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Bloomberg
Estee Lauder Cos.’s online sales and China push are helping maintain its growth streak.
The New York-based seller of Clinique and Aveda products saw sales surge across most of its brands in the latest quarter, with skin care, makeup and fragrances all posting double-digit gains. Revenue advanced on a regional level too, led by a 33 percent climb in Asia Pacific. Online sales—an area of increasing importance for cosmetics companies—also rose.
“In the holiday season, our brands achieved outstanding results from their e-commerce businesses, and customisable gift options were
significant contributors,†CEO Fabrizio Freda said.
Estee Lauder has profited from higher demand for fragrances and premium cosmetics and capitalised on a growing Chinese market, helping it outpace rivals and reward investors. Its acquisition of millennial-friendly brands and quick adaptation of digital technology to boost online performance have helped revenue accelerate for five straight quarters.
The company announced a series of charges related to the US tax overhaul, including a provisional $325 million related to past foreign earnings that haven’t been repatriated to the US It also expects two separate tax-related charges totaling about $69 million.