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Lauder Rides Asia, Skin-Care Momentum In Q3; Sales Up 18%

This article was originally published in The Rose Sheet

Executive Summary

Firm’s skin-care business rose 31% in the third quarter, taking considerable weight off makeup, which faces leveling demand after the boom in recent years. With its “digital-first mindset,” Lauder plans to increase promotional investments substantially in the fourth quarter to hit the ground running in fiscal 2019.

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Lauder says “a small group of employees” is responsible for intentionally altering testing behind product claims, misconduct alerted to management through the firm’s internal escalation process. Currently, the scope of the issue – and the potential impact on Lauder’s business – is unclear, but claims revisions of varying magnitude are expected as the company’s review progresses.

Estee Lauder Is Revising Claims, Retesting Products After Internal Breakdown

Lauder says “a small group of employees” is responsible for intentionally altering testing behind product claims, misconduct alerted to management through the firm’s internal escalation process. Currently, the scope of the issue – and the potential impact on Lauder’s business – is unclear, but claims revisions of varying magnitude are expected as the company’s review progresses.

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