INDUSTRY NEWS
ESTÉE LAUDER ON TRACK FOR RECORD YEAR WITH STRONG Q3 RESULTS The prestige beauty category is in overdrive worldwide. The Estée Lauder Companies (ELC) have posted double digit growth in its third quarter. Global net sales rose 10 per cent to US$4.25 billion - up from US$3.86 billion for the same period last year. Every major category fuelled the booming bottom line. Global fragrance sales soared 28 per cent to US$579 million as the standout performer. Skincare sales rose 6 per cent to US$2.595 billion and makeup spiked 9 per cent to US$1.14 billion. Haircare was another double digit growth sector, rising 15 per cent to US$147 million. ELC President and CEO, Fabrizio Freda, emphasised the outstanding result. “We delivered strong sales growth and better-than-expected profitability in the third quarter of fiscal 2022 in the face of accelerated headwinds as the quarter evolved, ELC President and including Covid restrictions in the CEO Fabrizio Freda. Asia-Pacific region.”
LVMH owns luxury beauty and fragrance brands such as Fenty Beauty by Rihanna
EMEA (Europe, Middle East, Africa) remained the largest regional market for ELC with a 17 per cent increase in sales in Q3 to US$1.99 billion. Revenues in the Americas surged 15 per cent to US$1.053 billion. But Covid restrictions in many Chinese provinces had a dampening effect on the Asia-Pacific region, driving sales down 4 per cent compared to the same quarter in 2021 to US$1.203 billion. Eleven of ELC’s brands enjoyed double digit growth, added Freda, including M.A.C, Estée Lauder, Jo Malone London, Tom Ford Beauty and Bobbi Brown. Increased in-store traffic flow, notably in speciality stores such as Ulta Beauty and Sephora boosted very strong growth. “We expect to deliver a record year in fiscal 2022,” said Freda. “We are confident that our business in China will rebound when Covid-19 abates.” The confidence is well-placed. For the nine month period to date ending March 31st, ELC posted net sales of US$14.2 billion. An increase of 15 per cent over the same period in the previous financial year.
PUIG POSTS SALES OF $3.77 BILLION IN 2021 Puig have bounced back strongly from the Covid-19 pandemic. The Spanish fashion, fragrance and makeup multinational is the parent company and licensee of major brands including Charlotte Tilbury makeup, Carolina Herrera, Paco Rabanne and Jean Paul Gaultier fragrances. It is the fifth largest fragrance maker in the world, representing 10 per cent of worldwide sales. The company’s 2021 revenues reached 2.6 billion euros (AU$3.77 billion) - an increase of 68 per cent by contrast to 2020 and 27 per cent compared to 2019. In 2018, Puig outlined a master plan to achieve 3 billion euros (AU$4.38 billion) in global sales by 2023. The company has revised that forecast after last year’s buoyant results, saying the target is on track to be reached by the end of this year. In 2021, global fragrance hits including Phantom by Paco Rabanne and Scandal Pour Homme by Jean Paul Gaultier pushed up fragrance sales by 41 per cent compared to 2020. Carolina Herrera’s Good Girl also enjoyed solid growth, as did niche juices from Penhaligon’s, L’Artisan Parfumeur and Christian Louboutin. Puig acquired a majority stake in Charlotte Tilbury in 2020, valuing the cult favourite at US$1 billion. 2021 was the first year the brand was integrated into the multinational’s stable and helped to fuel a 153 per cent increase in makeup sales, notably in the US and China. The company also consolidated its skincare brands, including Uriage and Apivita, into a new Derma Division and the strategy has paid off handsomely. A surge in sales in Europe and Asia 24| RETAIL BEAUTY WINTER 2022
Puig acquired a majority stake in Charlotte Tilbury in 2020.
resulted in double digit growth for Puig’s skincare portfolio to 274 million euros (AU$401.5 million). Net revenues in the US, the world’s largest single beauty market, rose 104 per cent to become Puig’s largest regional market. Sales in China increased by 212 per cent over 2020. The EMEA (Europe, the Middle East and Africa) also experienced a major boon, rising 60 per cent as leading markets recovered. E-commerce revenues were another highlight in 2021, rising to 28 per cent of Puig’s total worldwide sales. Puig products are sold in 150 countries, including Australia. The multinational plans to expand its online business, double down on its efforts in China and Asia and ride the wave of travel retail’s global recovery to triple its 2020 revenues by 2025.
