The Estée Lauder Companies Inc. reports recurring developments in global prestige beauty, including results and outlook updates tied to skin care, makeup, fragrance, hair care and related brand activity. Company news commonly covers sales trends by product category and region, performance of brands such as Estée Lauder, Clinique, M·A·C, La Mer, Jo Malone London, Aveda, TOM FORD, The Ordinary and BALMAIN Beauty, and product introductions in prestige fragrance and skin care.
Updates also address portfolio investments, consumer-facing spending, distribution through retail and digital channels, and operating changes under the One ELC model and Profit Recovery and Growth Plan. These releases frame how the company manages its luxury and prestige beauty brands across approximately 150 countries and territories.
The Estée Lauder Companies Inc. (NYSE: EL) announced the pricing of $600 million of 1.950% Senior Notes due 2031. The offering is set to close around March 4, 2021, under an effective registration statement from May 21, 2018. Proceeds will support general corporate needs, including investments in DECIEM Beauty Group Inc., operational costs, and debt repayment. Major banks leading the offering include BofA Securities and Goldman Sachs. The offering does not constitute a sale solicitation in jurisdictions where it would be unlawful.
The Estée Lauder Companies announced it will increase its investment in DECIEM Beauty Group from approximately 29% to 76%, with the transaction expected to close by June 30, 2021. The initial payment will be around USD $1.0 billion, valuing DECIEM at approximately USD $2.2 billion. Since Estée Lauder's initial investment in 2017, DECIEM has seen net sales of approximately USD $460 million. The remaining interest will be purchased in three years, based on DECIEM's future performance. The acquisition is subject to regulatory approvals.
The Estée Lauder Companies reported second quarter net sales of $4.85 billion, a 5% increase from the prior-year, driven by the acquisition of Have&Be Co. Ltd. and strong online sales growth. Net earnings rose to $873 million, up from $557 million a year ago, with diluted EPS reaching $2.37. Despite COVID-19 disruptions affecting foot traffic, significant growth in the Asia/Pacific region and online sales was noted. The company anticipates improving sales growth in future quarters, targeting a 13%-14% increase for the next quarter.
The Estée Lauder Companies Inc. (NYSE: EL) announced a quarterly dividend of $0.53 per share on both Class A and Class B Common Stock, scheduled for March 15, 2021. Stockholders of record as of February 26, 2021 will be eligible for this payout. As a significant player in the global beauty market, the company offers a diverse range of products under renowned brands sold in approximately 150 countries.
The Estée Lauder Companies (NYSE:EL) announced the retirement of Gregory F. Polcer, Executive Vice President of Global Supply Chain, effective July 1, 2021. He will be succeeded by Roberto Canevari, starting May 1, 2021. Polcer has been instrumental in evolving the supply chain organization and implementing sustainability practices. Canevari, formerly with Unilever and Burberry, will oversee global supply chain operations and prioritize safety and sustainability. The transition aims to maintain the integrity and innovation of ELC's supply chain amid growing global demands.
The Estée Lauder Companies Inc. (NYSE: EL) will announce its second quarter fiscal 2021 results on February 5, 2021, at 9:30 a.m. (ET). A live webcast of the conference call will discuss financial outcomes, future outlook, and corporate developments. Fabrizio Freda, President and CEO, along with Tracey T. Travis, EVP and CFO, will lead the call. Interested parties can access the webcast through the Company’s investor website, where the session will also be archived.
The Estée Lauder Companies Inc. (NYSE: EL) held its Annual Meeting of Stockholders, chaired by Executive Chairman William P. Lauder. Key highlights included the election of five new board members: Charlene Barshefsky, Wei Sun Christianson, Fabrizio Freda, Jane Lauder, and Leonard A. Lauder. Stockholders ratified PricewaterhouseCoopers LLP as independent auditors for the fiscal year and approved the advisory vote on executive compensation. The company remains a leading global manufacturer in the personal care industry, with products available in approximately 150 countries.
The Estée Lauder Companies (EL) announced it has achieved Net Zero emissions and sourced 100% renewable electricity globally for its direct operations, fulfilling its RE100 commitment. This milestone supports the company’s broader climate strategy to set science-based emissions reduction targets across its operations and value chain. Key targets include a 50% reduction in absolute scope 1 and 2 GHG emissions by 2030 and a 60% reduction in scope 3 GHG emissions per unit revenue, reinforcing its long-term commitment to sustainable practices.
The Estée Lauder Companies reported Q1 net sales of $3.56 billion, a 9% decline from $3.90 billion year-over-year. This drop was attributed to temporary retail closures and reduced foot traffic due to COVID-19 but was partially offset by strong online growth. Net earnings fell to $523 million, down from $595 million, with diluted EPS at $1.42 compared to $1.61 last year. Despite challenges, the company expects sequential improvement in sales, driven by growth in Asia/Pacific and online sales, and plans to raise its quarterly dividend by 10%. Cost control measures helped maintain operating margins amid lower sales.
The Estée Lauder Companies Inc. (NYSE: EL) has announced a 10% increase in its quarterly dividend, raising it to $.53 per share from $.48 per share. This dividend will be payable on December 15, 2020, to stockholders on record as of November 30, 2020. The company is a leading global manufacturer and marketer of skin care, makeup, fragrance, and hair care products, with a presence in approximately 150 countries and territories under various brand names.