Following today’s (3 February 2022) release of Estee Lauders’ trading results;

Nina Nowak, Senior Researcher at GlobalData, a leading data and analytics company, offers her view:

“Estee Lauder’s premium image combined with limited offers has likely maximized demand during the holiday period. Indeed, according to GlobalData’s Q4 2021 consumer survey, 47% of global shoppers point to high-quality products or ingredients being the main indicator of value for money in beauty and grooming products, while 19% point to discounts and promotions.

“The company’s success can be credited to navigating and targeting these demands during key shopping moments, such as Black Friday and the festive season, which helped to elevate sales and expanded the brand’s reach via exclusive offers, new product launches, and personalized services both online and in-store.

“Most of the product categories, such as skincare, fragrance, or haircare have outperformed pre-pandemic results, bringing optimism for the upcoming quarter. However, face covering requirements and limited social gathering opportunities continue to have an impact on the make-up category. Despite continuous growth versus 2021, make-up sales remain below pre-pandemic levels. Working from home practices may have also heavily impacted interest in the category; as of GlobalData’s December consumer survey (Q4-2021), 54% of global shoppers have started, continue, or increased the frequency of working from home in the last three months.

“The brand’s outstanding results, obtained despite ongoing challenges from supply disruptions and point-of-sale staff shortages, reinforce Estee Lauder’s market position, while also displaying the consistent recovery of the cosmetics and toiletries market.”