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70 THE EST{E LAUDER COMPANIES INC.
Year Ended June 30 % Change
in Constant
2015 2014 Variance % Change Currency
(Not adjusted for differences caused by rounding)
Diluted net earnings per common share, as reported $2.82 $3.06 $(.24) (8)% 0%
Accelerated orders associated with SMI rollout .21 (.21) .42
Venezuela remeasurement charge .01 .10 (.08)
Total adjustments associated with
restructuring activities — (.00) —
Diluted net earnings per common share, as adjusted $3.05 $2.95 $ .10 3% 12%
The following table reconciles the change in net sales by product category and geographic region, as reported, to the
change in net sales excluding the effects of foreign currency translation and the impact of the accelerated orders:
As Reported
Add: Impact Add: % %
Year ended Year ended of foreign Impact of Variance Change Change
June 30, June 30, currency accelerated as as as
2015 2014 Variance translation orders adjusted reported adjusted
(In millions)
Product Category:
Skin Care $ 4,478.7 $ 4,769.8 $(291.1) $215.4 $182.8 $107.1 (6)% 2%
Makeup 4,304.6 4,210.2 94.4 204.9 130.8 430.1 2 10
Fragrance 1,416.4 1,425.0 (8.6) 74.7 42.0 108.1 (1) 8
Hair Care 530.6 515.6 15.0 22.0 1.0 38.0 3 7
Other 50.1 48.1 2.0 2.1 — 4.1 4 9
Total $10,780.4 $10,968.7 $(188.3) $519.1 $356.6 $687.4 (2)% 6%
Region:
The Americas $ 4,513.8 $ 4,572.3 $ (58.5) $154.5 $168.6 $264.6 (1)% 6%
Europe, the Middle
East & Africa 4,086.4 4,163.7 (77.3) 285.2 135.8 343.7 (2) 8
Asia/Pacific 2,180.2 2,232.7 (52.5) 79.4 52.2 79.1 (2) 4
Total $10,780.4 $10,968.7 $(188.3) $519.1 $356.6 $687.4 (2)% 6%
FISCAL 2014 AS COMPARED WITH FISCAL 2013
NET SALES
Net sales increased 8%, or $787.1 million, to $10,968.8
million, primarily reflecting growth in all of our product
categories and geographic regions. The impact of foreign
currency translation on the change in net sales was
de minimis.
In advance of our July 2014 implementation of SMI
at certain of our locations and to provide adequate
safety stock to mitigate any potential short-term business
interruption associated with the rollout, certain of our
retailers accelerated their orders during the fiscal 2014
fourth quarter. Those additional orders, which totaled
approximately $178 million, would have occurred in our
fiscal 2015 first quarter and created a favorable compari-
son to fiscal 2013. Adjusting for the impact of the acceler-
ated orders, reported net sales would have increased
6%, with growth in all of our product categories and
geographic regions.
Product Categories
The change in net sales in each product category bene-
fited from the accelerated orders during fiscal 2014, as
discussed above, as follows: skin care, approximately $91
million; makeup, approximately $65 million; fragrance,
approximately $21 million; and hair care, approximately
$1 million.
Skin Care Net sales of skin care products increased
7%, or $304.5 million, to $4,769.8 million. The fiscal
2014 launches of Advanced Night Repair Synchronized
Recovery Complex II and Micro Essence Skin Activating
Treatment Lotion from Estée Lauder, and Dramatically
Different Moisturizing Lotion + and reformulated Repair-
wear Laser Focus from Clinique contributed approxi-
mately $615 million of incremental sales, combined. Also
contributing to the increase were higher sales of La Mer
products and the Nutritious line of products from Estée
Lauder of approximately $144 million, combined. Partially
offsetting these increases were lower sales of certain