Estée Lauder sees sales drop 11%
The Estée Lauder Companies has reported an 11% decrease in net sales to £3.4 billion ($3.93 billion) for the first quarter ending 30 September 2022.
Organic net sales fell 5%, in line with the company’s expectations, despite pressures which intensified as the quarter progressed.
Estée Lauder said that COVID-19 restrictions in China presented a greater challenge than expected, with limited travel retail and brick-and-mortar operations.
These challenges were offset by several markets in Asia/Pacific, as well as emerging and developed markets in the West, which delivered strong organic net sales growth.
The fragrance and haircare divisions rose double digits organically, whilst skincare was "most challenged" by the COVID-19 restrictions in China.
All 13 brands grew organically, with highlights from MAC Cosmetics in makeup, La Mer in luxury skincare, Jo Malone London in fragrance and Aveda in haircare.
Fabrizio Freda, President and CEO of The Estée Lauder Companies, said: “For the first quarter, we delivered organic sales in line with our outlook, even as the transitory external pressures of COVID-19 restrictions in China, high inflation globally and a strong US dollar intensified. Our multiple engines of growth strategy empowered us to seize prevailing growth opportunities amid the complexity."