US cosmetics giant Estée Lauder has reported annual financial slightly below consensus expectations. For the full fiscal year 2014-2015 ended June 30, 2015, the company’s net sales decreased by 2 per cent (USD 10.78 billion compared to USD 10.97 billion in 2014) and the net earnings dropped by 10 per cent to USD 1.089 billion, compared to USD 1.203 billion in 2014.
The group’s results were negatively impacted by a strong US dollar along with weaker sales for some products. However, the group said that the previous fiscal included the effect of accelerated retail orders which created an unfavourable comparison with the fiscal year 2015 fourth-quarter results.
Skin care sales were the most affected, decreasing by 6 per cent, followed by fragrances (-1 per cent), while makeup sales grew by 2 per cent and hair care by 3 per cent.
« While fourth quarter revenues and full year guidance fell below expectations, the company showed solid performance in most areas of its business. Aside from the weaker skin care demand, the company showed strong results in make-up and hair care. Furthermore, declines in some of its skin care lines were partly offset by increases in other, newer skin care products sold by the company, » commented James Chen, senior market analyst at City Index. « Overall, these financial results provided an indication of Estée Lauder’s strength despite a strong dollar, as well as a sustained and robust demand for beauty products on a global basis, » added Chen.