Business Description

Estee Lauder Companies, Inc. manufactures make-up, fragrance, skincare,  and hair products. Products are sold under the following brands: Origins, Clinique,  and Estee Lauder. The company’s channel is primarily comprised of specialty multi-brand retailers and department stores as well as upscale pharmacies, prestige salons perfumeries, and spas. The company was founded in 1946 by Estee Lauder, Joseph Lauder, and has its headquarters in New York, NY.

Key Financials

Revenue (US$ Mn)

• US$ 16,215 Mn was the annual revenue generated by Estee Lauder Companies, Inc. in 2021
• Estee Lauder Companies, Inc.’s annual revenue for 2020 was US$ 14,294 Mn, a -3.83% decrease from 2019
• From 2018’s annual revenues, Estee Lauder Companies, Inc. registered an 8.62% increase in 2019, amounting to US$ 14,863 Mn
• Total revenue of US$ 13,683 Mn was generated in 2018 by Estee Lauder Companies, Inc.

Operating Income (US$ Mn)

• Estee Lauder Companies, Inc.’s operating income for 2021 was US$ 2,618 Mn, a 24.79% increase from the 2020
• The operating income generated by Estee Lauder Companies, Inc. in 2020 was US$ 2,098 Mn
• At a 27.05% increase from , Estee Lauder Companies, Inc.’s operating income of US$ 2,607 Mn was indexed in 2019
• Estee Lauder Companies, Inc. generated an operating income of US$ 2,052 Mn in 2018

Net Income (US$ Mn)

• Estee Lauder Companies, Inc.’s net income for 2021 was US$ 600 Mn, a -12.28% decrease from 2020
• The net income generated by Estee Lauder Companies, Inc. in 2020 was US$ 684 Mn
• At a 61.1% increase from , Estee Lauder Companies, Inc.’s net income of US$ 1,785 Mn was indexed in 2019
• Estee Lauder Companies, Inc. generated a net income of US$ 1,108 Mn in 2018

Operating Margin %

• 16% was the operating margin generated by Estee Lauder Companies, Inc. in 2021
• Estee Lauder Companies, Inc.’s operating margin for 2020 was 15%, a -16% decrease from 2019
• From 2018’s operating margins, Estee Lauder Companies, Inc. registered a 16.67% increase in 2019, amounting to 18%
• An operating margin of 15% was generated in 2018 by Estee Lauder Companies, Inc.

Gross Margin %

• Estee Lauder Companies, Inc.’s gross margin for 2021 was 76%, a 1.6% increase from 2020
• The gross margin generated by Estee Lauder Companies, Inc. in 2020 was 75%
• At a -2.53% decrease from , Estee Lauder Companies, Inc.’s gross margin of 77% was indexed in 2019
• Estee Lauder Companies, Inc. generated a gross margin of 79% in 2018

SWOT Analysis

Strengths

Liquidity Position

Estee Lauder’s greater liquidity gives it an advantage and allows it to take advantage of market opportunities. At the end of FY2020, the company’s current ratio was 1.75, compared to 1.6 in FY2019. The increase in current assets from US$7.212million in FY2019 to US$8,892 million in FY2020 led to an increase of 23.3% in the current ratio. This was due to an increase in cash and equivalents from US$2,987 to US$5,022million for 2020. The company’s current ratio was higher than that of its major competitors like Procter & Gamble Co. which reported a rate of 0.85 in the same period.

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