Estée Lauder sees Q3 sales decline, despite growth in UK - Indoors Beauty

Estée Lauder sees Q3 sales decline, despite growth in UK

Estée Lauder sees Q3 sales decline, despite growth in UK

The Estée Lauder Companies has reported a 12% lower in sales to £2.9 billion ($3.75 billion) for the third quarter ending 31 March 2023, let down by general skincare and make-up sales. 

Sales declined 24% in the EMEA area, however elevated in the UK. This was pushed by The Ordinary, Estée Lauder and Clinique.

Overall skincare sales dropped 20% to £1.5 billion ($1.9 billion), reflecting the slower than anticipated restoration of journey retail in Asia. Sales declined at La Mer, Estée Lauder and Dr Jart+, however have been offset by growth from The Ordinary and MAC Cosmetics.

Makeup sales decreased 2% to £800 million ($1 billion), with declines from Estée Lauder, partially offset by growth from MAC Cosmetics, Clinique and Tom Ford Beauty.

However, perfume sales grew 1% to £468 million ($585 million). This was helped by growth in each area, in addition to the Tom Ford Beauty, Le Labo and Estée Lauder manufacturers.

Haircare sales additionally elevated 1% to £119 million ($149 million), reflecting growth from The Ordinary’s haircare merchandise, partially offset by a decline from Aveda.

Outlook

The group expects natural web sales to return to growth in the fourth quarter, reflecting the continued momentum of post-pandemic restoration growth in almost all markets. However, sales are anticipated to lower between 12-10% for the full-year.

Fabrizio Freda, President and CEO of The Estée Lauder Companies, mentioned: “In the context of 1 / 4 which we anticipated to be difficult, we’re happy to have delivered the high-end of our outlook for the third quarter. Our developed and rising markets grew strongly and exceeded our expectations to offset a fair slower-than-expected restoration in Asia journey retail.

“While we work by means of the intense however we consider short-term headwinds dealing with Asia journey retail, we’re inspired by the sturdy momentum in the remainder of our enterprise. Indeed, client demand is powerful for our various portfolio of manufacturers in developed and rising markets around the globe, which drives our confidence in the long-term.

“What is extra, we’re thrilled to have acquired the Tom Ford model and are optimistic about its promising growth alternatives.”

Last week, The Estée Lauder Companies accomplished its acquisition of Tom Ford, making it the only proprietor of the model and all its mental property. The $2.8 billion deal was beforehand introduced in November final 12 months.

As a part of the acquisition, Estée Lauder will proceed to handle Tom Ford’s cosmetics and perfume companies. It has been creating magnificence and perfume for the Tom Ford model since 2006 when the Texan designer branched out underneath his personal identify, having beforehand been Creative Director at Gucci and Yves Saint Laurent.

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