The Estee Lauder Companies have reported a 15.2 per cent increase in net sales for the third quarter of 2004, up $190 million to $1.42 billion, in comparrison to the previous year. Net earnings also rose 17.3 per cent from $83.3 million in 2003 to $98.3 million for the third quarter ended 31 March 2004.
Sales were up in all product categories paced by strong new launches as well as solid sales of existing products. Skincare sales rose by 10 per cent on a global average driven mainly by the sales of anti-ageing products.
"Sales were helped by the launch of Hydra Complete Multi-Level Moisture Creme, a product designed by Estee Lauder to hydrate the skin. The cream has been successful because it deals with a new concept, it not only focuses on protecting the skin from dry environments but is formulated with a patented Poria Cocos mushroom extract to hydrate the skin against the movement between changing environments," Maes told CosmeticsDesign.com.
Poria Cocos mushroom is an edible mushroom found in China. The mushroom is known to have anti-inflammatory molecules, an area of skin damage being payed close attention at the moment by both make-up and sun care formulators.
"Skin inflammation can be both visible and invisible to the naked eye and is one of the main causes of skin ageing. Anti-ageing and cellulite are among the biggest consumer concerns at the moment and Estee Lauder is continuing to invest in research and development in these areas," said Maes.
The recent launch of Body Performance - a cream scientifically developed by Estee Lauder to erradicate cellulite - is expected to positively impact the company's fourth quarter sales. The cream also encorporates a patented Chinese plant extract, the Maitake mushroom.
"I believe the way forward for growth in Europe and America lies with developing new and effective anti-ageing and anti-cellulite products. In Asia growth continues as the population becomes increasingly aware of products available to them, demand for skin whitening innovation has also got room for strong growth and is an area that we are developing and researching at present," said Maes.
Skin whitening technology is used to develop products to whiten the skin, hide age spots and control abnormal colour pigmentation.
Lauder and Clinique are likely to be releasing new whitening products in the fall to replace Estee Lauder's LightWhite range, Dr Maes exclusively revealed to CosmeticsDesign.com.
Estee Lauder's net sales in Asia/Pacific rose 19 per cent in comparrison to the previous years third quarter, while sales for Europe, the Middle East & Africa rose 25 per cent to $453.1 million. Sales in America generating better-than-expected sales growth, achieving a 9 per cent increase in comparrison to the same period a year earlier.
Estee Lauder Companies forecasts full-year sales to grow approximately 13 per cent in comparrison to 2003, driven principally by the returns of the company's various fragrance launches."We are rigirously researching and developing perfumes and fragrances across all our brands. As concerns over allergies prevail we are striving to create a more controlled perfume that is long lasting and more subdude," revealed Maes.