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Lauder's Broader, 'Digital-First' Distribution Paying Off; Q2 Sales Up 17%

 
• By Ryan Nelson

The beauty giant's second-quarter performance reflects global momentum in specialty retail and online channels and accelerating growth in China in particular. Analysts previously expressed concerns that increased distribution away from department stores could dilute Lauder's prestige positioning, but the firm consistently has defended the shift as essential to its future with younger consumers.

E-commerce. Shopping cart with cardboard boxes on laptop. 3d

The Estee Lauder Companies, Inc.'s expanded distribution strategy – increasingly targeting specialty retail and e-commerce opportunities – appears to be paying off in spades, voiding concerns raised by investors about possible brand dilution.

The beauty giant's fiscal 2018 second-quarter sales increased 14% in constant currency terms, 17% reported, to reach $3.74bn, according to...

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More from Earnings

Ulta ‘Beauty Unleashed’ Investment Delivers In Fiscal Q1

 
• By Eileen Francis

Retailer Ulta Beauty, Inc. reports net sales in the fiscal first quarter beat consensus estimates, rising 4.5% to $2.85bn, as the company sees benefits of its recently announced ‘Beauty Unleashed’ initiative.

E.l.f. Plans To Acquire Hailey Bieber Beauty Brand For $1Bn

 
• By Eileen Francis

E.l.f. Beauty, Inc. has agreed to acquire celebrity and model Hailey Bieber’s rhode lifestyle beauty brand for $1bn, the firm reported during a 28 May fiscal fourth quarter earnings call, during which it also announced plans to raise product prices to ‘partially’ mitigate the impact of tariffs.

Shiseido’s Key Priorities: Recover Drunk Elephant, Accelerate NARS Amid US Prestige Slowdown

 
• By Eileen Francis

Shiseido’s Drunk Elephant premium skin care range – acquired in 2019 – and its NARS brand dragged sales in the Americas region down almost 20% in the first quarter, the firm reported in a 12 May earnings presentation.

IFF Offsets Tariffs’ Impact, But Discretionary Product Ingredients Face Risk

 
• By Eileen Francis

New York-based International Flavors & Fragrance, Inc. has shifted procurement to alternative supply sources and is balancing production across its global network in response to US tariffs, though company executives say ingredients for discretionary products face risk.

More from Business

E.l.f. Plans To Acquire Hailey Bieber Beauty Brand For $1Bn

 
• By Eileen Francis

E.l.f. Beauty, Inc. has agreed to acquire celebrity and model Hailey Bieber’s rhode lifestyle beauty brand for $1bn, the firm reported during a 28 May fiscal fourth quarter earnings call, during which it also announced plans to raise product prices to ‘partially’ mitigate the impact of tariffs.

J&J Plots Next Steps Following Third Failure To Resolve Talc Cases Through Bankruptcy

 
• By Lauren Nardella

After a Texas judge denied a bankruptcy plan, Johnson & Johnson attorneys plan to focus on debunking what they see as dubious scientific claims in civil court.

Green Guides Update, FTC Enforcement In ‘Deregulatory’ Environment – BBB National Programs’ Engle During IBA Conference

 
• By Eileen Francis

The FTC’s Green Guides proposed update was expected by the end of the Biden Administration and there’s no indication it will be unveiled soon, says Mary Engle, BBB National Programs Exec VP, Policy. She also discussed the importance of industry self-regulation of artificial intelligence.