NEW YORK — The Estée Lauder Companies Inc. (EL) reported financial results for its fourth quarter and fiscal year ended June 30, 2016.
Fabrizio Freda, President and Chief Executive Officer, said, “Our fiscal 2016 performance gives us much to celebrate. We again delivered strong constant currency net sales growth and double-digit adjusted constant currency EPS growth, reflecting the compelling products and services we bring to consumers around the world. We capitalized on shifting consumer preferences by leveraging our strength in makeup and positioning our Company to win in luxury fragrances. We nimbly allocated resources and made strategic investments in areas that gave us terrific results, including emerging markets, our makeup category, and the online and specialty-multi retail channels. Importantly, we achieved these results against a backdrop of social and political instability, currency volatility and economic challenges.”
For the three months ended June 30, 2016, the Company reported net sales of $2.65 billion, a 5% increase compared with $2.52 billion in the prior-year period, posting across-the-board sales gains in all geographic regions and product categories, except fragrance. Fiscal 2016 fourth quarter sales benefited from innovative new products and double-digit growth in several emerging and developed markets. The Company also generated double-digit gains in its travel retail and online channels. Net earnings for the quarter were $93.5 million, compared with $153.0 million last year, and diluted net earnings per common share were $.25, compared with $.40 reported in the same prior-year period. The fiscal 2016 fourth quarter included the effect of restructuring and other charges described below.
Excluding the impact of foreign currency translation, net sales increased 7%. For the quarter, the negative impact of foreign currency translation on diluted net earnings per common share was $.01. Adjusting for the restructuring and other charges, diluted net earnings per common share for the three months ended June 30, 2016 were $.43, and in constant currency rose 11% to $.44.
For the year, the Company achieved net sales of $11.26 billion, a 4% increase compared with $10.78 billion in the prior year. Net earnings for the year were $1.11 billion, a 2% increase compared with $1.09 billion last year, and diluted net earnings per common share rose 5% to $2.96, compared with $2.82 reported in the prior year. The fiscal 2016 full year included the effect of restructuring and other charges and adverse currency translation, and the comparison with the prior-year period was favorably impacted by accelerated retailer sales orders, described below.
In North America net sales increased, due to growth from most of the Company’s brands led by double-digit gains from Tom Ford, Jo Malone and Smashbox and solid growth from La Mer, M•A•C and Bobbi Brown. Increased makeup sales were partially offset by lower skin care and fragrance sales. The Estée Lauder and Clinique brands each posted double-digit growth in makeup for the year. Sales in the Company’s online business grew strong double digits.
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