The Estée Lauder Companies Inc. reported strong financial results for its fourth quarter and fiscal year ended June 30, 2018. For the three months ended June 30, 2018, the Company reported net sales of $3.30 billion, a 14% increase compared with $2.89 billion in the prior-year period. According to its report, growth in most brands as well as across-the-board gains occurred in all geographic regions and product categories and net sales increased in several developed and emerging markets, reflecting especially strong growth from the travel retail, online and specialty-multi channels.
“Sales climbed in virtually all our brands and we hit milestones along the way,” shared Fabrizio Freda, President and Chief Executive Officer. “Among the top four brands, our flagship Estée Lauder brand achieved record global sales and grew 22% 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 M•A•C and Clinique globally.” During the fiscal year the company generated higher sales globally, which he attributed to “investing in our hero franchises, fast-growing channels and digital and social media.”
However, the American/Chinese tariff war does present concern. While fewer than one-third of Estée Lauder’s products sold in China come from the United States, many of those sold in here use Chinese components. Estée Lauder executives indicated on Monday’s earning’s call that the company was “doing (its) best” not to increase prices in the face of higher tariffs. “Beauty is not a category of tension and represents benefits for all countries,” Freda assured investors.