The Estée Lauder Companies Inc. had a good fiscal 2012. The company reports a strong financial performance for its fourth quarter and fiscal year ended June 30, 2012, with net sales for the year of $9.71 billion, a 10% increase compared with $8.81 billion reported in the prior year. Excluding the impact of foreign currency translation, net sales also increased 10% from a year ago. The Company reported a 110 basis point increase in operating margin and net earnings for the year rose 22% to $856.9 million, compared with $700.8 million last year. Diluted net earnings per common share rose 24% to $2.16, compared with $1.74 reported in the prior year.

Fabrizio Freda, president and chief executive officer, noted the company had a very strong fourth quarter, in which it generated double-digit growth in sales, excluding currency, and earnings per share, which was driven largely by continued momentum in the U.S. and strong growth in China and travel retail.

“In fiscal 2012, we grew sales, net earnings and earnings per share by double digits. Our sales grew at twice the rate of worldwide prestige beauty, owing to the success of our highly innovative products, marketing prowess and personalized services. Despite pockets of economic uncertainty around the globe, our sales growth was broad-based, with strong gains in every geographic region and product category and many distribution channels. Financial discipline throughout our Company enabled us to bring much of our sales growth to the bottom line. Our operating margin increased 120 basis points to a record 14.2% — exceeding our original forecast — and operating cash flow reached an all-time high of $1.1 billion,” he said.

The company plans to continue to further strengthen its leadership in prestige beauty by leveraging the global reach of its diverse brand portfolio. “We plan to continue to focus our efforts and resources in the most promising areas for prestige beauty, including emerging markets, travel retail and digital. At the same time, we expect to generate further cost savings and improve profitability as we move forward. While we are positive about our long-term outlook we are cautious of further weakening in certain global markets. Nonetheless, we are confident in our growth prospects and we are extending our financial goals to fiscal 2015 and raising our operating margin target to 15.5% to 16%,” he said.

The Company’s performance was due to solid overall business, particularly from its largest brands. The Company reported sales gains in each of its product categories and geographic regions. Net sales also grew in each major product category within each region.