Estée Lauder Group reports -17% decline in sales to end 2022.

The group's net sales reached 4.62 billion dollars for the second quarter, compared to 5.54 billion dollars for the same period last year. One of the key factors is the persistence of the pandemic in China, which was still very prominent in the country at the end of 2022. Low retail traffic, logistical hurdles in shipments, restricted tourist flows: the difficulties continued throughout the quarter, despite positive developments in several emerging markets. 

This negative trend will remain a constant throughout 2023, with sales forecast to decline by 5% to 7%.

Estée Lauder, which includes several high-end cosmetics giants such as Clinique, Bobbi Brown, La Mer and the trendy skincare brand Dr.Jart+, experienced a very mixed performance. One of the most affected sectors was skincare: despite moderate growth reported by some brands such as Bobbi Brown, all companies globally saw their results contract, including parent company Estée Lauder. The global skincare business saw its sales fall by 25% (2.4 billion dollars).

Losses were more contained in make-up products: Clinique's subdued performance was offset by the underperformance of Tom Ford Beauty. Overall, the make-up business was down by 9% ($1.3 billion).

The mixed figures are not only the result of issues related to the difficult international market. Numerous investments have also influenced the financial results. The group has invested particularly in retail - which has seen a marked recovery in all geographical areas - and in massive advertising campaigns across all channels.

The Estée Lauder Group's fiscal year 2021 saw sales growth of +13%.