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2
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· Posted on
February 21, 2024

The beauty industry gets knocked down...but it gets up again. Take Estée Lauder's word for it

Like a lotta businesses in 2020, Estée Lauder had a rocky road. And not the marshmallow and choccie kind.

What's the key learning?

  • After a rocky 2020, Estée Lauder made nearly US$4.4 billion in revenue for the 3 months to September 30
  • The global beauty industry has been consistently resilient - even in the toughest of times
  • The beauty industry lost around US$175 billion last year, but Estée Lauder's earnings show industry sales are back on track.

Background: Estée Lauder is a makeup, skincare and fragrance company that launched in New York all the way back in 1946. It quickly expanded to house tonnes of brands we know and love (i.e. Tommy Hilfiger, MAC, La Mer...the list goes on).

What happened: Like a lotta businesses in 2020, Estée Lauder had a rocky road. And not the marshmallow and choccie kind. People stayed indoors, so they stopped buying makeup 'cos ya know...what's the point.

What else: But the company's first-quarter earnings for 2022 show beauty is back. Estée Lauder made nearly US$4.4 billion in revenue for the 3 months to September 30, up from US$3.5 billion the year before.

So what's the key learning?

💡The beauty industry may get knocked down...but it always picks itself back up.

💡In fact, the global beauty industry has been consistently resilient - even in the toughest of times.

  • 2001 recession - lipstick sales actually increased.
  • 2008 Global Financial Crisis - spending fell slightly...but fully bounced back by 2010.

💡While 2020 was a bit of a different kind of recession, but tough times never last for this industry. The beauty industry lost around US$175 billion last year, but Estée Lauder's earnings show industry sales are back on track.

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