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Transcript of ESTEE LAUDER
Estee Lauder Companies, Inc.
Rosemary Marino, Kerry Nicollet
Sloane Davis, Olivia Chu
Location: Midtown, New York
Ending date of last fiscal year:
June 30, 2013
Corporation's Common Stock
Estee Lauder owns 39% of the total common stock and about 86% of the voting power
Fiscal 2013 Overview (Ended at June 30th)
Net Sales: $10.2 Billion
Operating Income: $1.5 Billion
Total Assets: $7.1 Billion
Growth Revenue: 4.8 %
Total growth in assets: 8.37 %
Current Assets 60.14% 58.47%
Long Term Investments 12.34% 13.39%
Fixed Assets 18.90% 18.68%
Intangibles 2.37% 2.88%
Other Assets 6.24% 6.57%
Current Liabilities 1934.6 2125.8
Total Liabilities 3843.4 3845.5
Stockholders Equity 3286.9 2733.2
Statement of Cash Flows
Operating Activities 1.02 B 856.9M
Investing Activities 461 M 420.7 M
Financing Activities 419.2 M 204 M
Significant Accounting Policies
Cash & Cash equivalentS
Estee Lauder defines their cash equivalents as all highly liquid investments with original maturities of three months or less
(first in first out)
The implications of this change are based upon the evaluation of accounts receivables aging, historical trends and specific exposures.
Stock Market Information
52 week high/low: $75.77 / $57.53
Dividends paid quarterly: $0.20
Earnings Per Share: $2.58
Stockholders' Equity: $3,286.9
Return of Assets
Return on Stockholders Equity
P/E Ratio 25.7 times 26.7 times
Accounts Receivable Turnover 9.12 times 9.69 times
Inventory Turnover Ratio 1.93 times 2.02 times
Current Ratio 2.25 1.81
analysis of Solvency
Location: Paris, France
Markets over 500 brands
Mission: To make beauty universal in a sustainable and responsible way.
MAC, Bobbi Brown, La Mer, Smashbox: high-end consumers, make-up artists
Clinique & Origins: ingredient conscious consumers
Tom Ford, Coach, Michael Kors- high-end fragrance consumers
Business Model: 12 factories in 5 countries (U.S., Belgium, Switzerland, UK, Canada)
Distribution Channels: Upscale department stores, freestanding company stores, specialty retailers, upscale perfumeries, pharmacies, in-flight, duty-free shops, & the internet
Customers & Marketing: Social media, airports, television commercials, magazine ads.
Competition: L’Oreal, Avon Products, Proctor and Gamble
Net Sales: forecasted to grow between 6%-8% Foreign currency translation: expected to negatively impact sales between 1% -2%
The company expects to roll out the major wave of its Strategic Modernization Initiative (SMI) in July 2014 in certain of its locations.
The corporations revenue performance has been increasing over the last few years. In 2013, the revenue for Estee Lauder has reached over 10 million dollars, making it the first time they ever reached double digits
Consumer demand, product innovation, and advertising will have the greatest influence in next year's revenue.
Mission & Vision
Mission: Bringing the Best to Everyone We Touch and Being the Best in Everything We Do
Vision: The global leader in prestige beauty; well-diversified, brand-building powerhouse of unrivaled creativity and innovation
Bumble and bumble
Gassroots Research Labs
News and Events
Estee Lauder company’s share lost 2.3 percent to $57.48
Estee Lauder M.A.C driving sales from Nigeria to Brazil
Web Sales top $500 million in fiscal 2013
Estee Lauder cosmetics sends money toward breast cancer causes (Bobbi Brown, Marc Jacobs)
Lauder granddaughters become billionaires on beauty boom (Aerin and Jane Lauder
Primary Products: Skincare, Makeup, Fragrance, and Hair Care Products.
Estee LAUDER's Challenges
L’Oreal Paris- Revitalift
Maybelline- Baby Lips
L’Oreal Luxe- Urban Decay
The Body Shop
Consolidations, restructurings, bankruptcies and reorganizations in the retail industry
Changes in consumers' wants with regards to beauty
Changes in global or local conditions
As per Estee Lauder's CEO, EL's plans for 2014 are:
Maximize access to consumers through e-commerce, m-commerce, and freestanding stores.
Invest in new marketing strategies - particularly with fragrance products.
Continue to expand our market globally - China, the Middle East, Brazil & Africa.
Develop Luxury Brands
Debt to Equity: 1.17 (2013) 1.41 (2012)
Times Interest Earned: 20.91 (2013) 21.58 (2012)
Cash Coverage: 16.6 (2013) 15.25 (2012)
Gross Margin % Comparison
2013 Estee Lauder ranked #279 on Forbes 500 List