Estee Lauder Stakeholder Summary Report

Estee Lauder Stakeholder Summary Report

Estee Lauder is a successful cosmetic company that has been around since 1946 with its development of a four-part skincare line. Since then, the company has grown, selling products in over 150 counties and territories, with total net sales equaling 14.29 billion in 2020(Who we are 2020). After reviewing Estee Lauder’s 2019 performance highlight section, we can draw several conclusions.

            The report makes use of several different figures portraying the information in easy-to-read graphs. The first graph shows the audience the CAGR Sales or compounded annual growth rate over the last ten years. The Estee Lauder company had an 8% growth rate. The Global Prestige Beauty company had 5% growth rate.  Finally, the S&P 500 Consumer Staples index showed a three percent growth rate. From this chart we can compare the growth rates and understand Estee Lauder had substantial growth, especially compared to other companies (Estee Lauder Companies, ۲۰۱۹ year in review).

            The next graph is a visualization of Diluted Net Earnings Per Common Share. From 2017 to p2018 we see a drop from 3.35 to 2.95. However, by 2019, there is a dramatic increase to 4.82. If we look at the shares that are adjusted for accelerated sales orders and/ or restructuring and other charges and adjustments, we see different numbers than those that are reported. In 2017 the adjusted numbers are 3.47, we then see an increase in 2018 to 4.51 and then again in 2019 to 5.29 (Estee Lauder Companies, ۲۰۱۹ year in review).

            The next graph is a representation of Net Sales by Product Category, in millions, as reported. In 2009 hair care only reported sales of 402, along with fragrance of 1,151, these were the two lowest selling categories. Makeup sales equaled 2,831 and skincare totaled 2,886. In 2019 we see all these numbers increase which is to be expected given Estee Lauders annual growth rate over the last ten years. Hair care had 584 in net sales, and fragrance equaled 1802. Makeup made a huge leap to 5,860 in net sales. Skincare ultimately increased the most to total net sales of 6,551 (Estee Lauder Companies, ۲۰۱۹ year in review). This is not surprising since Estee Lauder is known for skincare and makeup, and built its brand around being a high end skincare company.

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            The next graph is Net Sales by Region and comparing them for the year of 2009 and 2019. APAC, or Asian Pacific, in 2009 accounted for 1299 million in sales, and in 2019 this increased to 3,673. EMEA, or Europe, Middle East, and Africa, had 2,661 million which had the largest increase and the largest sales of the three regions in 2019 to 6,452. Finally, the Americas saw the smallest amount of growth between the three regions. In 2009 net sales were 3,421 and in 2019 net sales equaled 4,741 (Estee Lauder Companies, ۲۰۱۹ year in review).

            Finally, the last graph illustrates Cumulative Ten-Year Total Stockholder Return. It demonstrates stockholder return in June of every year from 2009 to 2019. It also compares the Estee Lauder Companies, S&P 500 Index, and S&P 500 Consumer Staples Index. Each one increased over the last ten years. In 2017 Estee Lauder increases drastically. In June of 2017 stockholder return was just over $500 and by 2019 just under $1,200(Estee Lauder Companies, ۲۰۱۹ year in review).

            Overall, the presentation is professional, and to the point. The report meets its objective. Stakeholders will walk away with the necessary information through the easy-to-read graphs. There is a common color scheme and theme that connects all the graphs and makes the presentation runs smoothly.