Estee Lauder 2015 Annual Report Download - page 14

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11
The Compass keeps our boat in the winds of growth, enabling us to focus on delivering strong near-
term results, while also laying the groundwork for sustainable, profitable growth over time.
POWERFUL GROWTH IN MAKEUP
AND LUXURY BRANDS
Many of our growth engines contributed to our strong performance in fiscal 2015, reflecting the
depth and breadth of our business, and the strength of our balanced portfolio, which enables us to
remain agile and nimble.
We are the global leader in prestige makeup, which continues to be one of our most compelling
opportunities. Our brands were well-positioned to benefit from the exceptional growth of the
category, where our sales increased 10 percent in constant currency during the year, adjusted for the
accelerated sales orders, led by M·A·C’s continued extraordinary performance.
We saw strong growth in lipstick sales across our brands, with products such as Estée Lauder’s Pure Color
Lip Envy, Tom Ford Beauty’s Lips & Boys collection and M·A·C’s Ruby Woo lipstick leading this trend.
Our most aspirational luxury brands were also standout performers this year, with sales from Tom Ford,
La Mer and Jo Malone London showing strong growth. La Mer, one of our luxury skin care brands, grew
retail sales by double-digit rates in fiscal 2015. La Mer’s Treatment Lotion is the most popular SKU in
Asia in our distribution, with new marketing assets driving sales and recruiting new consumers.
GROWTH IN HERITAGE MARKETS:
THE UNITED STATES AND THE UNITED KINGDOM
We have generated growth in our heritage markets through our ability to be agile and nimble and, in
fact, approach them like emerging markets: by identifying and leveraging our strengths in the fastest
areas of growth. Using our proprietary consumer insights and cutting edge market research, we are
strategically deploying our brands, and tailoring product assortments and communications to fit local
tastes and preferences in cities and neighborhoods with ethnic diversity.
In the United States, which accounts for approximately 37 percent of our sales, we continued to
build our business in fiscal 2015 by concentrating our resources on the most populous and
prosperous states, including California, Texas and Florida, with products, brands and distribution
strategies
tailored to the unique characteristics of each market. Further, we are investing in and
testing various
omnichannel offerings to improve service and increase loyalty in the United States
and other
established markets.
Our team in the United Kingdom, our second largest market, is producing remarkable results, with
net sales in constant currency growing double-digits, by directing our resources and attention to
secondary cities and brands and products with the greatest potential. As one example, our team
recognized an opportunity to leverage the convergence of hospitality and art in retail, and launched
a Smashbox shop in Box Park Shoreditch, a pop-up mall with fashion and lifestyle stores and events
in East London, to better reach consumers directly and provide them with an immersive experience.
THE EST{E LAUDER COMPANIES INC.