Estee Lauder 2008 Annual Report Download - page 63

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THE EST{E LAUDER COMPANIES INC. 61
The following table is a comparative summary of operating results from continuing operations for fi scal 2008, 2007
and 2006 and refl ects the basis of presentation described in Note 2 and Note 21 to the Notes to Consolidated Financial
Statements for all periods presented. Products and services that do not meet our defi nition of skin care, makeup, fragrance
and hair care have been included in the “other” category.
YEAR ENDED JUNE 30 2008 2007 2006
(In millions)
NET SALES
By Region:
The Americas $3,711.5 $3,560.9 $3,446.4
Europe, the Middle East & Africa 3,006.7 2,493.4 2,147.7
Asia/Pacifi c 1,192.6 983.2 869.7
$7,910.8 $7,037.5 $6,463.8
By Product Category:
Skin Care $2,996.8 $2,601.0 $2,400.8
Makeup 3,000.4 2,712.7 2,504.2
Fragrance 1,432.0 1,308.6 1,213.3
Hair Care 427.1 377.1 318.7
Other 54.5 38.1 26.8
$7,910.8 $7,037.5 $6,463.8
OPERATING INCOME
By Region:
The Americas $ 228.3 $ 336.4 $ 344.1
Europe, the Middle East & Africa 433.1 321.4 297.5
Asia/Pacifi c 149.7 93.2 70.1
Special charges related to cost savings initiative * (0.4) (1.1) (92.1)
$ 810.7 $ 749.9 $ 619.6
By Product Category:
Skin Care $ 405.6 $ 341.5 $ 346.4
Makeup 359.4 339.3 329.4
Fragrance 36.2 28.1 7.7
Hair Care 11.5 42.5 26.5
Other (1.6) (0.4) 1.7
Special charges related to cost savings initiative * (0.4) (1.1) (92.1)
$ 810.7 $ 749.9 $ 619.6
The following table presents certain consolidated earnings data as a percentage of net sales:
YEAR ENDED JUNE 30 2008 2007 2006
Net sales 100.0% 100.0% 100.0%
Cost of sales 25.2 25.2 26.1
Gross profi t 74.8 74.8 73.9
Operating expenses:
Selling, general and administrative 64.5 64.1 62.9
Special charges related to cost savings initiative — — 1.4
64.5 64.1 64.3
Operating income 10.3 10.7 9.6
Interest expense, net 0.9 0.6 0.4
Earnings before income taxes, minority interest and discontinued operations 9.4 10.1 9.2
Provision for income taxes 3.3 3.6 4.0
Minority interest, net of tax (0.1) (0.1) (0.2)
Net earnings from continuing operations 6.0 6.4 5.0
Discontinued operations, net of tax — — (1.2)
Net earnings 6.0% 6.4% 3.8%
*Refer to the discussion in Note 8 to the Notes to Consolidated Financial Statements.