The Estée Lauder Companies Inc. is a global leader in the manufacturing, marketing, and sales of prestige skincare, makeup, fragrance, and hair care products. The company's core business model revolves around a portfolio of well-known brands, each distinctly positioned within the market. The company's products are sold in approximately 150 countries and territories through various distribution channels, including its own and authorized retailer websites, third-party online malls, stores in airports, duty-free locations, and brick-and-mortar retail stores. The company believes it is a leader in the beauty industry due to global recognition of its brand names, product innovation, strong geographic market positions, and the high quality of its products and services. The competitive landscape includes large multinational manufacturers and marketers, independent brands, and retailers with their own beauty brands.

• Employees: Approximately 62,000 (as of June 30, 2024)
• Geographic Footprint: Approximately 150 countries and territories
• Headquarters: New York, New York
• Founded: 1946
• Number of freestanding stores: Approximately 1,600 (as of June 30, 2024)
• Revenue: $15.6 billion (FY2024)
• Key Subsidiaries/Brands: Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, TOM FORD, Too Faced, Dr.Jart+, and The Ordinary, among others.

• CEO: Fabrizio Freda
• Executive Chairman: William P. Lauder
• CFO: Tracey T. Travis (expected to be succeeded by Akhil Shrivastava on November 1, 2024)
• Other Key Executives: Roberto Canevari (Executive Vice President – Global Supply Chain), Stéphane de La Faverie (Executive Group President), Carl Haney (Executive Vice President, Global Research Product and Innovation Officer), Jane Hertzmark Hudis (Executive Group President), Peter Jueptner (President, International), Jane Lauder (Executive Vice President, Enterprise Marketing and Chief Data Officer and a Director), Michael O'Hare (Executive Vice President – Global Human Resources), Meridith Webster (Executive Vice President - Global Communications and Public Affairs). Rashida La Lande is expected to become Executive Vice President and General Counsel effective August 19, 2024.

All of the executive officers named above have been employees of the Company for more than five years, with the exception of Roberto Canevari and Meridith Webster. Mr. Canevari joined the Company in 2021. Ms. Webster joined the Company in 2021.

• Annual Revenue: $15.6 billion (FY2024)
• Net Income: $390 million (FY2024)
• Total Assets: $21.7 billion (as of June 30, 2024)
• Employees: Approximately 62,000 (as of June 30, 2024)
• Key Financial Highlights: Revenue decreased by 2% year-over-year. Net income decreased by 61% year-over-year.

The company offers a wide array of products across four main categories:

• Skin Care: Includes moisturizers, serums, cleansers, toners, body care, exfoliators, acne and oil correctors, facial masks, and sun care products.
• Makeup: Includes lipsticks, lip glosses, mascaras, foundations, eyeshadows, and powders, as well as related items like compacts and brushes.
• Fragrance: Includes eau de parfum sprays and colognes, lotions, powders, creams, candles, and soaps based on particular fragrances.
• Hair Care: Includes shampoos, conditioners, styling products, treatments, finishing sprays, and hair color products.
• Other: Includes ancillary products and services that do not fit the definition of skin care, makeup, fragrance, and hair care, and royalty revenue from licensing of the TOM FORD trademark.

The company's operations are organized around product categories. Revenue breakdown by product category for FY2024:

• Skin Care: $7.9 billion
• Makeup: $4.5 billion
• Fragrance: $2.5 billion
• Hair Care: $0.6 billion
• Other: $0.1 billion

The company's strategy focuses on long-term growth by investing in new capabilities, brands, categories, distribution channels, supply chain facilities, technologies, and emerging and more mature geographic markets. Key strategic initiatives include:

• Expanding digital presence and e-commerce capabilities.
• Focusing on omnichannel concepts.
• Leveraging data and analytics.
• Enhancing consumer engagement.
• Driving innovation through product development.
• Integrating social impact and sustainability into business operations.

The company is also undergoing a restructuring program to improve gross margin, lower the cost base, and reduce overhead expenses, while increasing investments in key consumer-facing activities.

The company operates in the highly competitive beauty industry. Key market trends include:

• Increasing consumer interest in responsibly-sourced and environmentally sustainable products.
• Rapidly changing consumer preferences and trends, driven by digital and social media.
• Growth in e-commerce and direct-to-consumer channels.
• Increased focus on personalized consumer experiences.

Major competitors include L'Oreal S.A., Unilever, Procter & Gamble, LVMH Moët Hennessy Louis Vuitton, Chanel S.A., Beiersdorf, Shiseido Company, Ltd., Natura & Co., and Coty Inc., as well as independent brands and retailers with their own beauty brands.

• Competitive Risks: The beauty business is highly competitive, and the company faces challenges from multinational consumer product companies, newer companies, and competition in distribution channels.
• Market Trend Risks: The company's success depends on its ability to anticipate and respond to market trends and changes in consumer preferences, which can change rapidly.
• Customer Concentration Risks: The company is increasingly dependent on key retailers, and adverse impacts on these customers could materially affect the company.
• Economic Risks: A general economic downturn or disruption in business conditions may affect consumer purchases of discretionary items and/or the financial strength of the company's customers.
• Operational Risks: Disruptions in the company's operations, including supply chain, could adversely affect the business.