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• Tara Simon will be promoted to the role of Global Brand President, Too Faced, effective July 1, 2022. She will continue to report directly to Fabrizio Freda, President and Chief Executive Officer, ELC.

• Jerrod Blandino and Jeremy Johnson, Co–Founders, Too Faced Cosmetics, will depart the brand to embark on new entrepreneurial projects and endeavors, effective June 30, 2022.

“Tara has been a fantastic leader at Too Faced since she joined the brand two years ago, and I know that she will continue to leverage her brand building expertise to drive an emotional connection with consumers through inspiring products and unique experiences. I am confident that under Tara’s leadership, Too Faced is well-positioned for its next phase of growth,” said Fabrizio Freda. “And we are so grateful for Jerrod and Jeremy’s outstanding work over the last six incredible years spent as part of the ELC family.”

Please read additional details below.

Tara Simon Promoted to Global Brand President, Too Faced

In her elevated role as Global Brand President, Tara will continue enabling her team to capture and realize fast-growing opportunities for the brand, while further contributing to the company’s category strategy for makeup.

Prior to joining Too Faced and ELC as Senior Vice President/General Manager, Too Faced, in 2020, Tara built an incredible career with ULTA Beauty, where she most recently served as Senior Vice President of Merchandising, Prestige Beauty.

Jerrod Blandino and Jeremy Johnson, Co-Founders, Too Faced Cosmetics, to Depart Brand

Twenty-four years after founding the iconic Too Faced brand, and after six years as part of The Estée Lauder Companies’ family, Jerrod Blandino and Jeremy Johnson will depart the brand and company effective June 30, 2022 to pursue other opportunities. As visionary creatives and entrepreneurs, Jerrod and Jeremy are looking forward to the next phase of their journey, as they will continue to leverage the founder spirit that has driven the success of all their endeavors.

Jerrod and Jeremy began their careers behind the counter of the Estée Lauder brand, where they quickly discovered the transformative power of makeup. Their unique artistry experience combined with their powerful entrepreneurial spirit inspired them to create a brand that celebrates individuality and sparks joy. Today, Too Faced remains driven by this same vision, and is recognized as one of the most dynamic makeup brands in the world delivering products that inspire playfulness and purpose, fueled by a culture of innovation, creativity, and fun.

“Jerrod and Jeremy started the brand with a simple, yet compelling creative concept, and transformed it into something that is truly extraordinary,” said William P. Lauder, Executive Chairman, ELC. “We look forward to seeing where the next phase of their journey takes them and wish them all the best as they set out on new adventures.”

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Sara Moss, Vice Chairman, The Estée Lauder Companies

Like ELC’s founder, the visionary Mrs. Estée Lauder, we are ready to meet these challenges. As a company, we feel a collective sense of urgency to reaffirm our gender equity commitments published in 2021. As part of the United Nations Foundation’s Five for 5 Initiative, our commitments reaffirm our support of UN Sustainable Development Goal 5, to achieve gender equality and empowering all women and girls, by 2030.

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As part of its ongoing commitment to advancing sustainability and innovation across its operations and the personal care products industry, The Estée Lauder Companies (ELC) has released its Green Score methodology to assess and measure the sustainability of ingredients and formulas based on green chemistry principles.

Years of dedicated development and evaluation have culminated in the publication of the peer-reviewed manuscript, “Applying Green Chemistry to Raw Material Selection and Product Formulation at The Estée Lauder Companies,” newly published in Green Chemistry, the Royal Society of Chemistry’s journal. The authors transparently share the Green Score’s methodology, data sources and unique framework to quantitively evaluate ingredients and formulas across its in-house portfolio of prestige beauty products through the lenses of human health, ecosystem health and the environment. By publicly sharing ELC’s approach, the company aims to encourage sustainable innovation across the consumer products industry.

“At The Estée Lauder Companies, we are committed to creating breakthrough, high-performing products that embed sustainability throughout their lifecycle. Our unique Green Score measurement and assessment tool enables us to integrate green chemistry into our product development process and further enhance the sustainability of our products,” said George Daher, Senior Vice President, Product Safety, Regulatory Affairs and Green Chemistry, The Estée Lauder Companies. “We hope that by publishing this methodology, our approach can be adopted, built upon and scaled by others across our industry to further advance sustainability and transparency.”

ELC will continue to use the Green Score to inform its decision-making, communicate expectations with suppliers, and prioritize raw materials, product types as well as product forms. The methodology is currently being leveraged by its formulation laboratories around the world to guide innovation for greener alternatives and to assess new product launches while maintaining performance standards. Green Scores have already been calculated for all individual materials and formulations across ELC’s in-house skincare, hair care and makeup portfolios. Additionally, all formulators throughout the organization have been trained to use the quantitative tool to assess the sustainability of their formulations in real time, so they can make educated choices about which ingredients to include.

The Green Score has also benefited from validation by ELC’s Green Chemistry Scientific Advisory Board, comprised of academic experts in green chemistry from its key global regions – China, Europe, North America and Latin America.

Dr. Paul Anastas, Professor in the Practice of Chemistry for the Environment at Yale University, who serves on the scientific advisory board and co-authored the manuscript, explains, “This tool has taken a concept that is quite complex and distilled it into a useful metric that not only assesses products that already exist but also informs how new, higher-performing products can be designed in the future.”

ELC’s Green Score is part of the company’s green chemistry program and broader commitment to Environmental, Social and Governance (ESG). The company has built a solid foundation to advance its objective of embedding green chemistry principles throughout the product-development process across its internal R&D and Supply Chain operations to continuously improve the environmental and human health profiles of its formulations while improving performance and delivering on consumer expectations. The Green Score complements existing social impact and sustainability initiatives by employing a scientifically robust and quantifiable metric for measuring sustainability of formulation, which is a material element of its value creation.

The ELC Green Score will be used to create metrics and track progress against formulation commitments to be outlined in the company’s Fiscal 2022 Social Impact & Sustainability Report. To learn more about ELC’s commitment to sustainability, access the Fiscal 2021 Social Impact & Sustainability Report.

“This is a really promising paper that shows how chemistry is helping established companies make real change in improving their green credentials,” said Dr. Andrew Shore, Executive Editor of Green Chemistry at the Royal Society of Chemistry. “The Estée Lauder Companies has produced a plan that shows how seriously they are taking their responsibility to protect the environment and their research was warmly received by the reviewers and members of the journal editorial board.”

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Organic Net Sales¹ Grew 18% and Adjusted Diluted EPS Increased 29% in Constant Currency

Positioned to Deliver Strong Holiday and Key Events

Confirming Full Year Outlook

The Estée Lauder Companies Inc. (NYSE: EL) today reported net sales of $4.39 billion for its first quarter ended September 30, 2021, an increase of 23% from $3.56 billion in the prior-year period. Net sales grew in every region and product category, reflecting the recovery in brick-and-mortar retail stores, primarily in western markets. Organic net sales increased 18%.

The Company reported net earnings of $692 million, compared with net earnings of $523 million in the prior-year period. Diluted net earnings per common share was $1.88, compared with $1.42 reported in the prior-year period. Excluding restructuring and other charges and adjustments as detailed on page 3, adjusted diluted earnings per common share increased 31% to $1.89, and rose 29% in constant currency.

Fabrizio Freda, President and Chief Executive Officer said, “We delivered excellent performance to begin fiscal 2022, despite the increased volatility and variability globally during the quarter, by virtue of our dynamic multiple engines of growth strategy. Our growth engines increasingly diversified, as we expected. Makeup, developed markets in the West, and brick-and-mortar reignited and complemented momentum in Skin Care, Fragrance, mainland China, Travel Retail in Asia/Pacific, and global Online². Impressively, relative to the pre-pandemic first quarter of fiscal 2020, the overall business is much bigger and more profitable.

Thirteen brands contributed double-digit organic sales growth versus the prior-year period, demonstrating the breadth of strength across our portfolio. Estée Lauder and M·A·C drove Makeup’s emerging renaissance, while La Mer and Clinique delivered stand-out results in Skin Care. Fragrance soared double-digits in every region, driven by Tom Ford Beauty and Jo Malone London. Our hero products performed exceptionally well and our innovation proved, once more, to uniquely capture consumer desires.”

Freda emphasized, “Looking ahead, we remain focused on the safety and well-being of our employees and consumers. For fiscal 2022, we continue to expect strong net sales and adjusted earnings per share growth with margin expansion. Our confidence in the long-term growth opportunities for global prestige beauty and our Company is reflected in the announcement today to raise the quarterly dividend.”

Freda concluded, “Today, we will release our Fiscal 2021 Social Impact and Sustainability Report. We are incredibly inspired by the achievements of our employees around the world in realizing great progress towards our social impact and sustainability commitments and goals.”

COVID-19 Business Update
The COVID-19 pandemic continued to disrupt the Company’s operating environment, impacting retail traffic and consumer preferences in the first quarter of fiscal 2022. The resurgence of COVID-19 cases and the rapid spread of the Delta variant in most parts of the world led to government restrictions to prevent further spread of the virus. These restrictions included the intermittent closure of businesses deemed non-essential, curtailment of travel, social distancing and quarantines.

Retail Impact
While most brick-and-mortar retail stores globally that sell the Company’s products, whether operated by the Company or its customers, were open during much of the first quarter of fiscal 2022, there were intermittent closures throughout the world. More specifically, in Continental Europe, much of Latin America and most of the Asia/Pacific region, many retail stores were temporarily closed for some period during the quarter due to the resurgence of COVID-19 cases. In much of Continental Europe and parts of the Asia/Pacific region, retail locations gradually reopened later in the quarter with capacity and other safety restrictions in place. Globally, in areas where stores were open, consumer traffic has not recovered to the pre-COVID-19 pandemic levels.

While international passenger traffic remained largely curtailed globally, passenger traffic in Europe, the Middle East & Africa and The Americas was somewhat improved, albeit significantly below pre-COVID-19 pandemic levels. The improvement was due, in part, to an increase in summer holiday travel as government restrictions were lifted, most notably in the United Kingdom, the United States, the Caribbean and Mexico. In Asia/Pacific, a surge in COVID-19 cases led to increased travel restrictions during much of the quarter.

Overall, online continued to grow led by areas where COVID-19 restrictions led to greater brick-and-mortar closures. Online sales were nearly double the pre-COVID level of fiscal 2020 first quarter.

Consumer Preferences
The COVID-19 pandemic-related closures of offices, retail stores and other businesses and the significant decline in social gatherings have influenced consumer preferences and practices. While the demand for makeup improved significantly versus the prior year, it continues to be the only category that remains below the pre-COVID-19 pandemic period, given fewer makeup usage occasions and ongoing mask wearing, while skin care, fragrance and hair care have all grown from pre-pandemic levels.

Supply Chain
The COVID-19 pandemic has contributed to global transportation delays due to port congestion, labor and container shortages, and shipment delays. As a result, higher transportation and logistics costs are expected to negatively impact cost of sales and operating expenses in the remainder of fiscal 2022. The Company expects to mitigate most of the impact to its business and costs through strategic price increases, product mix, timing of shipments, use of air freight and less congested ports, and cost savings in other areas.

Fiscal 2022 First Quarter Results
Organic net sales growth represents adjusted net sales excluding non-comparable impacts of acquisitions, divestitures and brand closures (notably DECIEM) as well as the impacts from currency.

Adjusted diluted earnings per common share excludes restructuring and other charges as detailed in the following table.

Net sales and operating income in the Company’s product categories and regions outside of the United States benefited from a weaker U.S. dollar in relation to most currencies.

Total reported operating income was $935 million, a 33% increase from $705 million in the prior-year period. In constant currency, adjusted operating income increased 29%, primarily reflecting higher net sales and excluding the following items:

• Fiscal 2022 first quarter: $6 million of restructuring and other charges
• Fiscal 2021 first quarter: $9 million of restructuring and other charges and adjustments
• The favorable impact of currency translation of $18 million.

Skin Care

• Skin care net sales grew across every region, primarily led by La Mer and Clinique.
• The non-comparable impacts of net sales related to acquisitions, divestitures and brand closures contributed approximately 6 percentage point to net sales growth.
• Strong double-digit growth from La Mer reflected the brand’s significant strength with Chinese consumers. Net sales growth was driven by increases in hero products, including Crème de la Mer, The Moisturizing Soft Cream, and The Treatment Lotion. The launch of The Hydrating Infused Emulsion and targeted expanded consumer reach, including the launch on a new online platform in Southeast Asia, also contributed to growth.
• Clinique delivered double-digit growth driven by strong demand for its hero products, including Even Better Clinical Radical Dark Spot Corrector + Interrupter, and the launch of the Smart Clinical Repair Wrinkle Correcting Serum.
• Skin care operating income decreased, primarily reflecting product mix, strategic investments in advertising and promotional activities and difficult comparisons to a prior year launch, largely offset by higher net sales from La Mer.

Makeup

• Makeup net sales increased, reflecting a nascent recovery in western markets as usage occasions increased and the category benefited from the easier comparisons to the prior year. The increase was led by strong double-digit sales growth from Estée Lauder and M·A·C as COVID-19 restrictions eased somewhat and social events began to recover in certain locations.
• Growth from Estée Lauder was fueled by the Double Wear and Futurist foundation product lines as well as the successful launches of Double Wear Sheer Long-Wear Foundation and Pure Color Whipped Matte Lip Color.
• M·A·C’s growth reflected successful marketing campaigns to drive the makeup renaissance as COVID-19 restrictions subside, with particular strength in face and eye products.
• Makeup operating income increased, primarily reflecting higher net sales, partially offset by strategic investments to support the makeup recovery.

Fragrance

• Net sales grew in every region and across virtually all brands that sell fragrances, driven by continued resilience in luxury fragrance, easy comparisons versus the prior-year period, and the timing of shipments, including holiday shipments.
• Tom Ford Beauty grew strong double-digits, reflecting strength in Private Blend, including Oud Wood and Lost Cherry, and Signature, including Black Orchid. The launch of Ombre Leather Parfum and accelerated growth in emerging markets also contributed to growth.
• Jo Malone London’s net sales grew double digits primarily driven by strength in colognes, particularly in hero franchises like Wood Sage & Sea Salt and English Pear & Freesia. Bath & Body and Home also delivered strong growth reflecting consumer demand for home fragrance products during the pandemic.
• Designer fragrances growth primarily reflected timing of holiday shipments as well as easy comparisons in travel retail versus the prior year.
• Net sales from Le Labo and Estée Lauder rose strong double digits with growth primarily reflecting the opening of brick-and-mortar, improved traffic to those retail locations and initial shipments of Estée Lauder’s The Luxury Collection.
• Kilian Paris’ net sales nearly doubled, driven by retail reopening and demand for hero products, including Love, Don’t be Shy, and the successful launch of The Liquors franchise.
• Fragrance operating income increased, driven primarily by higher net sales partly offset by strategic investments to support brick-and-mortar reopening.

Hair Care

• Hair care net sales rose, reflecting increases from both Bumble and bumble and Aveda primarily due to the reopening of brick-and-mortar salons and retail.
• Hair care operating results were flat reflecting higher net sales offset by strategic investments to support the recovery as brick-and-mortar reopens.

The Americas

• Net sales grew throughout the region as brick-and-mortar largely reopened and traffic began to recover as government restrictions eased in many parts of the region. Growth in the region was led by double-digit increases in the United States and Latin America.
• The non-comparable impacts of net sales related to acquisitions, divestitures and brand closures contributed approximately 9 percentage point to net sales growth.
• Brick-and-mortar sales increased strong double digits, more than offsetting a modest decline in organic online sales. Brick-and-mortar benefited from a year-over-year increase in open retail locations as well as improved traffic in those locations. Logistics constraints also caused some retailers to increase orders, including accelerating holiday purchases.
• In North America, sales grew in every product category. The fragrance category continued to deliver double-digit growth, hair care increased double digits and skin care growth remained strong. Makeup, which was disproportionately impacted by the challenges stemming from the COVID-19 pandemic, returned to growth with a strong double-digit increase.
• In Latin America, sales grew double digits in every market and every category.
• Operating income in The Americas increased, primarily reflecting higher nets sales partially offset by strategic investments to support the reopening of brick-and mortar retail and the makeup recovery.

Europe, the Middle East & Africa

• Net sales grew in virtually every market, led by the United Kingdom, Russia and the Middle East. The growth reflects recovery in brick-and-mortar as vaccination rates rose compared to the prior year when retail traffic was negatively impacted by COVID-19.
• The non-comparable impacts of net sales related to acquisitions, divestitures and brand closures contributed approximately 2 percentage point to net sales growth.
• Sales increased in every category led by fragrance and makeup.
• Global travel retail sales increased double digits reflecting continued growth in Asia/Pacific, despite a surge in COVID-19 cases that led to increased travel restrictions there during much of the first quarter of fiscal 2022, as well as the partial return of summer holiday travel in Europe, the Middle East & Africa and The Americas.
• Organic online sales growth slowed from the fourth quarter of fiscal 2021, but remained positive, as brick-and-mortar recovered.
• Operating income increased, primarily driven by higher net sales partially offset by strategic investments behind key hero franchises and to support the reopening of brick-and-mortar retail.

Asia/Pacific

• Net sales growth primarily reflected increases in Greater China and Korea as COVID-related retail store closures in the rest of the region negatively impacted growth.
• The non-comparable impacts of net sales related to acquisitions, divestitures and brand closures contributed approximately 1 percentage point to net sales growth.
• Fragrance and skin care net sales grew double digits in the region and hair care increased single digit.
• The Company continued to focus its investments on digital marketing, resulting in strong double-digit online sales growth that more than offset the impact to brick-and-mortar from the resurgence of COVID-19 cases during the quarter.
• In mainland China, net sales grew double digits led by skin care and fragrance. Sales also increased double digits in nearly every channel.
• Operating income decreased, reflecting continued strategic investments despite increased headwinds from temporary restrictions due to COVID-19, which more than offset the higher net sales.

Cash Flows

• For the three months ended September 30, 2021, net cash flows provided by (used for) operating activities were $(81) million, compared with $358 million in the prior-year period, as working capital needs returned to a more normalized level for the first quarter, partially offset by higher earnings before taxes, excluding non-cash items.
• Capital Expenditures increased to $205 million compared to $116 million in the prior-year period, primarily driven by increased investment for a new manufacturing facility in Japan.
• The Company ended the quarter with $4 billion in cash and cash equivalents after returning $749 million cash to stockholders through dividends and share repurchases.

Outlook for Fiscal 2022 Second Quarter and Full Year
With multiple engines of growth across regions, brands, product categories and channels, the Company is well-positioned to continue to drive a gradual recovery as macro-conditions and market dynamics support it. The Company expects to invest in areas to support the recovery, including advertising, online, research and development and supply chain, to both drive growth in areas of opportunity and help nurture emerging trends in the rest of the business.

The full year outlook reflects the following assumptions:

• Global volatility and variability is expected to continue, including inflation, supply chain disruption and COVID-19 restrictions. In the context of this uncertain environment, the Company believes it can continue to mitigate emerging headwinds and manage through this environment while driving multiple engines of growth.
• A recovery of the makeup and hair care categories as countries reduce COVID-19 restrictions.
• Growth in developed markets in the west and in brick-and-mortar retail.
• Targeted new distribution throughout the year to retailers that provide broader consumer reach.
• A gradual resumption of international travel beginning later in the fiscal year.
• Benefit from a nearly full year incremental impact of DECIEM in net sales and operating results.
• Higher transportation and logistics costs are expected to negatively impact cost of sales and operating expenses in the remainder of fiscal 2022. The Company expects to mitigate most of the impact to its business and costs through strategic price increases, product mix, timing of shipments, use of air freight and less congested ports, and cost savings in other areas.
• Incremental savings from the Post-COVID Business Acceleration Program and reinvestment in advertising and capabilities.
• Full-year effective tax rate of approximately 23%.

The Company is mindful of ongoing risks related to the COVID-19 pandemic as well as risks related to social, economic and political matters, including restructurings and bankruptcies in the retail industry, geopolitical tensions, regulatory developments, global security issues, currency volatility, general economic challenges, including inflationary pressures and supply chain disruptions, and changes in consumer preferences that affect consumer spending in certain countries, channels and travel corridors. Longer-term, the Company expects to return to its growth targets of 6% to 8% sales growth, 50 basis points of operating margin expansion and double-digit adjusted diluted earnings per share growth in constant currency after a period of normalization as the impacts of COVID-19 subside.

Second Quarter Fiscal 2022

Sales Outlook

• Reported net sales are forecasted to increase between 11% and 13% versus the prior-year period.
• Organic net sales, which excludes the non-comparable impacts from acquisitions, divestitures and brand closures as well as the impact from currency, are forecasted to increase between 8% and 10%.

Earnings per Share Outlook

• Reported diluted net earnings per common share are projected to be between $2.47 and $2.59. Excluding restructuring and other charges and adjustments, diluted net earnings per common share are projected to be between $2.51 and $2.61.
  • The Company expects to take charges associated with previously approved restructuring and other activities. For the Post-COVID Business Acceleration Program, the charges are estimated to be between approximately $10 million to $20 million, equal to $.02 to $.04 per diluted common share.
• Adjusted diluted earnings per common share are expected to be flat to down 4% on a constant currency basis. The prior year effective tax rate included the one-time benefit associated with the retroactive application of changes in global intangible low-taxed income (“GILTI”) U.S. tax regulations.
  • Currency exchange rates are volatile and difficult to predict. Using September 30, 2021 spot rates for the second quarter of fiscal 2022, the currency impact on diluted earnings per share is expected to be negligible.
• The increase in ownership of DECIEM is also expected to be negligible to diluted earnings per common share.

Full Year Fiscal 2022

Sales Outlook

• Reported net sales are forecasted to increase between 12% and 15% versus the prior-year period. This is ahead of the Company’s long-term goal of 6% to 8% as the business begins to normalize as it recovers from the impacts of COVID-19.
• Organic net sales, which excludes the non-comparable impacts from acquisitions, divestitures and brand closures as well as the impact from currency, are forecasted to increase between 9% and 12%.

Earnings per Share Outlook

• Reported diluted net earnings per common share are projected to be between $7.09 and $7.30. Excluding restructuring and other charges and adjustments, diluted net earnings per common share are projected to be between $7.23 and $7.38.
  • The Company expects to take charges associated with previously approved restructuring and other activities. For the Post-COVID Business Acceleration Program, the charges are estimated to be between approximately $40 million to $70 million, equal to $.08 to $.14 per diluted common share.
• Adjusted diluted earnings per common share are expected to increase between 11% and 14% on a constant currency basis.
  • Currency exchange rates are volatile and difficult to predict. Using September 30, 2021 spot rates for fiscal 2022, currency is expected to be about $.04 accretive to diluted earnings per share.
• The increase in ownership of DECIEM is expected to be $.03 accretive to diluted earnings per common share.

Conference Call The Estée Lauder Companies will host a conference call at 9:30 a.m. (ET) today, November 2, 2021 to discuss its results. The dial-in number for the call is 888-294-4716 in the U.S. or 706-902-0101 internationally (conference ID number: 6086324). The call will also be webcast live at http://www.elcompanies.com/investors/events-and-presentations.

Cautionary Note Regarding Forward-Looking Statements
Statements in this press release, in particular those in “Outlook,” as well as remarks by the CEO and other members of management, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may address our expectations regarding sales, earnings or other future financial performance and liquidity, other performance measures, product introductions, entry into new geographic regions, information technology initiatives, new methods of sale, our long-term strategy, restructuring and other charges and resulting cost savings, and future operations or operating results. These statements may contain words like “expect,” “will,” “will likely result,” “would,” “believe,” “estimate,” “planned,” “plans,” “intends,” “may,” “should,” “could,” “anticipate,” “estimate,” “project,” “projected,” “forecast,” and “forecasted” or similar expressions.

Factors that could cause actual results to differ materially from our forward-looking statements include the following:

The Company assumes no responsibility to update forward-looking statements made herein or otherwise.

The Estée Lauder Companies Inc. is one of the world’s leading manufacturers, marketers and sellers of quality skin care, makeup, fragrance and hair care products. The Company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, Tommy Hilfiger, M·A·C, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin Paris, TOM FORD BEAUTY, Smashbox, Ermenegildo Zegna, AERIN, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+, and the DECIEM family of brands, including The Ordinary and NIOD.

ELC-F
ELC-E

This earnings release includes some non-GAAP financial measures relating to charges associated with restructuring and other activities. The following is a reconciliation between the non-GAAP financial measures and the most directly comparable GAAP measures for certain consolidated statements of earnings accounts before and after these items. The Company uses certain non-GAAP financial measures, among other financial measures, to evaluate its operating performance, which represent the way the Company conducts and views its business. Management believes that excluding certain items that are not comparable from period to period, or do not reflect the Company’s underlying ongoing business, provides transparency for such items and helps investors and others compare and analyze operating performance from period to period. In the future, the Company expects to incur charges or adjustments similar in nature to those presented below; however, the impact to the Company’s results in a given period may be highly variable and difficult to predict. Our non-GAAP financial measures may not be comparable to similarly titled measures used by, or determined in a manner consistent with, other companies. While the Company considers the non-GAAP measures useful in analyzing its results, they are not intended to replace, or act as a substitute for, any presentation included in the consolidated financial statements prepared in conformity with GAAP.

The Company operates on a global basis, with the majority of its net sales generated outside the United States. Accordingly, fluctuations in foreign currency exchange rates can affect the Company’s results of operations. Therefore, the Company presents certain net sales, operating results and diluted earnings per share information excluding the effect of foreign currency rate fluctuations to provide a framework for assessing the performance of its underlying business outside the United States. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company calculates constant currency information by translating current-period results using prior-year period monthly average foreign currency exchange rates and adjusting for the period-over-period impact of foreign currency cash flow hedging activities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211102005348/en/

Source: The Estée Lauder Companies Inc.

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The following appointments will be effective February 1, 2022:

• Peter Jueptner, currently President, Europe, Middle East, and Africa (EMEA) will succeed Cedric, and will be named President, International,reporting directly to Fabrizio Freda, President and Chief Executive Officer. Peter will be based in New York and will join our Executive Leadership Team Alignment (ELTA), while remaining a member of our Executive Leadership Team (ELT).
• Nadine Graf, currently Vice President, General Manager, EMEA Markets will succeed Peter, and will be named Senior Vice President, General Manager, EMEA, reporting directly to Peter. She will be based in Paris and will join the company’s ELT.

“We are proud of the exceptional depth and quality of internal talent across our organization and ELC remains committed to investing in and growing our talent around the world. As Cedric steps into his well-deserved retirement, we are pleased to elevate Peter and Nadine – two dynamic, internally-trained, and highly experienced leaders into these roles of greater responsibility,” said Fabrizio Freda. “Peter and Nadine each possess extensive first-hand leadership experiences in our regions and affiliates and deep global expertise across all aspects of prestige beauty, making them uniquely qualified to lead our winning International and EMEA businesses, respectively.”

Please find further information about Peter’s and Nadine’s respective appointments below.

Peter Jueptner Appointed President, International

Peter Jueptner

A seasoned and visionary global leader who, throughout his career, has designed and implemented breakthrough winning business models, supported the growth and development of talent, and promoted a team culture of agility and transformation, Peter is uniquely qualified to lead ELC’s winning international business.

As President, International, Peter will oversee the company’s global network of Region Presidents and Affiliate General Managers spanning over 35 affiliates doing business in 150+ countries and territories across our international footprint. In this capacity, Peter will steer the strategic growth of our international organization, overseeing innovation pipelines and strategic third-party relationships with key global retailers and commercial partners to drive our business across established and emerging markets. He will also collaborate closely with our Group and Brand Presidents and Function leaders to integrate global marketing strategies in the international markets.

As President, EMEA since 2016, Peter has leveraged his deep brand, regional, and operational expertise overseeing this important region, where he successfully led the regional strategy, commercial operations and business growth for 17 affiliates, spanning more than 25 countries and covering nearly half of the world’s population. In this role, Peter maintained a consistent focus on ELC’s values, culture, and commitments while driving exceptional performance, and has spearheaded numerous growth opportunities and led critical share gain throughout EMEA’s diverse and complex landscape.

Over the past five years, Peter has led his team in a region-wide transformation approach to further establish EMEA as a multi-faceted, effective, and profitable go-to-market region powered by multiple engines of growth across channels, geographies, and brands. Through this effort, Peter established the region’s Online team and strengthened EMEA’s emerging market portfolio, which is currently the company’s fastest-growing set of emerging markets outside of China. Peter and his team also diversified brand growth across the region, with the majority of regional growth coming from more than 10 of ELC’s powerful brands.

Notably, Peter successfully steered the region through the volatility of the past year and a half, continuing to drive the business amidst the many challenges brought on by the COVID-19 pandemic. He did this while maintaining a clear and caring connection with the EMEA team, supporting them to emerge strongly from the challenges of the past 18 months.

Prior to this, Peter was the Executive Vice President, Strategy, New Business Development and Transformation Initiatives, a role he held since joining ELC in 2009. In this role, he helped oversee the development and execution of the company’s corporate strategy, which delivered record results throughout his tenure, including consistent top-line growth ahead of the global prestige beauty industry. Additionally, he played a key role in continuing to strengthen and expand the company’s powerful portfolio of prestige beauty brands, overseeing a number of acquisitions. As the leader of the company’s strategic initiatives during this time, Peter possesses a unique depth of knowledge at the forefront of industry insights and the biggest opportunities critical to the long-term growth of the company.

“Throughout his impressive career, Peter has continuously demonstrated a people-first approach, and has been strongly committed to driving transparency and innovation that challenge the status quo, while nurturing a culture of diversity, inclusivity, and equity within his teams and across the enterprise,” said Fabrizio Freda. “Peter’s inspiring leadership style, business acumen, and granular knowledge of the landscape at the global, regional, and local levels make him perfectly suited to take on the role of President, International.”

Nadine Graf Appointed Senior Vice President, General Manager, EMEA

Nadine Graf

A well-respected, driven, and innovative leader with a strong passion for winning, Nadine’s deep experience across ELC’s EMEA affiliates makes her extremely well-suited to lead this dynamic region.

As Senior Vice President, General Manager, EMEA, Nadine will oversee the regional strategy, commercial operations, and business growth for 17 affiliates across a diverse and complex consumer landscape spanning more than 25 countries. Working closely with the Affiliate General Managers, Nadine will be responsible for strategically developing the region’s engines of growth across channels, geographies, and brands. In this capacity, she will lead Transformation initiatives with a focus on continuing to nurture and strengthen EMEA’s emerging market portfolio.

In her most recent role as Vice President (VP), General Manager (GM), EMEA Markets, Nadine closely collaborated with Peter and the affiliate GMs, as well as brand and function leaders, to help set the strategic direction for the region, ensuring consistent implementation of the strategy and critical operational initiatives across all markets to strengthen and expand ELC’s geographic presence in the region.

As part of this, Nadine led the region’s Transformation agenda, which included implementation of enterprise-wide Transformation priorities focused on brand marketing and creative, as well as sub-category innovation. She also supported strategic capability-building projects in Retail, Online, and Commercial, and developed talent across all affiliates through transparency and strong best practice-sharing.

In addition to her oversight of the affiliate GMs, Nadine played a key role leading the implementation of ELC’s Virtual Selling strategy in EMEA, one of the most bold and innovative enterprise-wide initiatives that has accelerated during the past two years. She also developed a new category management approach and inspired the organization to embrace the region’s “makeup renaissance.”

Prior to her most recent role, Nadine led Clinique in EMEA, where she orchestrated a critical business turnaround for the brand in the region, overseeing best-in-class product launches, achieving impressive retailer and channel differentiation, and establishing a clear hero franchise strategy for the brand regionally. During her tenure, the brand also achieved double-digit growth in Online and gained market share across the region.

“Nadine is highly respected by her teams and peers for her energetic leadership,” said Peter Jueptner. “She has been instrumental throughout her time at ELC in building and retaining high-performing teams, and leads by example with a locally-relevant, consumer-obsessed mindset. These qualities, as well as her steadfast focus on excellence in execution and a digital-first approach, will serve her well as she takes on this elevated role leading EMEA.”

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DBA Ambassador Danielle Lauder with Davis Factor, Rick Baker and DBA Founder Michele Elyzabeth

Danielle Lauder, actress, entrepreneur and the great-granddaughter of Estée Lauder, will officiate as the Ambassador for this year’s Daytime Beauty Awards. Lauder received The Breakthrough Award at the 2020 Hollywood Beauty Awards.

The 2021 honorees include: Paula Abdul (Outstanding Achievement in Health Sponsored by OmegaXL), Dr. Moncef Slaoui, former Chief Scientist for the U.S. government’s Covid vaccine development effort (Special Tribute Award), Chris Appleton (Outstanding Achievement in Fitness), Gary Archer (Outstanding Achievement in Dentistry), Dr. Stafford Broumand (Outstanding Achievement in Aesthetics), Dr. Andrew Caster (Outstanding Achievement in Medicine), Tracey Cunningham (Outstanding Achievement in Color and Styling), Michaeline DeJoria for John Paul Mitchell Systems (Brand of the Year), Nancy Duitch and Nicole Kidman for Sera Labs (The Breakthrough Award), Cheech Marin (The Zen Award), Gary Trudell for Custom Comfort Mattress (The Sleeping Beauty Award), Randi Shinder and Christie Brinkley for SBLA (Outstanding Achievement in Skincare), Rea Ann Silva for Beautyblender (Tool of the Year), and Erica Skynn for Derm7 (The Innovation Award).

This year’s event will feature a silent auction and cocktails followed by a luncheon and the award ceremony. The Daytime Beauty Awards will require proof of vaccination or proof of negative COVID-19 PCR test for all attendees. No exceptions will be made.

The Daytime Beauty Awards benefits Helen Woodward Animal Center for their efforts 24/7, 365 days a year rescuing animals of all kinds from natural disasters, providing healthcare and forever homes.

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Full Year Net Sales Increased 13% and Diluted EPS Increased to $7.79 from $1.86 In Constant Currency, Net Sales Grew 11% and Adjusted Diluted EPS Increased 54%

Fourth Quarter Net Sales Growth Accelerated to 62%; Up 10% Versus Fiscal 2019 Strong Net Sales Recovery Expected to Continue in Fiscal 2022

The Estée Lauder Companies Inc. (NYSE: EL) today reported net sales of $16.22 billion for its fiscal year ended June 30, 2021, an increase of 13% from $14.29 billion in the prior-year period. Excluding the impact of currency translation, net sales increased 11%. Net sales grew in every region and in most product categories, reflecting the gradual reopening and recovery in brick-and-mortar retail stores in certain markets compared to the prior year when retail locations closed in most markets during the second half of the year as COVID-19 spread globally. Incremental net sales from the Company’s acquisition of Have&Be Co. Ltd. (“Dr. Jart+”) and the increase in its ownership of Deciem Beauty Group (“DECIEM”) contributed 2 percentage points of growth to reported net sales.

The Company reported net earnings of $2.87 billion, compared with net earnings of $0.68 billion last year. Diluted net earnings per common share was $7.79, compared with $1.86 reported in the prior-year period. Excluding restructuring and other charges and adjustments as detailed on page 3, adjusted diluted net earnings per common share increased 57% to $6.45, and rose 54% in constant currency.

Fabrizio Freda, President and CEO, The Estée Lauder Companies

Fabrizio Freda, President and Chief Executive Officer said, “We delivered outstanding results in fiscal 2021, capped by an exceptional fourth quarter and powered by our multiple engines of growth strategy as well as the timeless desirability of prestige beauty. Notably, both sales and profitability meaningfully exceeded fiscal 2019 performance. Amid the challenges of the pandemic, we invested in near- and long-term growth opportunities and managed costs elsewhere with discipline, while making important progress on our social impact commitments and sustainability goals.

Our growth engines of Skin Care, luxury and artisanal Fragrance, Asia/Pacific, travel retail in Asia/ Pacific, and global Online performed exceptionally well. Innovation soared and eight of our brands grew sales double-digits, led by Estée Lauder, La Mer, and Jo Malone London. We amplified the strength of our skin care portfolio as we became majority owners of DECIEM, with its coveted brand The Ordinary. We also invested in an innovation center in Shanghai and a manufacturing facility near Tokyo to enhance our rapid growth in the region.”

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“Our unique Transformation capability is an industry-first approach to enabling the continuous evolution of our business into the future,” said Fabrizio Freda. “Daniel is a dynamic leader with a unique ability to align stakeholders and translate ideas into action. Under Daniel’s leadership, Transformation is accelerating ELC’s business in priority high-growth areas and strengthening our ability to strategically pivot and win with consumers.”

To date, Daniel has led a broad spectrum of strategic enterprise-wide change priorities at the company. He co-designed and operationalized ELC’s integrated Transformation model to accelerate key pillars of change and embed those capabilities within the organization as new, permanent ways of doing business. His contributions include helping to orchestrate the following company initiatives: further establish the Asia-Pacific region as a second home market for the long-term; evolve ELC’s approach to brand innovation and category portfolio management; step-change brand creative capabilities; support digital transformation to deliver best-in-class, High-Touch digital experiences to consumers; and accelerate ELC’s corporate approach to Social Impact and Sustainability.

“Under the leadership of Daniel, Transformation has proven to be a key enabler to help effectively navigate the COVID-19 pandemic,” said Tracey T. Travis. “By tapping into our Transformation capabilities, the company has been able to pivot more quicklytoward growth areas such as China, Online and serving the increasingly conscious consumer while also adapting our business for post-COVID realities.”

Daniel will also continue to oversee ELC’s Category Leadership capability with the goal of maximizing ELC’s portfolio of brands to win in skin care, makeup, fragrance and hair care. Working closely with ELC’s Group Presidents to date, Daniel has facilitated a new process, in support of ELC’s brand-led model, to provide an actionable lens on winning market share as an integrated team in the largest and fastest-growing categories and sub-categories of global prestige beauty.

Daniel joined ELC as Co-Chair, Global Transformation Committee in 2020 from top global management consulting firm Kearney. His initial work for ELC included establishing the company’s Transformation model and building the Global Transformation Team.

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