Lauder Upbeat About Clinique, While Namesake Shows ‘Big Brands Can Grow Fast’
This article was originally published in The Rose Sheet
Driven by Estee Lauder and Clinique, the firm achieved gains in North America in fiscal 2018, despite continued brick-and-mortar retail erosion, while capitalizing on China’s growing appetite for luxury beauty. In a call with analysts, CEO Freda provided a succinct update on the company’s review of potentially flawed product claims, an issue raised last quarter that now is expected not to be material.
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The firm is confident that prestige beauty demand in China will remain a constant, translating to double-digit growth over the long term, but it’s taking a prudent approach to guidance in light of possible tariff impacts, among other unknowns. Lauder’s first-quarter sales totaled $3.52bn, up 11% in organic terms.
Luxury beauty growth shows no signs of slowing, and L’Oreal markets some heavy hitters in the luxury tier. But L’Oreal Paris, Maybelline and other big names within the firm’s Consumer division also are having a superb year, with one noted exception.
California Cosmetics Bills Are Officially Law; Origins Tries Again With Lipsticks; Cosmetics News In Brief
California continues to lead the charge in state legislation adding to federal cosmetics requirements. Meanwhile Lauder’s Origins brand reenters the lipstick category, and Fusion Brands announces a potentially risky name change.