Estee Lauder 2008 Annual Report Download - page 7

Download and view the complete annual report

Please find page 7 of the 2008 Estee Lauder annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 120

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

Dear Fellow Stockholders:
The Estée Lauder Companies’ achievements in fi scal 2008 were outstanding by any standard.
Global sales reached an all-time record of nearly $8 billion and earnings per share rose by
double digits. Our growth was broad-based, with particular strength in emerging markets and
new distribution channels. These results are even more notable given the multiple economic
challenges—particularly in the United States. We benefi ted from our ongoing strategy to build
a diversifi ed business base that is multi-national, multi-channel and multi-brand.
After a year of solid accomplishments, it is important to ask what lies ahead. How will we lead
the change necessary for growth? The answer is that we must commit ourselves to delivering
even greater growth in the future — not just top-line growth, but strong, sustainable and more
profi table growth. And, to take our business to the next level, it is crucial that we stay keenly
focused on the long term, understanding that we are managing for the next quarter century,
not for the next fi scal quarter.
STRONG FOUNDATION, STRATEGIC FOCUS
Long-term entrepreneurial growth is in our blood— from our founder to the front lines at the
counter. Creativity is one of our outstanding competitive assets. We plan to deliver profi table
growth by marrying these fundamental strengths with more sharply focused strategies. Those
strengths include our ability to listen to consumers, our creative passion and our talented,
dedicated employees. To capitalize on our strengths, we will align our strategies more acutely:
prioritizing our investments, exercising greater fi nancial discipline and operating in a more
closely aligned manner across business units and borders.
I am delighted that Fabrizio Freda has joined us as President and Chief Operating Offi cer to
help drive these strategies forward. Fabrizio is a highly accomplished executive with more than
two decades of experience in global consumer products and luxury goods companies. His
international perspective and operational and fi nancial insight will help us better align our
goals and allocate investments to those brands, regions and channels that offer exceptional
growth opportunities. With an eye toward ensuring continuity and consistent superior perfor-
mance over the long term, I have mapped out a succession plan that anticipates Fabrizio
becoming Chief Executive Offi cer within two years of his hire.
With our strong foundation and sharper alignment, we will continue our efforts to diversify
across regions, channels and product categories. This approach has provided numerous
avenues of opportunity in the past and I am confi dent it will be the source of even greater
profi table growth in the years ahead.
5
CHIEF EXECUTIVE’S REVIEW