The Estée Lauder Companies Inc. reported net sales of $14.29 billion for its fiscal year ended June 30, a decrease of 4% from $14.86 billion in the prior-year period. Excluding the impact of currency translation, net sales decreased 3%. The net sales decline was driven by retail store closures as a result of the global spread of Covid-19 that was partially offset by the tremendous acceleration online.
“Fiscal 2020 was a year without parallel, as we delivered record sales and exceptionally strong adjusted EPS growth in our first half and navigated with agility through an unprecedented pandemic in our second half,” said Fabrizio Freda, president and chief executive officer. “The second half also marked a period of profound pain as tragic events in the United States highlighted the systemic racial injustice that has plagued our society for far too long.”
The outbreak and global spread of Covid-19 has caused a significant disruption in the company’s operating environment, the company said. Accordingly, Estée Lauder modified a number of its business practices during the second half of fiscal 2020, in part due to legislation, executive orders and guidance from government entities and healthcare authorities. These include the temporary closing of businesses deemed “non-essential,” travel bans and restrictions, social distancing and quarantines.
“Our strategic priorities for fiscal 2021 rightly balance investment in these engines with cost discipline amid the ongoing pandemic,” Freda continued. “Through the Post-Covid Business Acceleration Program announced today, we are better aligning our brick-and-mortar footprint to improve productivity and invest for growth. We are well-positioned to drive growth as the market dynamics support it, yet remain equally mindful of the effects of Covid-19 on consumers, the retail sector and economics, in general, as well as geopolitical uncertainty.”
