Estee Lauder 2003 Annual Report Download - page 12

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11
We continued to improve in all regions and, for the first time in years, we benefited from the effect of
a weaker U.S. dollar.
•
In Europe, the Middle East & Africa, annual net sales increased 19% to $1.51 billion. In local currencies, sales
in the region rose 8%.
• In Asia/Pacific, annual net sales rose 8% to $657.8 million, while sales in local currency grew 3%.
• In the Americas, annual net sales increased 3% to $2.95 billion.
RESULTS BY PRODUCT CATEGORY
Our motto, “Bringing the Best to Everyone We Touch,” is imbedded in each of our more than 9,000
products. As a result, these products draw new consumers to our brands while building loyalty with our
long-standing consumers.
•
In fiscal year 2003, skin care benefited from a heightened interest in treatment products. Thanks in part to
the strong launches of Estée Lauder’s Perfectionist Correcting Serum for Lines/Wrinkles and Clinique’s
Repairwear Intensive Night Cream and Repairwear Intensive Night Lotion, our skin care sales were $1.89 billion,
up 11% on a reported basis and 7% on a constant currency basis.
• Makeup sales continued to be a growth engine for the Company.
Net sales of makeup products for the year were $1.91 billion, rising
7% on a reported basis and 4% on a constant currency basis.
Both M.A.C and Bobbi Brown performed extraordinarily well
during the fiscal year.
• The fragrance industry as a whole was challenged as consumers
made fewer impulse purchases given the economic environment
and the challenging market climate. Nevertheless, in fiscal 2003,
our fragrance business grew to $1.06 billion, up 4% on a reported basis, but was relatively unchanged on
a constant currency basis. We continue to believe in our ability to pick the winners in this category and
have four of the top ten prestige fragrances for women sold in department stores in the United States.
• Hair care continued to show growth. For fiscal year 2003, our reported hair care sales were up 6% to $228.9
million. We continue to see a vast opportunity in the estimated $4.6 billion worldwide prestige hair care and
scalp treatment business. We are building our two hair care brands — Aveda and Bumble and bumble — to
capitalize on this opportunity.
COMMUNICATING WITH CONSUMERS
We are incredibly fortunate to have intensely loyal consumers who are passionate about our brands. Over the
last year, we reached more consumers through more diverse and interconnected communications channels
than ever before. For example, the Internet has proven to be an effective and efficient way to build rapport
with customers. While our e-commerce business grew 44% last year, the real Internet revolution is communi-
cation via on-line media. We are reaching consumers interested in our products on-line, telling them about
new launches, servicing them more extensively and inviting them to the counter.
WE ARE ABLE TO
INVEST AGGRESSIVELY
IN NEW VENTURES,
AS WELL AS GLOBAL
EXPANSION, BECAUSE
WE HAVE MANAGED
OUR RESOURCES WISELY.