The company’s products are sold in more than 150 countries and territories under the brands Estée Lauder, Aramis, Clinique, Tommy Hilfiger, MAC, Donna Karan New York (DKNY) and Michael Kors.
Estée Lauder has an estimated 15percent market share of global prestige beauty. It benefits from significant exposure to fast-growing markets such as China, as well as more sophisticated fashion and beauty preferences, fuelled by social media.
The high pricing power of Estée Lauder is evident in its high gross margin of about 80percent. This is indicative of strong brand equity and resilient high-end consumer spending.
Nearly a third of its gross profit is spent on advertising, merchandising, sampling, promotions and product development. The company generates a reliable 10percent net profit margin year after year.