Estee Lauder 2012 Annual Report Download - page 5
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Fiscal 2012 was another record year for The Estée
Lauder Companies. Thanks to our focused growth
strategy and strong business model, we achieved
sales gains in all regions and major product
categories, illustrating the broad strength of our
Company and the power of our brand portfolio.
prestige beauty worldwide and gained global
share against the competition. Overall, we grew
profitably in many of our most strategic areas,
including our largest brands and product
categories, as well as in key markets and
distribution channels, such as China, travel retail
and United States department stores. We
continued to exercise strong financial discipline,
allowing us to invest in new capabilities to support
our strategy for the long term and advance our
Strategic Modernization Initiative (SMI). We are
also pleased with the progress of the newest
additions to our brand portfolio, Smashbox and
Ermenegildo Zegna. We believe that both of these
brands hold great potential for us and we look
forward to growing their businesses globally.
As I reflect on our many successes of the year,
it is with a heavy heart that I look back on the
loss of a woman who embodied the heart and
soul of The Estée Lauder Companies — my mother,
Mrs. Evelyn H. Lauder. She carried the torch of
our Company’s heritage and deep family values.
Over the course of her more than 50 years
with our Company, she fostered in us a great
appreciation for the value of relationships and the
importance of giving back to our world at large.
This year, as we celebrate the 20th Anniversary of
3
Dear Fellow Stockholders,
For over 60 years, The
Estée Lauder Companies
has been committed to
working together, with all
of our stakeholders,
with uncompromising
ethics and integrity.
Our strong performance is a tribute to the
commitment and hard work of our employees, the
exceptional quality of our products and services,
the vision and outstanding leadership of my partner
and our President and Chief Executive Officer,
Fabrizio Freda, and the entire management team.
This year’s performance built upon our prior
success, and we achieved a number of milestones,
which enabled us to increase total stockholder
return. In the process, our Board authorized a
two-for-one stock split and raised the dividend by
40 percent. We grew net sales at double the rate of