Full Description

The Estee Lauder Companies Inc. is a manufacturer and marketer of skin care, makeup, fragrance and hair care products. Its products are sold in over 140 countries and territories under the brand names, which include Estee Lauder, Aramis, Clinique, Origins, MzAzC, Bobbi Brown, La Mer and Aveda. It is also the global licensee for fragrances and/or cosmetics sold under the Tommy Hilfiger, Donna Karan, Michael Kors, and Sean John. During fiscal year ended June 30, 2009 (fiscal 2009), the Company acquired Applied Genetics Incorporated Dermatics (AGI), a manufacturer of cosmetics ingredients. In addition, the Company acquired businesses engaged in the wholesale distribution and retail sale of Aveda products.

The Company sells its prestige products principally through limited distribution channels. These channels, encompassing over 30,000 points of sale, consist primarily of upscale department stores, specialty retailers, upscale perfumeries and pharmacies and prestige salons and spas. In addition, its products are sold in freestanding Company-owned stores and spas, its own and authorized retailer Websites, stores on cruise ships, direct response television (DRTV), in-flight and duty-free shops, and certain fragrances are sold in self-select outlets.

The Company’s range of skin care products addresses various skin care needs for women and men. These products include moisturizers, creams, lotions, cleansers, sun screens and self-tanning products, a number of which are developed for use on particular areas of the body, such as the face or the hands or around the eyes. During fiscal 2009, skin care products accounted for approximately 39% of its net sales. The Company manufactures, markets and sells an array of makeup products, including lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes and powders. It also sells related items, such as compacts, brushes and other makeup tools. During fiscal 2009, makeup products accounted for approximately 39% of its net sales. It offers a variety of fragrance products for women and men. The fragrances are sold in various forms, including eau de parfum sprays and colognes, as well as lotions, powders, creams and soaps that are based on a particular fragrance. During fiscal 2009, fragrance products accounted for approximately 16% of its net sales.

Hair care products are offered mainly in salons and in freestanding retail stores, and include hair color and styling products, shampoos, conditioners and finishing sprays. During fiscal 2009, hair care products accounted for approximately 6% of its net sales. Estee Lauder brand products consist of skin care, makeup and fragrance products. The Company’s Aramis and Designer Fragrances division creates and markets fragrance and skin care products, including the brand names, such as Aramis, Lab Series, Tommy Hilfiger, Donna Karan Cosmetics, Michael Kors, Sean John Fragrances and Missoni. In addition to the foregoing brands, it markets and sells Mustang and Kiton products as a licensee.

Clinique skin care and makeup products are all allergy tested and 100% fragrance free and have been designed to address individual skin types and needs. Clinique also offers lines of fragrances. Prescriptives focuses on delivering flawless-looking skin, for all skins, from lightest to darkest. Signature services include the ultra-personalized artistry of Custom Blend Makeup and Colorprinting. Prescriptives also features a personalized skin care regime for all skins. Origins is positioned as a plant-based line of skin care, makeup and aromatherapy products. Origins sells its products at the Company’s freestanding Origins stores and through stores-within-stores (which are designed to replicate the Origins store environment within a department store), at traditional retail counters and in perfumeries.

MzAzC products comprise a line of color-oriented, professional cosmetics and professional makeup tools targeting makeup artists and fashion-conscious consumers. The products are sold through a limited number of department and specialty stores, and at freestanding MzAzC stores. The Bobbi Brown line includes color cosmetics, skin care, professional makeup brushes and tools, accessories and fragrances. Bobbi Brown products are primarily sold through a limited number of department and specialty stores. La Mer products primarily consist of moisturizing creams, lotions, cleansers, toners and other skin care products. Aveda is a manufacturer and marketer of plant-based hair care, skin care, makeup and fragrance products. Jo Malone includes a fragrance portfolio and luxury products for the bath, body and home. Bumble and bumble is a New York-based hair care and education company with two salons that creates hair care and styling products distributed through other top-tier salons and select prestige retailers.

Laboratoires Darphin is a Paris-based company dedicated to the development, manufacture and marketing of prestige skin care and makeup products, which are distributed primarily through independent pharmacies and specialty stores. BeautyBank is the Company’s entrepreneurial think tank division. Brands developed under the BeautyBank umbrella include American Beauty, Flirt!, Good Skin, grassroots research labs and Daisy Fuentes.

The Company competes with L’Oreal S.A., Shiseido Company, Ltd., LVMH Moet Hennessey Louis Vuitton, Coty, Inc. and The Procter & Gamble Company.