Cosmetics maker Estée Lauder says it is focused on both brick-and-mortar and online sales opportunities as it deals with the fallout from pandemic lockdowns in China and the ongoing conflict between Russia and Ukraine.
In reporting the company’s earnings Thursday (Aug. 18), CEO Fabrizio Freda said that Estée Lauder’s brick-and-mortar and online operations both grew for the fiscal year ending June 30, “as we capitalized on reopening, extended our consumer reach in high-growth channels, and amplified our omnichannel capabilities.”
The company reported net sales of $17.7 billion, up 9% year-over-year from $16.22 billion. The beauty-products maker says its organic net sales rose by 8%, driven by double-digit growth in the Americas, Europe, the Middle East and Africa, largely thanks to a resurgence in brick-and-mortar shopping.
The company said the COVID-19 pandemic continued to disrupt its operations during the fiscal year, especially in terms of its supply chain, inventory levels, and other logistics.
“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,” the report said. “Consequently, retail traffic, travel, and distribution capabilities were temporarily curtailed.”
Freda had warned in May that lockdowns in China would have a negative impact on the company’s financial outlook in the short term but promised those effects were only temporary.
PYMNTS noted recently that beauty and wellness companies have been among the most successful at adapting to the pandemic as more and more consumers go online to make purchases in those categories.
Our research found that 12% of consumers say they increased their online beauty product purchasing between 2020 and 2021, which makes staying at the forefront of digital trends and capabilities essential for merchants.
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