2013-09-16 10:02:29

Estée Lauder reported a strong financial performance for last fiscal year

2013-09-16 10:02:29

The Estée Lauder Companies Inc. reported a strong financial performance for its fourth quarter and fiscal year ended June 30, 2013. For the year, net sales increased 5% to $10.18 billion. For the three months ended June 30, 2013, it reported a 7% increase in net sales to $2.41 billion.
 
Fabrizio Freda, president and chief executive officer, said, “We concluded another outstanding fiscal year with a strong fourth quarter that saw high-single-digit sales gains and exceptional double-digit earnings per share growth. Fiscal 2013 marked another record year in which our company achieved a number of historic milestones: $10 billion in net sales, 15.2% operating margin and $1 billion in net earnings. We also delivered record earnings per share and operating cash flow.
 
This year, cccording to Fabrizio Freda, the company also advanced its strategic priorities, including enhancing our business in skin care, emerging markets and fast-growing distribution channels.“We expect our strong momentum to extend into fiscal 2014. We will support our sales growth by launching outstanding products, further penetrating fast-growing emerging markets, expanding our distribution in fast growing prestige channels and reigniting our fragrance category. Consistent with our strategy, we intend to support our business with targeted investments aimed at enhancing the global reach of our brands and further building long-term brand equity. Finally, we expect to benefit from the investments we’ve made in capabilities and technology. We believe all of these factors should enable us to grow local currency sales 6% to 8% and achieve constant dollar double-digit earnings per share growth this year, and help progress us towards reaching our new long-term operating margin target of 16.5% in fiscal 2016.”
 

During the fiscal year, sales growth was particularly strong in the company’s luxury brands, online and travel retail channels and overall in emerging markets, along with solid gains in several developed countries.
 
In fiscal 2014, the Company expects global prestige beauty to rise approximately 3-4%, reflecting continued weakness in certain Southern European countries and Korea. The Company continues to expect beauty market growth in the U.S. but at a slower pace than in fiscal 2013. For the full year 2014, net sales are forecasted to grow between 6% and 8% in constant currency.