Shop pink: ELC's 2015 Breast Cancer Awareness Campaign products

October is Breast Cancer Awareness Month, and this year, The Estée Lauder Companies brings its beauty brands together for a unified stance against the killer disease. Through the sales of their Pink Ribbon products this month, 15 brands will be raising funds for education and medical research through the Breast Cancer Research Foundation (BCRF).

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Below is a roundup of some of the ELC products that you can purchase to help the fight against breast cancer:

1. Clinique Dramatically Different Moisturizing Lotion+. For every sale of the dermatologist-developed moisturizer, $10 will be donated to BCRF. This month, the moisturizer will come in a special edition package embellished with Clinique Signature Pink Ribbon key chain.

2. Bobbi Brown Peony Set. Pretty with a purpose, the set includes a silky powder blush in Peony and a Mini Face Blender Blush with a pink handle. For every purchase of the limited edition set, Bobbi Brown will donate $12 to the BCRF.

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3. Lab Series Skincare for Men Pink Pocket Square. Men, too, can show their support for the fight against breast cancer. For every Lab Series products purchase worth $50, they will receive a complimentary pink pocket square.

4. Jo Malone London Red Roses Cologne.. Jo Malone London will donate $45,000 to the BCRF. In addition, for each Red Roses 100ml cologne sold throughout October within the U.K., the company will donate 20 pounds (about $30) to the BCRF.

5. Tony Burch Lip Color. In support of Breast Cancer Awareness Month, Tory Burch created a limited edition golden and pink fretwork case for one of her favorite shades, Ramble on Rose. The brand will also allocate 20 percent of the retail price to the BCRF.

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The Estée Lauder Companies’ Breast Cancer Awareness (BCA) Campaign was founded in 1992 by the late Evelyn H. Lauder, mother of executive chairman William Lauder and was launched with the iconic Pink Ribbon, the universal symbol for breast health. Since then, the BCA Campaign has raised more than $58 million to support global research, education, and medical services. For more information about this year’s BCA Campaign, visit this page.

Thumbs up: A strong performance by the Estée Lauder Companies

Buoyed by its recent product launches and an expanding digital presence, Estée Lauder Companies reported strong performance in the third quarter. Net earnings for the period under review rose 28 percent year-on-year.

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President and CEO Fabrizio Freda attributed the group’s excellent showing to “compelling product innovation, targeted advertising and marketing investments, and selective distribution expansion.” For instance, the rollout of contouring kits from Smashbox and the MAC collection inspired by Disney’s Cinderella fueled sales growth. The performance of its legacy brands such as Estée Lauder and Clinique also boosted the company’s earnings.

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Meanwhile, the company noted that its robust online sales, especially in China, its third-biggest market after the U.S. and U.K., were huge contributions to its healthy third-quarter performance. Online services that helped expand the company’s digital presence are how-to-videos and live chats with beauty experts, mimicking those seen in traditional counters.

Its social media marketing efforts also paid off handsomely for ELC, thanks in part to the hiring of rising model Kendall Jenner as Estée Lauder’s brand ambassadress. Jenner provides a powerful online platform for Estée Lauder to launch new products and attract younger customers. The certified “instagirl” has a 30-millon strong following across social media sites Facebook, Instagram, and Twitter.

 

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Looking into the future, ELC is optimistic that its recent wave of acquisitions will result in a stronger market performance in the coming months. It is also banking on upcoming brand collaborations and product innovations to drive sales growth. It also expects its online sales to grow steadily, pegging a 30 percent overall increase this year.

Executive chairman William Lauder is the unseen hand behind Estée Lauder Companies’ strategic moves that keep the company on top of the global beauty market. Learn how prestige brands power ELC’s portfolio here.

REPOST: Higher Passenger Traffic From Asia-Pacific Should Bolster Estee Lauder Travel Retail Sales

Forbes analyzes how the growth in Asia-Pacific passenger traffic would drive the future of Estee Lauder Companies in the travel retail sector.

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In FY2013, prestige beauty product maker Estée Lauder reported sales of approximately $10.2 billion compared to $9.7 billion in sales in FY2012, a 5.2% increase. The company sells its products through various upscale departmental stores, specialty retailers, prestige salons and spas. In total, Estée Lauder estimates it has close to 30,000 points of sale within these distribution channels, generating sales of its beauty products across the world. Additionally, the company also markets its products through freestanding stores, duty-free and travel retail outlets worldwide, and also its own and other authorized retailer websites.

In this note, we provide an analysis of Estée Lauder’s travel retail business, underlining various factors that impact the division’s performance and its potential value contribution to overall top line for the company. We have a $75 Trefis price estimate for Estée Lauder, which stands at an 11% premium to its market price.

A Look At Estée Lauder’s Travel Retail Business

Travel retail sales for Estée Lauder increased to over $1 billion in FY2012, driven by the increase in global passenger traffic. For fiscal 2013, sales from the travel retail channel grew at thrice the pace of global passenger growth rate. According to data from the IATA, global passenger demand expanded 5.2% in 2013, from close to 3 billion passengers in 2012. This should put Estée Lauder’s travel retail sales growth rate at over 15% for fiscal 2013, to stand at approximately $1,156 million. Much of the 15% growth rate in travel retail comes from the sale of skin care products. As a percentage of overall revenue, this marks a sizable 11.4% contribution from the travel retail channel for Estée Lauder.

Asia-Pacific Passenger Traffic Growth Should Support Strong Travel Retail Expansion

A major factor for travel retail revenues standing at three times global passenger traffic is the combination of expanding disposable income in the Asia-Pacific region, along with strategic positioning of travel retail outlets by Estée Lauder. The main customer base for a travel retail outlet is the global passenger, and hence, positioning such outlets in high traffic corridors is key to having a higher growth rate.

International passenger demand is the highest for the Middle Eastern region at 12.1% in 2013. Similarly, emerging market regions of Latin America, Africa and Asia-Pacific registered growth rates of 8.1%, 5.5% and 5.3% respectively, in international passenger demand. Meanwhile, developed economies of Europe and North America had growth rates of 3.8% and 3% in international passenger demand. The Asia-Pacific region, in addition to outpacing passenger demand from developed economies, leads the world passenger traffic with a 29% share according to Airbus, followed by Europe and North America at 26% and 25% respectively.

Estée Lauder has capitalized on the strong demand for international travel from Asian customers and is the leading travel retailer in the Asia-Pacific market. By the end of fiscal 2012, the company had a total of 1,600 travel retail outlets worldwide. However, we believe a majority of these travel retail outlets to be situated in travel corridors popular among Asian customers, given their expanding discretionary wallet share. Going forward, the company could continue to establish itself as a strong travel retailer within the Asia-Pacific region by opening more stores.

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Travel Retail Investments Should Lead To Market Share Expansion For Estée Lauder

Going forward, Airbus expects domestic travel within China and India to drive overall Asia-Pacific passenger demand, with annualized growth rates of 7% and 10% respectively through 2032. In addition to strong domestic travel growth, international travel corridors (such as Intra Asia, Asia – Middle East, Asia – PRC and Central Europe – Western Europe) are expected to see a higher demand in passenger traffic than the global growth rate of 4.7% annually through 2032. This burgeoning demand surrounding the Asia-Pacific and Middle East regions should drive future investments into travel retail from cosmetics companies.

We expect Estée Lauder to increase its investments into the travel retail business in the future, driven by the higher revenue growth rate from the division. Through its travel retail channel, Estée Lauder has achieved a 15% top line growth rate compared to 4% for overall revenues in CY2013. Additionally, growth in travel retail is primarily resulting from the sale of skin care products. At the end of CY2013, we estimate Estée Lauder’s skin care market share to stand at approximately 7.6%. However, higher investments into travel retail should be able to drive future revenues and expand its skin care market share in the future.

William Lauder has been able to shape Estée Lauder Companies into a brand-building powerhouse that it is today with his leadership and unparalleled commitment to innovation and creativity. Click here for more updates on ELC's expansive portfolio.

REPOST: The Estée Lauder Companies Names Jane Lauder Global Brand President, Clinique

Jane Lauder's appointment as the Global Brand President of Clinique is part of Estée Lauder's organizational redesign efforts to drive the skincare brand's future success. The article offers an overview of Ms. Lauder's executive profile.

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NEW YORK--(BUSINESS WIRE)--The Estée Lauder Companies Inc. (EL) announced today that Jane Lauder has been named Global Brand President, Clinique. Succeeding Ms. Lauder will be Stephane de la Faverie who has been named Senior Vice President/Global General Manager, Origins, Ojon and Darphin. Their new roles will become effective on April 1, 2014.

Both Ms. Lauder and Mr. de la Faverie will report to Lynne Greene, Group President of Clinique, Origins, Ojon, Aveda and Darphin. As announced in 2012, Ms. Greene was promoted to Group President as part of an organizational redesign to further align brands and provide high potential leaders with increased opportunities. Appointing Ms. Lauder to Clinique supports this evolution and will enable Ms. Greene to focus on the strategic direction of her brand portfolio and her other significant leadership responsibilities.

“Lynne’s vision combined with her industry-leading creativity has propelled Clinique’s exceptional global results and her close partnership with Jane will enable Clinique’s future success. Jane’s new role reflects her proven talent as one of our Company’s valued business leaders and innovative thinkers. Her ability to take brands and help maximize their global potential has been a key driver in our Company’s success,” said Fabrizio Freda, President and Chief Executive Officer, The Estée Lauder Companies.

In addition to supporting the Company’s organizational evolution, this appointment was a natural move for Ms. Lauder who earlier in her career was Senior Vice President, Global Marketing for Clinique where she was responsible for the brand’s overall strategic marketing and helped take the brand into new markets. As a result of her success in this role, Ms. Lauder later became Global Brand President, Origins, Ojon and Darphin.

“Jane is a very driven and talented leader. With her deep knowledge of today’s global consumer, I am delighted to have her back on the Clinique team where I know she will be extremely successful in advancing the long heritage of innovation,” said Lynne Greene. “Stephane brings significant experience in multi-brand leadership and expertise in skin care. His track record demonstrates his strength in successfully growing smaller brands and taking them into new markets. I am confident that both Jane and Stephane will bring outstanding growth and leadership to their brands.”

“It is our people who make our Company great. As Jane and Stephane continue on their Estée Lauder Companies journey, we grow as a Company—leveraging their strengths to drive our success,” said William P. Lauder, Executive Chairman, The Estée Lauder Companies. “Both are terrific leaders who consistently recognize global opportunities and most of all, inspire their teams to deliver excellence.”

Mr. de la Faverie joined The Estée Lauder Companies in 2011 as Senior Vice President, Global General Manager, Aramis and Designer Fragrances; shortly thereafter Lab Series and GoodSkin Labs were added to his responsibilities. Since joining the Company, Mr. de la Faverie has helped grow Aramis and Designer Fragrances’ profitability and expand the Company’s designer fragrance portfolio. Throughout his tenure in the beauty industry, Mr. de la Faverie has worked to build a number of skin care brands. Most recently under his leadership, the men’s skin care brand, Lab Series, successfully launched several major innovations globally.

Mr. Freda said, “Stephane is an ideal person to build on the success from Jane’s prior leadership. His keen ability to think globally and act locally will help the Origins, Ojon and Darphin teams continue to focus on their fastest-growing opportunities.”

In November of 2012, William P. Lauder and Fabrizio Freda announced an organizational redesign to drive the Company’s future success by further aligning brands, ensuring focus on the greatest opportunities globally and creating growth for talent worldwide. The appointments announced today are a continuation of this organizational evolution.

The Estée Lauder Companies Inc. is one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products. The Company’s products are sold in over 150 countries and territories under the following brand names: Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, M•A•C, Bobbi Brown, Tommy Hilfiger, Kiton, La Mer, Donna Karan, Aveda, Jo Malone, Bumble and bumble, Darphin, Michael Kors, American Beauty, Flirt!, GoodSkin Labs, Grassroots Research Labs, Tom Ford, Coach, Ojon, Smashbox, Ermenegildo Zegna, Aerin Beauty, Osiao, Marni and Tory Burch.

An electronic version of this release can be found at the Company’s Website, www.elcompanies.com.

For William P. Lauder, executive chairman of The Estée Lauder Companies, success lies in one's ability to perform. Click here to learn how he was able to turn the cosmetics company into an $8 billion global enterprise by cultivating a culture of entrepreneurship and leadership excellence.