Estée Lauder and Bogart have both just released their latest sales figures. The cosmetics group announced a decrease in its sales in the last quarter of 2022, while the family-owned perfume specialist showed a clear growth last year.
Despite inflation, restrictions on the Chinese continent and the war in Ukraine, the beauty world remains little affected by the crisis. But if the results are mainly on the rise for this sector, some groups are in more difficulty.
This is the case for the French cosmetics chain Estée Lauder, which yesterday announced net sales of $4.62 billion, for its second quarter ended December 31, 2022, down 17% from $5.54 billion in the previous period.
Organic net sales were down 11 percent. This decline was due in part to covid 19 developments in China and restrictions in the territory, which heavily impacted the last quarter. As a result, product shipments were significantly reduced and traffic in stores and the rest of China was limited. The difficulties in the Middle Kingdom were nevertheless slightly offset by strong overall organic net sales growth in developed markets.
For 2023, the group expects net sales to decline in the range of 5% to 7% as well as a decline in adjusted annual earnings per share of between 27% and 29%.
Estée Lauder down, Bogart up
Bogart, an independent company with nine perfume and cosmetics brands (Bogart Parfums, Carven, Chevignon, April, Ted Lapidus…), reported an increase in sales in 2022. Its sales rose by 19.2% to 293 million euros last year.
In the fourth quarter of 2022, its growth was 12.4%, with sales of 94.6 million euros. On a like-for-like basis, growth was 7.6%.
On the other hand, the specialist recorded a decline in the profitability of its network of April stores in France, which will have an impact on the results of the 2022 fiscal year: “Reorganization measures have been taken rapidly on this network and are currently under discussion with the staff representative organizations“, Bogart specifies. The group recently announced plans to close 17 of its 67 April stores in France.
Regarding the beginning of the 2023 fiscal year, the company remains confident that its perfume and cosmetics brands will continue to grow. At the same time, it remains attentive to its fixed costs, to limit the effects of inflation in its store network.
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