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Estée Lauder Companies is blotting its way to the bank. Despite declining sales in the U.S., Estée Lauder said in its earnings report Monday that it expects overall sales to increase 7% to 8% in fiscal 2020 thanks to its international customers.
- With China leading the way, sales increased 23% since last year in Asia.
- In the Middle East and Europe, sales have increased 20% annually.
Where the middle class thrives, beauty survives. While Estée reorganizes its business in the U.S., middle class customers overseas have responded well to its hyper-localized marketing campaigns by buying up premium-label products.
- Estée’s distance from Main St. intrigued Wall St. Following Monday’s report, Estée Lauder stock reached an all-time high.
- Then, Estée Lauder heir Jane Lauder nabbed a spot behind Robert Kraft on the Bloomberg Billionaire Index. Monday’s stock surge brought her total fortune up to $4.3 billion.
Looking ahead...competitors are trying to follow Estée to new markets. Despite recent in-store facelifts, sales are stagnant at most beauty stores in the U.S.