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Lauder Evolution: Distribution Shift All About Consumer Reach

Lauder brands’ growing presence in Sephora doors and the specialty multi-retailer channel in general doesn’t compromise their prestige positioning – and anyway that’s beside the point, CEO Fabrizio Freda suggests. In an evolving marketplace, Lauder’s distribution strategy is to appeal to Millennials who otherwise might not be reachable.

The Estee Lauder Companies’shift away from department stores in favor of specialty multi-retailers has raised concerns among investors about possible dilution of its prestige image, but leadership suggests they may be missing the point.

During the firm’s Aug. 19 call to discuss its fiscal 2016 fourth-quarter and full-year results, analysts asked whether moving high-end...

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