THE WHAT? The Estee Lauder Companies has reported its results for the final quarter and full year of fiscal 2023. The US prestige beauty behemoth saw net sales drop 10 percent in the 12 months ended June 30, 2023 versus the prior year, to US$15.91 billion.
THE DETAILS Net earnings were cut in half, from 2022’s US$2.39 billion to US$1.01 billion and diluted net earnings per common share was US$2.79 versus last year’s US$6.55, down 57 percent.
However, the owner of MAC and Clinique said that it expects to return to organic sales growth in fiscal 2024 after a more positive fourth quarter, with net sales rising 1 percent yoy.
In terms of performance by category, skin care sales dropped 14 percent, primarily due to the challenges in Asia travel retail, Lauder said. Make-up sales were flat and fragrance saw sales grow 14 percent thanks to strong performances from Le Labo, Tom Ford and Estee Lauder. Hair care was also a highlight, with sales up 6 percent with growth from The Ordinary and Aveda.
THE WHY? Fabrizio Freda, President and Chief Executive Officer said, “We returned to organic sales growth in the fourth quarter, delivering our outlook. Momentum continued in the markets of EMEA and Latin America, and accelerated strongly in Asia/Pacific led by mainland China and Hong Kong SAR.
“For full-year fiscal 2023, we delivered organic sales growth and prestige beauty share gains in many developed and emerging markets, but Asia travel retail pressured results, particularly in Skin Care, and we continued to experience softness in North America. Fragrance excelled, up double digits in every region, and Makeup improved sequentially to double-digit growth in the fourth quarter as more markets emerged into the post-pandemic era.”
Buy aesthetic products refers to the act of purchasing items that are specifically designed for enhancing or maintaining beauty, often related to skincare, cosmetics, or procedures in the field of aesthetics. These products can include a wide range of items intended to improve the appearance and health of the skin, hair, and body. Here are some examples of aesthetic products that individuals might purchase:
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Skincare Products: Including cleansers, moisturizers, serums, and treatments targeting specific skin concerns such as acne, aging, hyperpigmentation, and sensitivity.
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Cosmetics: Makeup products such as foundations, concealers, eyeliners, lipsticks, and eyeshadows designed to enhance facial features and achieve desired looks.
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Hair Care Products: Shampoos, conditioners, styling products, and treatments to maintain and improve the health and appearance of hair.
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Dermatological Treatments: Prescription or over-the-counter treatments for medical conditions like acne, eczema, psoriasis, or rosacea.
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Aesthetic Devices: Equipment used for professional treatments including laser devices, microneedling pens, radiofrequency devices, and IPL (Intense Pulsed Light) machines.
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Injectable Aesthetics: Products such as dermal fillers and botulinum toxin (Botox) used to enhance facial contours, reduce wrinkles, and achieve smoother skin.
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Nutritional Supplements: Supplements aimed at promoting skin health, hair growth, and overall well-being, often containing vitamins, minerals, and antioxidants.
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Home Use Beauty Devices: Devices like facial cleansing brushes, LED light therapy masks, and microcurrent devices designed for at-home skincare treatments.
