The Estée Lauder Companies Inc. reported net sales of $16.22 billion for its fiscal year ended June 30, 2021, an increase of 13% from $14.29 billion in the prior-year period.
 
Net sales grew in every region and in most product categories, reflecting the gradual reopening and recovery in brick-and-mortar retail stores in certain markets compared to the prior year when retail locations closed in most markets during the second half of the year as Covid-19 spread globally. Incremental net sales from the Company’s acquisition of Have&Be Co. Ltd. and the increase in its ownership of Deciem Beauty Group contributed 2 percentage points of growth to reported net sales.
 
Also, for the three months ended June 30, 2021, the company reported net sales of $3.94 billion, a 62% increase compared with $2.43 billion in the prior-year period.
 
“We delivered outstanding results in fiscal 2021, capped by an exceptional fourth quarter and powered by our multiple engines of growth strategy as well as the timeless desirability of prestige beauty. Notably, both sales and profitability meaningfully exceeded fiscal 2019 performance,” said Fabrizio Freda, president and chief executive officer. “Amid the challenges of the pandemic, we invested in near- and long-term growth opportunities and managed costs elsewhere with discipline, while making important progress on our social impact commitments and sustainability goals.”
 
Business Segments
 
During fiscal year 2021, skin care net sales grew across every region, led by Estée Lauder, La Mer and Clinique. Estée Lauder delivered double-digit growth, reflecting growth in all regions, with significant strength in mainland China. Strong double-digit growth from La Mer was driven by significant strength among Chinese consumers in both mainland China and travel retail. Clinique delivered double-digit growth in every region driven by strong demand for its hero products.
 
Makeup net sales declined among nearly all brands, led by M·A·C and Clinique. These declines were partially offset by growth at Too Faced and La Mer. The effects of Covid-19 disproportionately impacted makeup usage, particularly foundation and lip, in most markets. Makeup sales rose in the second half of the fiscal year in every region, reflecting the more advanced recovery in China and the easier comparisons to the second half of the prior year as Covid-19 spread globally.
 
Fragrance net sales grew, largely due to increases from Jo Malone London, Tom Ford Beauty, Le Labo, Kilian Paris, certain designer fragrances and Editions de Parfums Frédéric Malle. Fragrance growth accelerated during the year driven by continued resilience in luxury fragrance during the pandemic as well as easier comparisons in the second half of the fiscal year.
 
Hair care net sales rose, primarily reflecting successful innovation at Aveda, including Botanical Repair, and growth from existing product franchises, including Nutriplenish and Invati. Aveda’s online sales grew strong double digits, reflecting the brand’s expanded online services which drove sales to the channel while many salons and freestanding stores were closed.
 
Looking forward, Freda emphasized, “For fiscal 2022, we expect strong net sales and adjusted earnings per share growth with continued margin expansion. Our growth engines are poised to increasingly diversify as Makeup and Hair Care, developed markets in the west, and brick-and-mortar retail gradually recover and complement the strength of our existing growth engines. We anticipate that growth in emerging markets will also resume over time as the impacts of the pandemic abate.”