Estee Lauder 2010 Annual Report Download - page 4

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Dear Fellow Stockholders:
Fiscal 2010 was a tremendous year for The Estée Lauder Companies. Guided by the values upon which our
Company was founded and our long-term corporate strategy, we met the challenges of the still-turbulent
economy by generating some of our best results in years. Through the invaluable contributions of our
outstanding employees and the leadership of our new President and Chief Executive Officer, Fabrizio Freda,
I am proud to report that we gained share in many important countries and channels and achieved strong
sales and profits. Importantly, we achieved these goals while exercising prudent financial decision-making
and managing costs.
We began fiscal 2010 with the launch of the Estée Lauder brand’s upgraded Advanced Night Repair,
which
turned out to be the largest and most successful global launch in our history. Simultaneously,
we implemented an ambitious, yet cautious, plan to reflect the prevailing economic conditions. Through
careful planning and dedicated efforts, we eliminated more than $350 million of costs. This enabled us to
focus our resources on our most promising global opportunities and deliver strong profits and operating
cash flow. We also moved forward with restructuring and resizing our organization, changing how we oper-
ate to be a more efficient company.
3
EXECUTIVE
CHAIRMAN’S
LETTER