Year in Review

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Overview

Inspired by Moroccan culture and colors
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Balances sebum levels for a clean scalp
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Collaboration with Chrissy Teigen
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Award-winning perfect match foundation
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Into The Gloss Top 25 Award Winner
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Results show a 179% moisture boost
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Best-selling serum for redness reduction
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Repairs, fortifies, hydrates eyes
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Created in conjunction with Alber Elbaz
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Inspired by adventure and escape
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Award-winning peel off mud treatment
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Unisex scent dubbed the London Lark
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Half innocent, half voluptuous
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Perfected using deep-space technology
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Best-selling product from La Mer
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Perfected using deep-space technology
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Dubbed "the real life Instagram filter"
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Fortified with Coffee & Panax Ginseng
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A mood-booster and skin-elixir in one
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Inspired by L.A. trends & Shay Mitchell
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Shades named after men in Ford's life
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Infused with the juicy scent of peaches
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Year in Review

The Estée Lauder Companies achieved another year of strong financial performance in fiscal 2017, demonstrating the strength of our winning strategy of multiple engines of growth fueled by our diversified portfolio of brands. We invite you to explore select highlights and successes from our year in the features below. And, please click on featured products or brand names throughout these pages to be directed to purchase.

Exclusive Video Features

The Consumer Journey Today

Today's prestige shopping experience blends together digital, social and in-store experiences. Join Amanda in her search for the perfect product!

A message from our President and CEO, Fabrizio Freda

A message from our Executive Chairman, William P. Lauder

2017 Highlights

This year, we pivoted our business to capture new consumers. We did this by increasing our exposure to the fastest-growing prestige channels, strengthening our brand portfolio, investing in key geographies and enhancing our digital and social media communications. See below some of our brand highlights from this fiscal year, including the resurgence of China, our investment in hero products, the success of Travel Retail, a look into our new brands, our financial highlights, and many more. 

Travel Retail
Beauty on the Go
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Beauty on the Go

As the global leader in prestige beauty, The Estée Lauder Companies is strategically optimizing consumer reach in the brand-building Travel Retail channel. This year, we increased the presence of our brands, products and services in airports around the world, and converted more travelers into travel retail consumers. We saw strong growth in Travel Retail in fiscal 2017, and we are the global leader in prestige beauty in this channel.

Digital commerce is the fastest-growing channel for prestige beauty sales, and for consumers who prefer to shop online, we have seized on opportunities to help them while they travel. More and more, traveling consumers are buying their goods online and picking up their purchases prior departure at the airport. We saw a +100 percent increase in pre-order sales thanks, in part, to the opening of 55 additional travel-related e-commerce websites.

Jo Malone London Travel Retail Copenhagen High Profile Promotion featuring Blossom Belle

This fiscal year, our fragrance category experienced the strongest growth in the channel, led by the success of Jo Malone London and Tom Ford. Jo Malone London launched the “Blossom Belle” collection exclusively in Travel Retail in April 2017, aimed at capturing Asian traveling consumers with the fragrances’ light, floral scent. The results were strong and the brand saw an average daily sales uplift of +30 percent across all doors, breaking records in the first two months.

We believe there will be demand among consumers for our newer luxury and artisanal fragrance brands like Le Labo, By Kilian and Editions de Parfums Frédéric Malle, enabling us to further penetrate the channel’s most important category as we roll them out in the coming years.

In makeup, Tom Ford attracted the Chinese traveling consumer by strategically engaging Chinese influencers and activating travel corridors around the world. The multi-tiered strategy targeted fashion insiders followed by top Chinese influencers that culminated with a global launch event in Beijing, China.

As a result, Tom Ford achieved record growth in Travel Retail and propelled Shanghai’s Pudong Airport to the number one Tom Ford door in the world. The lip sub-category also performed strongly in the channel, supported by the Lips & Boys lipstick collection.

Tom Ford in Shanghai’s Pudong Airport

As a result, Tom Ford achieved record growth in Travel Retail and propelled Shanghai’s Pudong Airport to the number one Tom Ford door in the world. The lip sub-category also performed strongly in the channel, supported by the Lips & Boys lipstick collection.

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Our New Brands
Welcome to the #ELCFamily
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Welcome to the #ELCFamily

The Estée Lauder Companies has a successful history of identifying the next generation of powerhouse brands and collaborating with talented, entrepreneurial founders to build them. In fiscal 2017, we welcomed two new brands to our portfolio: BECCA, a makeup brand offering complexion and color products that flatter a wide range of skin tones and Too Faced, the feminine, playful makeup brand renowned for stylish cosmetics that consumers adore. The makeup brands are both fast-growing in specialty-multi and online, particularly in North America, and are expected to strengthen the Company’s leadership position in the prestige makeup category globally.

Launched in 2001, BECCA has experienced exceptional growth over the past several years, with a curated product line that use the “Beauty of Light” to enhance the complexion. Most of the brand’s foundations are available in up to 20 shades, making BECCA a highly coveted brand for women of all ages and ethnicities. In April 2017, BECCA launched the highly successful BECCA X Chrissy Teigen Glow Face Palette via a launch event with Chrissy in Los Angeles, and influencer seeding resulted in an earned media value of over $4 million.

BECCA brand products

BECCA X Chrissy Teigen Glow Face Palette

DECIEM brand products

The Too Faced Sweet Peach launch event

Too Faced Sweet Peach ad visual

Launched in 1998 by beauty visionaries Jerrod Blandino and Jeremy Johnson (who began their careers at the Estée Lauder counter!), Too Faced offers an unabashedly empowering line of beauty products. Beloved for its high-quality, innovative formulas, irreverent product names and distinctive packaging, Too Faced creates an authentic connection with consumers and has developed a strong following among millennials. In 2016, Too Faced introduced its Sweet Peach Eye Shadow Palette, featuring 18 shades infused with the antioxidant-rich essence of peach. On the evening of its launch, over 40,000 consumers logged onto TooFaced.com, leading to one of the most successful eyeshadow palette launches ever, with 1.5 orders per second.

In June 2017, we made a minority investment in DECIEM, a fast-growing, vertically integrated multi-brand company, driven by a consumer-centric focus. Founded in 2013 in Toronto, Ontario, DECIEM’s innovative multi-brand strategy is propelled by its own laboratory, manufacturing, e-commerce sites, retail stores and marketing infrastructure, which enable the company to rapidly identify opportunities, and create and incubate new brands. The company has launched ten brands to date, including international cult favorite The Ordinary.

We are continuing to support the growth of our other recently acquired brands, GLAMGLOW, Editions de Parfums Frédéric Malle, By Kilian and Le Labo. In October 2016, GLAMGLOW re-launched in the United Kingdom with a fun pop-up store concept. In March 2017, Editions de Parfums Frédéric Malle launched Superstitious, a new fragrance in collaboration with acclaimed fashion designer Alber Elbaz. In April 2017, By Kilian launched Black Phantom, the brand’s seventh collection with positive results. Finally, this fiscal year, Le Labo re-launched its e-commerce site with enhanced navigation and functionality bringing its engaging in-store experience online.

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Consumer Loyalty
Product is Hero
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Product is Hero

Prestige beauty remains vibrant and dynamic, growing approximately four to five percent annually, with both established brands growing and new brands launching continuously. Among the many choices, there is intense competition to attract and retain consumers. We see growth coming from consumers purchasing beauty products more frequently – in fact, the average U.S. consumer uses 12 brands per day – and their decision to buy is increasingly based on product first, brand second.

For our prestige brands, real success is not just attracting consumers to try our products, but turning them into loyalists. High-quality products and franchises, the best ingredients and the most effective formulas drive repeat purchases in a crowded competitive landscape. Our brands’ lifelong devotees love to try new products – because trying new things is part of the fun – but will return to their “hero” favorites time and time again.

This fiscal year, the Estée Lauder brand continued to support and leverage two hero franchises, Advanced Night Repair and Double Wear. Advanced Night Repair continues to be a powerful growth engine for the brand with a range of new innovative products such as its Intensive Recovery Ampoules and the recent launch of Advanced Night Repair Eye Concentrate Matrix. Double Wear is the best-selling prestige foundation in many markets, attracting consumers across generations to the brand. Double Wear’s continued success was fueled by the strong performance of Double Wear Cushion Stick and the launch of Double Wear Cushion Compact, a packaging innovation coveted by Chinese consumers.

Advanced Night Repair Intensive Recovery Ampules

Advanced Night Repair and Advanced Night Repair Eye Concentrate Matrix

Double Wear Cushion Stick Radiant Makeup

Double Wear Cushion BB All Day Wear Liquid Compact

Clinique Fresh PressedTM Daily Booster with Pure Vitamin C 10% can be used with Clinique hero moisturizer, Moisture Surge

Clinique launched Fresh PressedTM Daily Booster with Pure Vitamin C 10% this year and it has become a global success. The booster, used in combination with the brand's core moisturizers – Moisture SurgeTM and Even BetterTM Moisturizer – exceeded sales expectations.

As planned, the success of this product created a halo effect generating higher sales in moisturizers. In another move to strengthen its position in moisturizers, Clinique introduced Moisture SurgeTM Hydrating Supercharged Concentrate, developed from proprietary technology that is expected to elevate the brand’s bestselling franchise.

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China
The Resurgence of China
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The Resurgence of China

China continues to lead in luxury shopping, and is reportedly on pace to become the world’s largest beauty market. Chinese consumers, once skin care-centric, are expanding and evolving their beauty buying habits, with many more now trying and buying the latest makeup looks.

The "selfie" culture is thriving in China, and consumers are looking to WeChat, Weibo and Youku to inspire their beauty purchasing decisions as they seek inspiration and education. These social media platforms have revolutionized the way consumers shop and what they’re buying, leading to significant growth opportunities in the makeup category. The Estée Lauder brand performed strongly in China this fiscal year, as consumers responded positively to the brand’s in-store and social media campaigns.

Yang Mi for Estée Lauder

In February 2017, the brand announced on Weibo that famed Chinese actress and beauty icon, Yang Mi, would be the new #EsteeModel in China, resulting in over one million retweets. Consumers responded with a noticeable uptick on social media and a 170 percent increase in lipstick sales during the first month of launch.

Chinese consumers are increasingly gaining access to shopping opportunities and content online, and our brands capitalized on this trend. To reach more target consumers, M·A·C launched on Tmall, China’s largest brand-building online retailer, in May 2017. To drive excitement and engagement, M·A·C partnered with four local influencers with a combined reach of over 13 million followers on Weibo. These influencers garnered pre-launch excitement on their social platforms and created custom beauty kits that sold on the M·A·C flagship store on Tmall and in select brick-and-mortar stores. M·A·C’s Tmall store had one of the most successful launches and highest historical sales for an opening on Tmall Prestige Beauty to date, selling over two million dollars on the site in the first two weeks.

M·A·C Launch on TMall

Customized product bundles for M·A·C TMall Flagship Store

Top Chinese beauty influencer Tony Li sharing his tips and tricks using M·A·C products

Chinese influencer Ming Xi for M·A·C’s launch on TMall

Chinese influencer Cherie for M·A·C’s launch on TMall

Chinese influencer Cherie’s favourite M·A·C products featured on TMall

Chinese influencer Kakakaoo for M·A·C’s launch on TMall

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Fiscal 2017
More Brand Highlights
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More Brand Highlights

Our brands are focused on delivering high-quality products, consumer education, customization and High-Touch service. Explore other notable brand highlights from this fiscal year below.

Aveda activates the professional authority of Aveda Artists and social-savvy influencers to create on-trend, shareable tutorial content to inspire and engage 50,000 hair and spa professionals around the world. Here, our #AvedaArtist embraced her models’ curls for this gorgeous look.

Bobbi Brown launched the Art Stick Liquid Lip this year, a unique take on the liquid lip trend that delivers highly-pigmented, squeezable color in a distinctive package. Art Stick Liquid Lip became the U.K.’s number one color launch in brand history.

This year, Bumble and bumble launched Color Sticks, a velvety, easy-to-apply, long-lasting color stick to effectively cover up grey hair and hide roots.

This year, Origins launched A Perfect World, a youth-protecting collection infused with antioxidant-rich White Tea. Believed to extend longevity, White Tea was prized for centuries by emperors in China’s famed “Elixir of Immortality.”

Smashbox opened their first-ever U.S. flagship store in Venice, California this year, featuring wall-to-wall makeup, a menu of services – like lip gloss mixing – and a 3D lipstick printer. Glam stations with digitally controlled lighting reproduce various locations and times of day so consumers getting their makeup done will be lighting-appropriate for their event.

Tory Burch Love Relentlessly fragrance was inspired by Tory’s own parent’s courtship and their timeless love story. This love story was captured in all aspects of the fragrance, from the packaging, fragrance notes, campaign content, digital and social content.

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Fiscal 2017
Our Financials At-A-Glance
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Our Financials At-A-Glance

This is the eighth consecutive year we generated strong organic growth and outperformed the industry. We proved that we can pivot our business, execute with speed and excellence, and make courageous choices that create momentum for the coming years.

Average Net Sales Growth 2011-2016*

Net Sales**

Category Growth

Region Growth

Sustained EPS Growth**

Total Stockholder Return

History of Acquisitions and Licenses

Channel Breakdown

Learn more about our various financial measurements of the Company’s performance

*Source: ELC sales growth in constant currency for fiscal years 2012 - 2017. Euromonitor 2016 for premium skin care, makeup and fragrances.
**For more information, see our Financial Section in the 2017 Annual Report.
FactSet data for S&P 500 Consumer Staples section.
††Other channels include sales primary to distributors, pharmacies, and military.

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2017 Annual Report

Download our 2017 Annual Report that includes letters from William P. Lauder, Executive Chairman; Fabrizio Freda, President and CEO; and fiscal year 2017 financial highlights.

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The Estée Lauder Companies' Year in Review

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