Estée Lauder Companies Net Sales Near $4.4B in Q1

The Estée Lauder Companies Inc. on Tuesday (Nov. 2) announced its fiscal 2022 first-quarter net sales, for the three-month period ending Sept. 30, 2021, were $4.39 billion, up 23% from the $3.56 billion net sales from the first quarter of fiscal 2021.

That jump is largely attributed by executives to shoppers being more willing and able to shop in brick-and-mortar shops this year than they were in the early months of the COVID-19 pandemic.

Organic net sales increased 18% for the first quarter of fiscal 2022 for Estee Lauder, which saw net earnings jump from $523 million in the first quarter of fiscal 2021 to $692 million in Q1 of fiscal 2022.

“We delivered excellent performance to begin fiscal 2022, despite the increased volatility and variability globally during the quarter, by virtue of our dynamic multiple engines of growth strategy. Our growth engines increasingly diversified, as we expected,” President and Chief Executive Officer Fabrizio Freda said in the company’s quarterly earnings report.

“Makeup, developed markets in the West, and brick-and-mortar reignited and complemented momentum in Skin Care, Fragrance, mainland China, Travel Retail in Asia/Pacific, and global Online,” he said. “Impressively, relative to the pre-pandemic first quarter of fiscal 2020, the overall business is much bigger and more profitable.”

Thirteen Estee Lauder brands hit double-digit organic sales growth in the first quarter of fiscal 2022 compared to the same time one year ago, with Estée Lauder and M·A·C leading Makeup’s growth and La Mer and Clinique performing well in the Skin Care segment of the business. Fragrances were up double-digits in every region, led by Tom Ford Beauty and Jo Malone London.

“Our confidence in the long-term growth opportunities for global prestige beauty and our Company is reflected in the announcement today to raise the quarterly dividend,” said Freda.

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While Estee Lauder’s financial performance continues to grow, the overall health and personal care market dipped slightly in September, with a 1.4% decline in sales in stores in that sector during the month, according to the U.S. Commerce Department, even with overall retail sales overall up 0.7%.