The Estée Lauder Companies reported a strong financial performance for its fourth quarter and fiscal year ended June 30, 2014 – recording net sales of $10.97 billion, an 8% increase compared with $10.18 billion in the prior year.

Net sales also increased 8%, and net earnings for the year rose 18% to $1.20 billion, compared with $1.02 billion last year.

Fabrizio Freda, President and Chief Executive Officer, said:

“Fiscal 2014 was another outstanding year for our Company. We achieved record results across many metrics, including sales, operating margin, earnings per share and operating cash flow.”

Freda continued, “Our topline growth was nearly double that of prestige beauty and was broad-based across regions, product categories and channels, despite slower industry growth in some key countries. Our emerging markets, makeup and luxury brands, and our online, freestanding store and travel retail channels led our growth.”

Highlights, by Category

SkinCare: A strategic priority, ELC gained share during the year in this category in certain countries where its products are sold.

MakeUp: Higher sales reflected double-digit growth from makeup artist brands and from recent launches, such as Pure Color Envy Sculpting Lipstick from Estée Lauder and All About Shadow from Clinique; while double-digit sales increases from Smashbox and the Tom Ford line of cosmetics also contributed to the category’s growth.

Fragrance: Strong double-digit sales growth came from luxury brands Tom Ford and Jo Malone; sales gains were also generated from the recent launches of Estée Lauder Modern Muse, the Michael Kors Collection and Tory Burch.

Hair Care: Net sales growth was primarily driven by Aveda; Sales increased at Bumble and bumble; Ojon sales decreased, primarily reflecting its exit from the direct response television channel.

Future Outlook

In fiscal 2015, the Company estimates global prestige beauty will grow approximately 3% to 4%.

ELC also expects to leverage its strong sales growth and continue to reduce non-value-added costs to further improve its operating margin in fiscal 2015.