Retail News CRM

Tag: Clinique

  • Estee Lauder Hong Kong, China show good numbers

    Estee Lauder Hong Kong, China show good numbers

    Cosmetics giant Estee Lauder says it achieved sales growth in every global market last financial year, led by strong double-digit increases in China and Hong Kong.

    Every single category posted growth as well.

    Globally, Estee Lauder sales reached $13.68 billion, a 16 per cent increase on last year.

    Operating income of $2.05 billion, was up 21 per cent from the prior year, while net earnings of $1.11 billion, was down 11 per cent.

    President and CEO Fabrizio Freda said the results reflect, in part, the company’s strategy to drive growth by targeting its investments to shifts in consumer and market dynamics across product categories, geographic regions, brands and distribution channels. That strategy positioned the company well for the resurgence in global prestige skin care growth as well as the strong increase in demand among Chinese consumers.

    “Sales climbed in virtually all our brands and we hit milestones along the way. Among the top four brands, our flagship Estee Lauder brand achieved record global sales and grew 22 per cent in constant currency, demonstrating the amazing equity of the brand. La Mer became the fourth brand in our portfolio to contribute well over $1 billion in net sales, and we increased sales at Mac and Clinique globally.”

    He said product innovation and creativity were strong across brands and boosting investment in digital advertising helped accelerate sales growth.

    Freda concluded: “In fiscal 2019, we will continue to create products that appeal to a more diverse and growing middle class around the world.”

    Lees ook:

  • Tax changes lower Mainland cosmetics prices

    Tax changes lower Mainland cosmetics prices

    China’s new import tax regime has enabled cosmetics giants AmorePacific and Estee Lauder to lower their prices in China by up to 30 per cent.

    AmorePacific’s China division says it will reduce Mainland cosmetics prices for 327 lines under the brands of Etude House, Innisfree, Laneige and Sulwhasoo by 3 to 30 per cent from January 15.

    US rival Estee Lauder has confirmed immediate price cuts for more than 300 lines in China, including its namesake label, Bobby Brown, Clinique, Jo Malone, and Mac by as much as 18 per cent.

    This follows Beijing’s move last year to slash its hefty duties on imported cosmetics in an effort to boost domestic consumption, according to AmorePacific, which has its headquarters in Seoul.

    “These global cosmetics names are now narrowing the price gap between China and overseas, and we believe more are probably about to follow suit,” says China Market Research Group director Ben Cavender, noting that with western brands becoming cheaper in the mainland, people may be discouraged from travelling to Hong Kong to make purchases.

    Imported cosmetics previously faced tariffs of 84 per cent, reflecting both import and point-of-sales taxes. The tariffs have now gone down to 29 per cent for most beauty products.
    Before the tariff reduction, many mainland consumers shopped via cross-border online marketplaces or while travelling abroad.

    Lees ook:

    Lees ook:

  • Hong Kong mars Estee Lauder Asia result

    Hong Kong mars Estee Lauder Asia result

    Beauty giant Estee Lauder says its Asian sales rose in every country except Hong Kong in the last quarter.

    Estee Lauder Asia achieved double-digit growth in Korea, Japan, Australia and Taiwan and achieved “solid” constant currency sales gains in China and Thailand.

    “The higher sales in China reflected sales gains in most brands due to continued distribution expansion and increased online activity,” the company said in an earnings statement.

    “In Hong Kong, the reduction in tourism from China continues to negatively impact business, particularly for the Estee Lauder, Clinique and La Mer brands. The company remains cautious of the near-term slower growth there.”

    Foreign currency translation unfavorably impacted reported sales by 5 per cent with the largest impact affecting China, Korea and Australia.

    In Asia-Pacific, operating income decreased, with lower results reported primarily in Hong Kong and China.

    “The lower results in Hong Kong were primarily due to the lower sales, and in China were attributable to increased marketing, selling and store operations costs. These lower results were partially offset by higher operating income in Japan and Singapore,” the company said.

    In its outlook for the full 2016 year, now nine months complete, Estee Lauder said it expects the global prestige beauty market  to continue to generate solid growth.

    “However, volatility and economic challenges are expected to continue to negatively impact Hong Kong and some emerging markets challenged by weak currencies. The company’s growth has outpaced global prestige beauty and is expected to continue growing faster than the industry, demonstrating the company’s ability to successfully navigate volatility. The company expects to increase targeted investment spending in the fiscal 2016 fourth quarter compared with the prior year, behind areas with good momentum or with opportunities for share gains, as well as in capabilities to sustain future growth.”

    Globally, net sales for the company’s third quarter to March 31 totalled US$2.66 billion, a 3 per cent increase compared over the $2.58 billion in the prior-year quarter. Net earnings were $265.6 million, down on the $272.1 million of last year.

    Meanwhile, Estee Lauder has revealed plans to save between $200 million and $300 million a year through a series of job cuts, retraining and restructuring initiatives.

    Lees ook:

  • Estee Lauder to axe up to 1200 jobs

    Estee Lauder to axe up to 1200 jobs

    Beauty giant Estee Lauder has announced a multi-year initiative named Leading Beauty Forward to build on its strengths and better leverage its cost structure to free resources for investment to continue its growth momentum.

    The plan involves the reduction of between 900 and 1200 jobs – about 2.5 per cent of its workforce – and restructuring on a number of fronts aimed at saving US$250 million to $300 million in overheads.

    “Leading Beauty Forward is designed to enhance the company’s go-to-market capabilities, reinforce its leadership in global prestige beauty and continue creating sustainable value,” the company said in an announcement coinciding with its latest quarterly financial results.

    Globally, net sales for the company’s third quarter to March 31 totalled US$2.66 billion, a 3 per cent increase compared over the $2.58 billion in the prior-year quarter. Net earnings were $265.6 million, down on the $272.1 million of last year.

    Fabrizio Freda, president and CEO of Estee Lauder, said: “We are launching this initiative from a position of exceptional strength. With the aid of our 10-year compass, we are proactively anticipating long-term industry trends and positioning our brands in more promising and faster growing areas. Leading Beauty Forward should further position us better to continue winning on a complex global stage and generate savings to help sustain our long-term sales growth and margin progress.

    “This initiative is expected to provide further resources to invest in brand growth, increase speed-to-market and flexibility in resource allocation, and better leverage growth for continued profitability improvement,” he concluded

    Leading Beauty Forward will begin during the company’s current quarter. Specific initiatives are expected to be approved through to the end of the 2019 fiscal year and be complete by 2021. Key actions include:

    • Better leveraging growth through cost savings, more scalable processes and organisational design;
    • Redesigning select areas of the company’s go-to-market brand, region and affiliate organisations to strengthen capabilities in areas such as digital and retail;
    • Redesigning and restructuring select corporate functions that support the company’s brands, channels and geographies through the development of scalable global and regional shared services with a more efficient cost base;
    • Investing in brand growth, such as new products, social media, communications, in-store merchandising, point-of-sale activities and advertising.

    The company expects to take restructuring and other charges of between $600 million and $700 million, before taxes, consisting of employee-related costs, asset write-offs and other costs associated with implementing these initiatives.

    Estee Lauder said the job cuts will take into account the elimination of some positions, retraining and redeployment of certain employees and investment in new positions in key areas.

    Lees ook:

    Lees ook: