Estée Lauder's turnover drops

Estée Lauder's turnover drops

For the first time in three quarters, American cosmetics firm Estée Lauder saw its net turnover drop. The strong dollar had a huge impact, but the demand for its skin care products also dropped overall.

Strong impact from exchange rates

Estée Lauder's net turnover dropped 7.4 % to 2.52 billion dollars (2.3 billion euro), with make-up sales down 3.7 % to 1.02 billion dollars (920 million euro) for the quarter. Excluding exchange rate fluctuations, there would have been a 3 % turnover increase. Skin care products performed even worse, as sales dropped 16 % to 1.01 billion dollars (910 million euro), which would still have been a 9 % drop if exchange rates are excluded.


In the fourth quarter, Estée Lauder's profit dropped from 257.7 to 153 million dollars (140 million euro), resulting in 40 cents per share. Analysts had predicted only 34 cents per share for a 2.57 billion dollar (2.32 billion euro) turnover.


For its current quarter, Estée Lauder expects a 13 to 14 % turnover increase, prior to exchange rate fluctuations, and for its full fiscal year, the company hopes to get an 8 to 10 % turnover increase. Profits should follow similar lines, which is well below analyst profit growth expectations at 16 %.

Questions or comments? Please feel free to contact the editors

Unilever interested in Estée Lauder


Increasing rumours say that cosmetics company Estée Lauder may be up for sale and that there are a number of interested parties, including L’Oréal and Unilever.

Sephora launches smaller store formula


Cosmetics manufacturer Sephora launched a smaller store formula in the United States. Up until now, it had focused on large stores, but has now turned its attention to smaller stores.

Brazilian takeover of The Body Shop confirmed


L’Oréal has officially confirmed the sale of its British subsidiary The Body Shop to Brazilian Natura Cosméticos. The deal was signed this week, is estimated to be worth 1 billion euro and should be finalized before the end of the year.

AS Watson wants to acquire Holland & Barrett


AS Watson, Kruidvat’s parent company, has entered negotiations to acquire Holland & Barrett. It is apparently willing to pay one billion pounds (1.15 billion euro).

Estée Lauder doubles Victoria Beckham product range


Things are going very smoothly for Estée Lauder and Victoria Beckham. Their first two “limited collections” sold out instantly and that is why the former Spice Girl will create a third collection.

Brazilian competitor on the verge of The Body Shop acquisition


French L’Oréal has entered exclusive negotiations with Brazilian Natura Cosméticos to sell store chain The Body Shop, in a deal that should be worth a billion euro.

Back to top