Estee Lauder 2005 Annual Report Download - page 56

THE EST{E LAUDER COMPANIES INC.
FORWARD-LOOKING INFORMATION
We and our representatives from time to time make written
or oral forward-looking statements, including statements
contained in this and other filings with the Securities and
Exchange Commission, in our press releases and in our
reports to stockholders. The words and phrases “will likely
result,” “expect,” “believe,” “planned,” “may,” “should,”
“could,” “anticipated,” “estimate,” “project” or similar
expressions are intended to identify “forward-looking state-
ments” within the meaning of the Private Securities Litiga-
tion Reform Act of 1995. These statements include, without
limitation, our expectations regarding sales, earnings or
other future financial performance and liquidity, product
introductions, entry into new geographic regions, informa-
tion systems initiatives, new methods of sale and future
operations or operating results. Although we believe that
our expectations are based on reasonable assumptions
within the bounds of our knowledge of our business and
operations, actual results may differ materially from our
expectations. Factors that could cause actual results to dif-
fer from expectations include, without limitation:
(1) increased competitive activity from companies in the
skin care, makeup, fragrance and hair care businesses,
some of which have greater resources than we do;
(2) our ability to develop, produce and market new
products on which future operating results may depend;
(3) consolidations, restructurings, bankruptcies and reor-
ganizations in the retail industry causing a decrease in the
number of stores that sell our products, an increase in
the ownership concentration within the retail industry,
ownership of retailers by our competitors and ownership
of competitors by our customers that are retailers;
(4) shifts in the preferences of consumers as to where and
how they shop for the types of products and services
we sell;
(5) social, political and economic risks to our foreign or
domestic manufacturing, distribution and retail operations,
including changes in foreign investment and trade
policies and regulations of the host countries and of the
United States;
(6) changes in the laws, regulations and policies that affect,
or will affect, our business, including changes in accounting
standards, tax laws and regulations, trade rules and customs
regulations, and the outcome and expense of legal or
regulatory proceedings, and any action we may take as
a result;
(7) foreign currency fluctuations affecting our results of
operations and the value of our foreign assets, the relative
prices at which we and our foreign competitors sell prod-
ucts in the same markets and our operating and manufac-
turing costs outside of the United States;
(8) changes in global or local conditions, including those
due to natural or man-made disasters or energy costs, that
could affect consumer purchasing, the willingness of con-
sumers to travel, the financial strength of our customers or
suppliers, our operations, the cost and availability of capital
which we may need for new equipment, facilities or acqui-
sitions, the cost and availability of raw materials and the
assumptions underlying our critical accounting estimates;
(9) shipment delays, depletion of inventory and increased
production costs resulting from disruptions of operations at
any of the facilities which, due to consolidations in our
manufacturing operations, now manufacture nearly all of
our supply of a particular type of product (i.e., focus facto-
ries);
(10) real estate rates and availability, which may affect our
ability to increase the number of retail locations at which
we sell our products and the costs associated with our
other facilities;
(11) changes in product mix to products which are less
profitable;
(12) our ability to acquire or develop new information and
distribution technologies, on a timely basis and within our
cost estimates;
(13) our ability to capitalize on opportunities for improved
efficiency, such as globalization, and to integrate acquired
businesses and realize value therefrom;
(14) consequences attributable to the events that are cur-
rently taking place in the Middle East, including terrorist
attacks, retaliation and the threat of further attacks or
retaliation; and
(15) the impact of repatriating certain of our foreign earn-
ings to the United States in connection with The American
Jobs Creation Act of 2004.
We assume no responsibility to update forward-looking
statements made herein or otherwise.
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