Estée Lauder Companies

The Estée Lauder Companies Inc.
Public
Traded as NYSE: EL
S&P 500 Component
Industry Cosmetics
Founded New York City, New York, USA (1946)
Founder Estée Lauder
Joseph Lauder
Headquarters General Motors Building
New York City, New York, USA
Key people
 William P. Lauder
(Executive Chairman)
Fabrizio Freda
(President and CEO)
Products Skin care, Makeup, Fragrance and Haircare
Revenue
  • Increase US$ 10,968.8 million (2014) [1]
  • Increase US$ 10,181.7 million (2013) [2]
  • Increase US$ 1,827.6 million (2014) [3]
  • Increase US$ 1,526.0 million (2013) [2]
  • Increase US$ 1,204.1 million (2014)[4]
  • Increase US$ 1,019.8 million (2013) [2]
Total assets
  • Increase US$ 7,868.8 million (2014) [5]
  • Increase US$ 7,145.2 million (2013) [2]
Total equity
  • Increase US$ 3,869.4 million (2014) [5]
  • Increase US$ 3,301.9 million (2013) [2]
Number of employees
 42,400
Website www.elcompanies.com

The Estée Lauder Companies Inc. /ˈɛsteɪ ˈlɔːdər/ is an American manufacturer and marketer of high-end skincare, makeup, fragrance and hair care products. The company has its headquarters in Midtown Manhattan, New York City.[6]

History

An outdoor poster appears at the Central, Hong Kong

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: Super-Rich All Purpose Creme, Creme Pack, Cleansing Oil, and Skin Lotion. Two years later, 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.[7]

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).[8]

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.[9]

The large Estée Lauder cosmetics counter at MYER Sydney City

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 Lauders family. [10]

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, Mellody Hobson, Irvine Hockaday, Aerin Lauder, Jane Lauder, Leonard Lauder, William P. Lauder, Richard Parsons, Barry Sternlicht and Richard F. Zannino. [11]

Executive Management

Leonard A. Lauder is Chairman Emeritus of The Estée Lauder Companies. William P. Lauder is Chairman of the Board and Executive Chairman. Fabrizio Freda is President and Chief Executive Officer. [12]

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.[13]

Brands

The Estée Lauder Companies brands include: [14]

Controversies

Boycott

QUIT activists outside Macy's San Francisco store on February 14, 2004. Banner says, "Killer Products from Estée Slaughter."

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.[18][19] In June 2003, the San Francisco-based Queers Undermining Israeli Terrorism (QUIT) took up the boycott with their "Estée Slaughter" campaign.[20] The boycott has generated an anti-boycott campaign by supporters of Israel.[21]

Animal Testing

The Estée Lauder Companies Inc. writes on its website that the company conducts animal testing on products and ingredients when required by law.[22] The company is listed on PETA's companies that “either test on animals or pay a laboratory to conduct tests on animals” list.[23]

SOPA

Estee Lauder Companies appeared on lists of major companies supporting SOPA, the controversial, but unsuccessful, Congressional anti-piracy bill that was considered overreaching by critics.[24][25]

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

References

  1. ↑ http://investors.elcompanies.com/phoenix.zhtml?c=109458&p=IROL-secToc&TOC=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9vdXRsaW5lLnhtbD9yZXBvPXRlbmsmaXBhZ2U9OTc2NzU5MCZzdWJzaWQ9NTc%3d&ListAll=1&sXBRL=1
  2. ↑ 2.0 2.1 2.2 2.3 2.4 "ESTEE LAUDER COMPANIES INC 2013 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. August 23, 2013.
  3. ↑ http://www.sec.gov/Archives/edgar/data/1001250/000110465914062259/0001104659-14-062259-index.htm
  4. ↑ http://investors.elcompanies.com/phoenix.zhtml?c=109458&p=IROL-secToc&TOC=aHR0cDovL2FwaS50ZW5rd2l6YXJkLmNvbS9vdXRsaW5lLnhtbD9yZXBvPXRlbmsmaXBhZ2U9OTc2NzU5MCZzdWJzaWQ9NTc%3d&ListAll=1&sXBRL=1
  5. ↑ 5.0 5.1 "ESTEE LAUDER COMPANIES INC 2014 Q3 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. May 2, 2014.
  6. ↑ "Corporate Information."
  7. ↑ "The New Faces of Beauty: Of the Minute". models.com. Retrieved 2010-04-16.
  8. ↑ ESTÉE LAUDER COMPANIES - Investor Relations - News Release
  9. ↑ ESTÉE LAUDER COMPANIES - Investor Relations - News Release
  10. ↑ "The Estée Lauder Companies Inc. Form 10-K". SEC. SEC. 2015-04-21. Retrieved 2015-04-21.
  11. ↑ http://investing.businessweek.com/research/stocks/people/board.asp?ticker=EL
  12. ↑ http://www.elcompanies.com/Pages/Our-Leaders.aspx
  13. ↑ "Summer 2003 BCRF newsletter: Estée Lauder Companies Update". Web. April 4, 2005. Archived from the original on April 4, 2005. Retrieved May 22, 2011.
  14. ↑ http://www.elcompanies.com/pages/our-brands.aspx
  15. ↑ http://www.elcompanies.com/Pages/PressReleaseStory.aspx?ReleaseId=1818
  16. ↑ http://www.elcompanies.com/Pages/PressReleaseStory.aspx?ReleaseId=1817
  17. ↑ KamCity Estee Lauder Acquires Smashbox Cosmetics
  18. ↑ "Boycott Israel Campaign". Retrieved August 6, 2006.
  19. ↑ "American Muslims for Jerusalem have called for a boycott of Estee Lauder products". Snopes. Retrieved August 6, 2006.
  20. ↑ "Queers Undermining Israeli Terrorism". Retrieved August 6, 2006.
  21. ↑ "Armchair Activist: Buy Estee Lauder Products". May 11, 2001. Archived from the original on June 7, 2002. Retrieved August 6, 2006.
  22. ↑ Customer Service FAQS
  23. ↑ Estée Lauder || Skin Deep® Cosmetics Database | Environmental Working Group
  24. ↑ "All the Companies Supporting SOPA, the Awful Internet Censorship Law—and How to Contact Them".
  25. ↑ "List of Supporters: H.R. 3261, the Stop Online Piracy Act" (PDF).

External links

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