Estée Lauder Companies

The Estée Lauder Companies Inc.

Type	Public
Traded as	NYSE: EL S&P 500 Component
Industry	Cosmetics
Founded	New York City, New York, United States (1946)
Founders	Estée Lauder Joseph Lauder
Headquarters	General Motors Building New York City, New York, United States
Key people	William P. Lauder (Executive Chairman) Fabrizio Freda (President and CEO)
Products	Skin care, Makeup, Fragrance and Haircare
Revenue	US$ 10,968.8 million (2014)[1] US$ 10,181.7 million (2013)[2]
Operating income	US$ 1,827.6 million (2014)[3] US$ 1,526.0 million (2013)[2]
Net income	US$ 1,204.1 million (2014)[1] US$ 1,019.8 million (2013)[2]
Total assets	US$ 7,868.8 million (2014)[4] US$ 7,145.2 million (2013)[2]
Total equity	US$ 3,869.4 million (2014)[4] US$ 3,301.9 million (2013)[2]
Number of employees	44,000
Website	elcompanies.com

The Estée Lauder Companies Inc. (/ˈɛsteɪ ˈlɔːdər/) is an American manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products. The company owns a diverse portfolio of labels, distributed internationally in up-market department stores, and has its headquarters in Midtown Manhattan, New York City.

History

The company began in 1946 when Estée Lauder and her husband Joseph Lauder began producing cosmetics in New York City. They first carried only four products: Cleansing Oil, Skin Lotion, Super Rich All purpose Creme, and Creme Pack. Two years later, in 1948 they established their first department store account with Saks Fifth Avenue in New York.

Over the next 15 years, they expanded the range and continued to sell their products in the United States. In 1960, the company started its first international account in the London department store Harrods. The following year it opened an office in Hong Kong.

In 1964, they started Aramis Inc., designed by Arame Yeranyan, with the fragrance named after Yeremes - a city in Armenia, producing fragrances and grooming products for men. In 1967, Estée Lauder herself was named one of ten Outstanding Women in Business in the United States by business and financial editors. This was followed by a Spirit of Achievement Award from Albert Einstein College of Medicine at Yeshiva University in 1968. In that year, the company expanded again, opening Clinique Laboratories, Inc. Clinique was the first dermatologist guided (Dr. Norman Orentreich), allergy tested, fragrance-free cosmetic brand created by Estée Lauder.

Estée Lauder's Clinique brand became the first women's cosmetic company to introduce a second line for men when, in 1976, they began a separate line called "Skin Supplies for Men", which continues to be sold at Clinique counters worldwide. In 1981, the company's products became available in the Soviet Union.

In February 2004, the company's teen-oriented jane business was sold; in April 2006, the professional-quality Stila brand, which Estée Lauder purchased in 1999, was sold.

The company has had sometimes iconic spokesmodels, sometimes referred to simply as 'faces'. Past 'faces' for Estée Lauder include Karen Graham, Bruce Boxleitner, Shaun Casey, Willow Bay, Paulina Porizkova, Elizabeth Hurley, Carolyn Murphy, Anja Rubik, and actress Gwyneth Paltrow. As of 2008 the main spokesmodel for Estée Lauder was supermodel Hilary Rhoda. In 2010, the company added three more faces to the roster, Chinese model Liu Wen, Puerto Rican model Joan Smalls, and French model Constance Jablonski. Their first campaigns will come out June 2010, and will be shot by Craig McDean.^[5]

As of 2010, Estée Lauder sold its products in department stores across the world and has a chain of freestanding retail outlets. On July 1, 2010, the company acquired Smashbox Beauty Cosmetics, Inc., a brand created in Smashbox Studios in Culver City, California by brothers Dean and Davis Factor (as in Max).^[6]

The large Estée Lauder cosmetics counter at MYER Sydney City

Small-medium-sized pre-2013 style counter at New Zealand retailer Farmers

On October 28, 2011, Aramis and Designer Fragrances, a division of The Estée Lauder Companies Inc., and Tory Burch LLC announced the signing of a multiyear agreement for the exclusive worldwide license of the Tory Burch fragrance business. This partnership marks Tory Burch's first step into the beauty industry. The first Tory Burch fragrance products are expected to be introduced in 2013.^[7]

In 2012, the Company launched AERIN Beauty, a luxury lifestyle beauty and fragrance brand inspired by the signature style of its founder, Aerin Lauder.

In 2014, the Company acquired two insider beauty brands, RODIN olio lusso, a skin care brand renowned for its "Luxury Face Oil," and Le Labo, a fragrance and sensory lifestyle brand. In 2015, the Company acquired Editions de Parfums Frédéric Malle, a fragrance brand, and GLAMGLOW, a Hollywood skin care brand.^[8]

Operations and finances

Finances

As of 30 June 2014 (the end of the fiscal year), The Estée Lauder Companies had sales of more than $10.9 billion. As of 2014 87% of the company stock is owned by the members of the Lauder family.^[9]

Board of Directors

Current members of the Board of Directors of Estée Lauder Companies Inc. are: Charlene Barshefsky, Rose Marie Bravo, Lynn Forester de Rothschild, Fabrizio Freda, Paul J. Fribourg, Wei Sun Christianson, Mellody Hobson, Irvine Hockaday, Aerin Lauder, Jane Lauder, Leonard A. Lauder, William P. Lauder, Richard Parsons, Barry Sternlicht and Richard F. Zannino. ^[10]

Executive management

Leonard A. Lauder is Chairman Emeritus. William P. Lauder is Executive Chairman. Fabrizio Freda is President and Chief Executive Officer.^[11]

Breast Cancer Awareness Campaign (BCA)

In October 1992, the BCA campaign was launched by Evelyn Lauder (Estée's daughter in law) who co-created the "Pink Ribbon" with SELF magazine as a symbol of breast health. Since then, millions of people globally have heard the message about the importance of breast health and early detection can save lives. The Estée Lauder Companies’ annual Breast Cancer Awareness campaign involves all of the 18 brands that make up the Estée Lauder Companies. They collectively represent The Breast Cancer Research Foundation’s first and largest corporate supporter. Estée's daughter-in-law created BCRF's signature pink ribbon.

Over $10 million were raised for the Breast Cancer Research Foundation between 1993 and summer 2003. Another $1 million were raised from their retail partners between July 2002 and summer 2003.^[12]

Brands

The Estée Lauder Companies brands include:^[13]

Controversies

SOPA

Estée Lauder Companies appeared on lists of major companies supporting SOPA, the controversial, but unsuccessful, Congressional anti-piracy bill that was considered overreaching by critics.^[17][18]

Child Labor

In 2001, it was reported that children were discovered working in a factory in Cambridge, New York making products for Origins, one of Estee Lauder's natural products brands. The company immediately moved to terminate the contract with the manufacturer it had been in business with for 5 years, claiming it was totally unaware prior to the initial inspection.

Other

Boycott and Anti-boycott

Since at least February 2001, Estée Lauder and its brands have been the target of a boycott campaign. The boycott has been led by pro-Palestinian activists who have targeted the corporation because of the pro-Israel activities of Ronald Lauder.^[19][20] In June 2003, the San Francisco-based Queers Undermining Israeli Terrorism (QUIT) took up the boycott with their "Estée Slaughter" campaign.^[21] The boycott has generated an anti-boycott campaign by supporters of Israel.^[22]

Animal testing

The Estée Lauder Companies performs non-animal and human volunteer testing to assess product safety and efficacy. The Estée Lauder Companies does not perform animal testing, except where required by law. The Chinese government requires testing on animals for many cosmetic products. ^[23] This causes controversy for smaller brands that are "cruelty free" but were bought out by Estée Lauder. Estée Lauder becomes the parent company of the smaller brand and profits through the smaller brand. Customers are concerned that by continuing to purchase from these previously cruelty free brands that they may contributing to animal testing via parent companies.

References

External links

• Estée Lauder Companies Inc. website
• Estée Lauder Companies Inc. website (Asia)
• Estée Lauder United States website
• Estée Lauder United Kingdom website
• Estée Lauder Germany website
• Estée Lauder Russia website

• • Business data for Estée Lauder Companies: Google Finance
  • Yahoo! Finance
  • Reuters
  • SEC filings
• Lauder Pays $135 million, a Record, for a Klimt Portrait
• Pequeno Frasco Castanho, uma pele renovada e mais bonita
• Estée Lauder travel-retail sales up 23% in Q3 2007/08
• Estée Lauder Perfumes and Fragrances
• BCA campaign official

Coordinates: 40°45′49″N 73°58′22″W / 40.76361°N 73.97278°W / 40.76361; -73.97278