4. Estée Lauder
New York, NY
www.esteelauder.com
Beauty sales: $7 billion

Key Personnel:

Leonard A. Lauder, chairman; Ronald S. Lauder, chairman, Clinique Laboratories; William P. Lauder, president and chief executive officer; Malcolm Bond, executive vice president, global operations; Patrick Bousquet-Chavanne, group president; Amy DiGeso, executive vice president, human resources; Cedric Prouve, group president, international; Philip Shearer, group president; Daniel J. Brestle, chief operating officer; Evelyn H. Lauder, senior corporate vice president; Harvey Gedeon, executive vice president, global research and development/corporate product innovation; Richard W. Kunes, executive vice president and chief financial officer; Sally Susman, executive vice president, global communications.

Products/Brands:

Skin care, makeup, fragrance and hair care marketed under brand names such as Estée Lauder, Clinique, Prescriptives, Aramis, Origins, M.A.C., La Mer, Bobbi Brown, Tommy Hilfiger, Donna Karan, Aveda, Jo Malone, Kate Spade, Bumble and Bumble, Darphin, Donald Trump The Fragrance, Missoni, Daisy Fuentes.

New Products:

Four fragrances: Sean John’s Unforgivable, Missoni, Daisy Fuentes and Dianoche. Skin care products including Resilience Lift Extreme Ultra Firming Cremes, and Re-Nutriv Ultimate Lifting Serum by Estée Lauder and Turnaround Concentrate Visible Skin Renewer by Clinique. High-Gloss Plump for Lips, Tender Lip Balm SPF 15, Double-Wear Stay in Place Shadow Stick, Bronze Goddess Bronzer, Idealist Pore Minimizing Skin Refinisher, Pleasures Delight Eau de Parfum Spray, Beautiful Love Body Lotion and Bath and Shower Gel.

Comments:

For the fiscal year ended June 30, Estée Lauder again had a good year with $7 billion in net sales, a 9% increase over 2006. The company reported 2007 net earnings of $448.7 million, compared with $324.5 million last year. William P. Lauder, president and CEO said he was “pleased with the progress made on our strategic imperatives in fiscal 2007,” and said the company had further expanded its fastest-growing brands.

Internationally, in fiscal 2007, the company grew in both established and emerging markets, and all geographic regions and all product categories reported gains. What’s more, each product category grew in each region. Sales also increased through alternative channels, such as the Internet, European pharmacies and direct response TV.

Aerin Lauder has her own fragrance.

Skin care, makeup, fragrance and hair care sales all increased. Net sales of skin care products hit $2.6 billion, fueled largely by Estée Lauder’s growth in Europe and Asia. Major contributors to this growth included several recent launches, such as Advanced Night Repair Concentrate Recovery Boosting Treatment by Estée Lauder and Repairwear Lift Firming Night Cream, Continuous Rescue Antioxidant Moisturizer and All About Eyes Rich from Clinique. The company’s rapidly growing La Mer brand and Resilience Lift Extreme Ultra Firming products by Estée Lauder, as well as the 3-Step Skin Care System from Clinique also helped to boost sales.

Makeup sales for the year rose to $2.7 billion, largely due to growth from the company’s makeup artist brands. Sales were also up on products such as Double Wear Foundation and the recent launch of Resilience Lift Extreme Ultra Firming Makeup SPF 15 from Estée Lauder, along with Full Potential Lips from Clinique.

Fragrance sales, which dipped in 2006, rose again to $1.3 billion. Much of the growth was reported in Europe, the Middle East and Africa. Asia/Pacific sales also grew, and there was a slight gain in the Americas, where competitiveness continues to cause challenges in the marketplace.

Contributors to growth in the fragrance category were the international launches of DKNY Red Delicious, DKNY Red Delicious Men and Pure White Linen by Estée Lauder, as well as continued solid growth of Sean John Unforgivable. Sales were down on certain existing fragrances, such as True Star and True Star Men from Tommy Hilfiger and Estée Lauder Pleasures.

Sales of hair care products increased to $377 million, due largely to higher sales at Aveda and Bumble and Bumble. Aveda net sales growth was primarily due to sales of professional color products, the launch of Be Curly shampoo and conditioner, and the acquisition of a distributor. Higher sales at Bumble and Bumble resulted from a new hotel amenities program, growth in existing salon distribution and new points of distribution.

Aveda provides a boost to Lauder’s bottom line.

Earlier this year, Estée Lauder acquired the Ojon Corporation, a privately-held prestige hair care company based in Canada. Ojon’s products are made with ingredients collected by the Tawira, an indigenous community living in the Central American rain forest. (Tawira means “the people of beautiful hair.”) Ojon markets its naturally-derived shampoos, conditioners, styling products and treatments through QVC, specialty retailers (including Sephora, Ulta and Nordstrom) and high-end salons. Ojon products, made with palm nut oil, help improve hair’s strength, moisture and shine, and reduce breakage. In late 2006, Ojon successfully launched Rare Harvest Tawaka Collection, a skin and hair care line based on a wild blend of antioxidant-rich cacao harvested in the Honduran rain forest.