-year fiscal 2022, the company expects its effective tax rate to return to approximately 23%.

It also expects net sales to increase between 13% and 16% and diluted EPS to be between $7.04 and $7.26.

In May 2021, Estée Lauder closed the first phase of increasing its investment in the Canadian vertically integrated multi-brand company DECIEM.