Estée Lauder - TU18 Aug 2023 13:21
‘Business Update
In the fiscal 2023 fourth quarter, net sales returned to growth, increasing 1% on a reported basis and 4% organically, reflecting growth in Makeup, Fragrance and Hair Care as well as double-digit growth in the Company’s emerging markets globally. The decline in Skin Care net sales primarily reflected the ongoing challenges in the Company’s Asia travel retail business. Net sales grew in nearly all markets in Asia/Pacific and EMEA as they continued to progress in recovery from the COVID-19 pandemic and benefited from the Company’s strategic investments in advertising and promotional activities, innovation and targeted expanded consumer reach.
For the full fiscal year ended June 30, 2023, the operating environment continued to be disrupted by the impact of the COVID-19 pandemic. Most notably, the pace of recovery in Asia travel retail and mainland China was slower than anticipated. In Hainan, prolonged store closures initially presented a headwind and, thereafter, low levels of conversion occurred when travel resumed. This was compounded by inventory tightening by certain retailers. In Korea, the travel retail business slowed during the transition to post-COVID regulations. In addition, the slower than anticipated resumption of international flights, granting of visas, and organized group tours further challenged the Asia travel retail recovery. As a result, the Company’s Asia travel retail business was challenged throughout the fiscal year by the slower than anticipated recovery. In mainland China, the Company’s performance in the first half of fiscal 2023 was hindered by low retail traffic as a result of COVID-related restrictions and the rise in COVID-19 cases’
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