Estée Lauder Companies sales down -11% in the first quarter of its fiscal 2023.


The beauty group started its financial year with a drop in turnover, penalized by health restrictions in China.

-15% net sales in Asia-Pacific.

Estée Lauder Companies – Clinique, La Mer and Jo Malone – began their 2023 financial year under pressure. The turnover of the firm from July to September was established at $3.93 billion, compared to $4.39 billion over the same period last year. A drop in sales of -11% resulting in a drop in net profit of -29%, i.e. $489 million.

This slowdown in growth was notably correlated to the health situation in China, between confinement and closing of stores. The country experienced a decrease in net sales, having strongly impacted the rest of the Asia-Pacific region – -15% – and this, despite good results in the other territories.

flagship marketEstee Lauder Companies, EMEA reported revenue of $1.68 billion, down -10%. The group’s emerging zones, such as India – which hosted a beauty incubator -, the Middle East and Turkey, as well as certain countries developed by the firm such as Spain, Italy and Germany, have however had strong sales.

Finally, and with revenues increased to $1.12 billion, America’s growth was down -6%.

Reduced skincare and make-up.

While the group should soon include Balmain’s beauty license within its brand portfolio, the skincare and make-up segments respectively fell -14%, to $2.1 billion, and -10%, to $1 billion.

Within the skincare department, the net sales declines of Estée Lauder, which is continuing to establish itself on the Web3 between NFT’s and metaverse, as Dr.Jart+ and Origins impacted results, despite growing revenues from La Mer, Bobbi Brown and The Ordinary. Same story for the make-up category with sales decreases at Estee Lauder and Tom Ford Beauty.

In addition to skincare and make-up, fragrances ended the quarter with sales almost equivalent to last year. Luxury and artisanal essences contributed to the stability of revenues, embodying the ever-increasing appeal of prestige perfumes.

Haircare sales increased by +7%.

A reassessed 2023 financial year.

While Estée Lauder Companies was unable to present a strong growth revenue set, the second quarter should also experience a slowdown, evaluated between -17% and -19% by the group. Although the multinational remains “optimism about long-term growth opportunities” of its brands, as indicated by Fabrizio Freda, President and CEO, the company lowered its forecast for its 2023 fiscal year, expecting a decrease in net sales of -6% to -8%.


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