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60 THE EST{E LAUDER COMPANIES INC.
FISCAL 2013 AS COMPARED WITH FISCAL 2012
NET SALES
Net sales increased 5%, or $468.1 million, to $10,181.7
million, reflecting growth in all of our major product
categories within each geographic region. Excluding
the impact of foreign currency translation, net sales
increased 6%.
The following discussions of Net Sales by Product
Categories and Geographic Regions exclude the impact of
returns associated with restructuring activities of $1.5
million and $2.1 million recorded during fiscal 2013 and
fiscal 2012, respectively. We believe the following analysis
of net sales better reflects the manner in which we con-
duct and view our business.
Product Categories
Skin Care Net sales of skin care products increased 6%,
or $240.1 million, to $4,465.3 million. The fiscal 2013
launches of Perfectionist CP+R, Advanced Time Zone,
Advanced Night Repair Eye Serum Infusion and the
Optimizer line of products from Estée Lauder contributed
approximately $273 million, combined, to the increase.
Also contributing approximately $99 million, combined,
to the increase were the fiscal 2013 launches of The
Moisturizing Soft Cream from La Mer and Even Better
Eyes Dark Circle Corrector from Clinique. Partially offset-
ting these increases were lower sales of Perfectionist CP+
Serum and Time Zone, as well as Idealist Even Skintone
Illuminator, which was a new launch in fiscal 2012, from
Estée Lauder of approximately $162 million, combined.
Excluding the impact of foreign currency translation, skin
care net sales increased 7%.
Makeup Makeup net sales increased 5%, or $180.1 mil-
lion, to $3,876.9 million, primarily reflecting an increase in
net sales from our makeup artist brands of approximately
$156 million, combined. The fiscal 2013 launches of High
Impact Extreme Volume Mascara and Chubby Stick
Intense from Clinique and Pure Color Vivid Shine Lipstick
from Estée Lauder contributed approximately $47 million
of incremental sales, combined to the increase. Partially
offsetting these increases were lower sales of Repairwear
Laser Focus Makeup from Clinique and Pure Color Eye-
shadow and Doublewear Stay-In-Place Makeup from
Estée Lauder, all of which were new launches in fiscal
2012, of approximately $45 million, combined. Excluding
the impact of foreign currency translation, makeup net
sales increased 6%.
Fragrance Net sales of fragrance products increased 3%,
or $39.8 million, to $1,310.8 million. Incremental sales
from the fiscal 2013 launches of Zegna Uomo, DKNY Be
Delicious So Intense, Tommy Hilfiger Freedom Men and
Coach Love contributed approximately $30 million,
combined, to the increase. Higher sales of Jo Malone and
Tom Ford fragrances contributed approximately $60
million, combined, to the increase. These increases were
partially offset by lower sales of Estée Lauder Sensuous
Nude and DKNY Golden Delicious, both of which were
new launches in fiscal 2012, as well as pureDKNY, of
approximately $52 million, combined. Excluding the
impact of foreign currency translation, fragrance net sales
increased 4%.
Hair Care Hair care net sales increased 6%, or $26.5
million, to $488.9 million, primarily reflecting the contin-
ued success of the Invati line of products and the fiscal
2013 launches of Pure Abundance Style Prep and
Be Curly Curl Controller from Aveda. The category also
benefited from sales generated from expanded global dis-
tribution, in particular, to salons for Aveda and multi-brand
specialty retailers for Bumble and bumble. Partially offset-
ting these increases were lower sales of Bumble and bum-
ble brand products to salons and lower net sales of Ojon
brand products due, in part, to a reduction in our business
in the DRTV channel. The impact of foreign currency
translation on hair care net sales was de minimis.
Geographic Regions
Net sales in the Americas increased 5%, or $201.8 million,
to $4,302.9 million. The increase during fiscal 2013 was
primarily attributable to growth in the United States of
approximately $172 million, due in large part to product
Year Ended June 30
2014 2013 Variance % Change
Diluted net earnings per common share, as reported $3.06 $2.58 $ .48 19%
Accelerated orders associated with SMI rollout (.21) — (.21)
Venezuela fiscal 2014 remeasurement charge .10 — .10
Total charges (adjustments) associated with
restructuring activities (.00) .03 (.03)
Interest expense on debt extinguishment — .03 (.03)
Diluted net earnings per common share, as adjusted $2.95 $2.64 $ .31 12%
20142014
$3.06$3.06
(.21)(.21)
.10.10
(.00)(.00)
——
$2.95$2.95