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Estee Lauder (NYSE: EL) | Company Profile, History, Competitors

 

Estee Lauder (NYSE: EL) is one of the largest manufacturers of skin care, makeup, fragrance and hair care products. As of 2017, Estee Lauder has 1,430 stores and also sells through department stores, specialty retailers, pharmacies and salons. The company was founded in 1946 and headquartered in New York, NY.

Estee Lauder was founded in 1946 by Estee Lauder and her husband Joseph Lauder. It sells a range of makeup, skin care, fragrance and hair care products. The company owns over 25 cosmetics brands from its namesake Estee Lauder brand and sells cosmetics under designer brands.

Business Overview

Estee Lauder operates in four main segments:
  • Makeup (43% of 2017 Revenues): Sells makeup for the eyes, lips, face, and nails.
  • Skin Care (38% of 2017 Revenues): Provides instrument servicing for laboratories to manage their resources.
  • Fragrance (14% of 2017 Revenues): Sells perfume and cologne as well as lotions, creams and soaps.
  • Hair Care (5% of 2017 Revenues): Sells shampoos, conditions, styling gels, hair spray and hair color products
  • Other (1% of 2017 Revenues): Sells ancillary services.

Key Brands

As of 2017, Estee Lauder has over 25 brands. The largest brands are:
  • Estee Lauder The namesake brand whose products have been sold since 1946.
  • MAC The leading brand of professional makeup artists, photographers and journalists. Acquired in 1998.
  • Clinique Allergy tested and 100% fragrance free products that are based on research of leading dermatologists. Introduced in 1968.
  • Aveda Plant-based skincare, hair care and makeup products. Acquired in 1997.
  • Bobbi Brown Natural shades of makeup developed by makeup artist Bobbi Brown. Acquired in 1995.
  • La Mer High-end skincare products infused with patented Miracle Broth. Acquired in 1994.
  • Too Faced High quality and fun cosmetics brand. Acquired in 2016.
  • Origins Natural beauty products company using advanced science. Introduced in 1990.
  • Smashbox Studio inspired makeup and cosmetics. Acquired in 2010.
Other brands include Jo Malone, Tom Ford Beauty, AERIN, Le Labo, and By Kilian. Estee Lauder also sells designer fragrances under the brands Tommy Hilfiger, DKNY, Michael Kors, Ermenegildo Zegna and Tory Burch.

Suppliers & Distribution

Estee Lauder manufactures its products globally. They sell their products through department stores, specialty retailers, pharmacies and salons and spas. The company also sells directly to customers through their online website in over 35 countries. Its largest customer is Macy's.

Competitors

Its main competitors are cosmetics companies including L'Oreal, Shiseido, Chanel, LVMH, COTY, Proctor & Gamble, Amorepacific and Unilever.

History

The company was founded in 1946 by Estee Lauder and her husband Joseph Lauder. In 1948, they opened their first store inside Saks Fifth Avenue. In 1960, they opened their first international store at Harrods.

In the 1980s and 1990s, they invested in brand acquisitions including Bobbi Brown, La Mer, Aveda and Jo Malone. In 1995, the company went public.

In the 2000s, the company continued with acquisitions including Bumble and Bumble, Darphin, Tom Ford Beauty and Smashbox Cosmetics.

Management

Fabrizio Freda (CEO): Fabrizio Freda serves as CEO since 2009. Prior, he worked in various roles at Proctor & Gamble including President Special Assignment and President Global Snacks.

Tracey T. Travis (CFO): Tracey Travis serve as CFO since 2012. Prior, she was CFO of Ralph Lauren and CFO of Limited Brands. She also worked as a financial analyst at General Motors.

Financials

 $ USD in millions    2013    2014 2015 2016 2017
 Revenues $10,183 
$10.969 
$10,780 
$11,263 
$11,826 
 Gross Profit $8,159 
$8,811 
 $8,680 
 $9,082 
 $9,404 
 Operating Profit $1,312 
$1,526 
 $1,606 
 $1,610 
 $1,692 
 Net Income$857 
$1,020 
$1,089 
 $1,115 
 $1,249 
 EPS$2.16 
$2.58 
$2.82 
$2.96 
$3.35 

Estee Lauder Companies, Inc.
 
  Type     Public
  Ticker     NYSE: EL
  Industry Cosmetics
  Founded 1946
  Headquarters New York, NY
  Locations 1,430 (2017)
  Revenues
$11.8bn (2017)
  Employees 4,600 (2017)
  Website esteelauder.com