The Estee Lauder Companies Reports Excellent Fiscal 2022 Results.
Highlights:
* Full Year Net Sales Increased 9% and Diluted EPS Decreased to $6.55 from $7.79
* Organic Net Sales1 Grew 8% and Adjusted Diluted EPS Increased 12% in Constant Currency
* Strong Organic Sales Growth Expected in Fiscal 2023
NEW YORK - The Estee Lauder Companies Inc. (NYSE: EL) today reported net sales of $17.74 billion for its fiscal year ended June 30, 2022, an increase of 9% from $16.22 billion in the prior-year period. Organic net sales increased 8%, driven by double-digit growth in The Americas and Europe, the Middle East & Africa ('EMEA') regions, largely reflecting a recovery in brick-and-mortar retail stores, as well as double-digit growth in global online2 and growth in travel retail.
The Company reported net earnings3 of $2.39 billion, compared with net earnings of $2.87 billion in the prior-year period. Diluted net earnings per common share was $6.55, compared with $7.79 reported in the prior-year period. Excluding restructuring and other charges and adjustments as detailed on page 3, adjusted diluted net earnings per common share was $7.24, a 12% increase in constant currency.
Fabrizio Freda, President and Chief Executive Officer said, 'We delivered excellent results in fiscal 2022, exceeding our expectations in the fourth quarter and achieving record revenue and profitability on an adjusted basis for the year. Our multiple engines of growth strategy proved invaluable amid pandemic and macro complexity, affording us the diversification to seize growth of the moment. The Americas and EMEA prospered, Fragrance soared, and Makeup realized the promise of its emerging renaissance.
'La Mer, M*A*C, and Jo Malone London led the contribution of double-digit organic sales growth by nine brands, impressive on its own and especially so given the significant pressure from COVID-19 in Asia/Pacific at the end of the year. Brick-and-mortar and Online each grew globally, as we capitalized on reopening, extended our consumer reach in high-growth channels, and amplified our omni-channel capabilities.'
1 Organic net sales represents net sales excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures; as well as the impact of currency translation. We believe that the Non-GAAP measure of organic net sales growth provides year-over-year sales comparisons on a consistent basis. See page 2 for reconciliations to GAAP.
2 Online sales discussed throughout includes sales of our products from our websites and third-party platforms, as well as estimated sales of our products sold through our retailers' websites.
3 Net earnings attributable to The Estee Lauder Companies Inc. which excludes net (earnings)/loss attributable to noncontrolling interests and redeemable noncontrolling interest.
Freda concluded, 'We are very confident in the strength of our Company and in the vibrant long-term growth opportunity of prestige beauty, but recognize the environment remains complex and uncertain at this point in time. For fiscal 2023, we expect to deliver strong organic sales growth, fueled by our diversified growth engines and enticing innovation, and to take the opportunity in this volatile year to continue investing for our exciting future.'
COVID-19 Business Update
The COVID-19 pandemic continued to disrupt the Company's operating environment globally, primarily impacting supply chain, inventory levels and other logistics during the year ended June 30, 2022. The resurgence of COVID-19 cases in many Chinese provinces led to restrictions late in the fiscal 2022 third quarter that remained in place through the end of fiscal 2022 to prevent further spread of the virus. Consequently, retail traffic, travel and distribution capabilities were temporarily curtailed. The Company's distribution facilities in Shanghai operated with limited capacity to fulfill brick-and-mortar and online orders beginning in mid-March 2022 and returned to normal capacity by early June 2022.
Fiscal 2022 Results
Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably the acquisition of the majority interest in Deciem Beauty Group Inc. ('DECIEM') and the closure of BECCA); as well as the impact of currency translation. Product category and geographic region sales commentary reflect organic performance.
Reconciliation between GAAP and Non-GAAP Net Sales Growth: see details at:
https://www.elcompanies.com/en/news-and-media/newsroom/press-releases/2022/08-18-2022-114525611
Investors:Rainey Mancini
rmancini@estee.com
Media:Jill Marvin
jimarvin@estee.com
ESTEE LAUDER 
