What: The US makeup conglomerate saw some growth despite pandemic supply disruption but plans cautiously for 2023 as inflation looms.

Why it is important: Record inflation, supply chain disruptions, the strengthening US dollar, risk of a slowdown in many global markets, and the headwind from recent Covid shutdowns in Hainan all factor into the makeup company’s predictions of growth slowing 3-5% year-over-year in 2023.

Net sales for the group rose 9% to 17.74 billion USD for the year ended 30 June 2022, driven by the Americas and Europe, the Middle East and Africa. However, the sober outlook for 2023 could be linked to the 23% drop in net sales in the Asia Pacific region. Overall, net sales slumped 10% year-on-year to 3.56 billion USD in the fourth quarter.

The company ties the reduced capacity caused by the pandemic’s restriction as a major contribution to the declining skincare sales. Fragrance performed well as did makeup. Some attribute increased sales of makeup and beauty products as a result of recession-related consumer behaviour increasing a desire to feel confident in uncertain times.

Reports are that Estée Lauder continues plans to buy Tom Ford in a 3 billion+ USD deal.

Estée Lauder Companies foreshadow slowdown