Net Profit Margin
since 2005
Calculation
Estée Lauder Cos. Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net earnings attributable to The Estée Lauder Companies Inc.1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Jun 30, 2023 | 6.32% | = | 100 | × | 1,006) | ÷ | 15,910) |
| Jun 30, 2022 | 13.47% | = | 100 | × | 2,390) | ÷ | 17,737) |
| Jun 30, 2021 | 17.70% | = | 100 | × | 2,870) | ÷ | 16,215) |
| Jun 30, 2020 | 4.79% | = | 100 | × | 684) | ÷ | 14,294) |
| Jun 30, 2019 | 12.01% | = | 100 | × | 1,785) | ÷ | 14,863) |
| Jun 30, 2018 | 8.10% | = | 100 | × | 1,108) | ÷ | 13,683) |
| Jun 30, 2017 | 10.56% | = | 100 | × | 1,249) | ÷ | 11,824) |
| Jun 30, 2016 | 9.90% | = | 100 | × | 1,115) | ÷ | 11,262) |
| Jun 30, 2015 | 10.10% | = | 100 | × | 1,089) | ÷ | 10,780) |
| Jun 30, 2014 | 10.98% | = | 100 | × | 1,204) | ÷ | 10,969) |
| Jun 30, 2013 | 10.02% | = | 100 | × | 1,020) | ÷ | 10,182) |
| Jun 30, 2012 | 8.82% | = | 100 | × | 857) | ÷ | 9,714) |
| Jun 30, 2011 | 7.95% | = | 100 | × | 701) | ÷ | 8,810) |
| Jun 30, 2010 | 6.14% | = | 100 | × | 478) | ÷ | 7,796) |
| Jun 30, 2009 | 2.98% | = | 100 | × | 218) | ÷ | 7,324) |
| Jun 30, 2008 | 5.99% | = | 100 | × | 474) | ÷ | 7,911) |
| Jun 30, 2007 | 6.38% | = | 100 | × | 449) | ÷ | 7,038) |
| Jun 30, 2006 | 3.78% | = | 100 | × | 244) | ÷ | 6,464) |
| Jun 30, 2005 | 6.41% | = | 100 | × | 406) | ÷ | 6,336) |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
1 US$ in millions
The analysis of net profit margin reveals a period of significant volatility and long-term structural shifts between 2005 and 2023. While net sales generally maintained an upward trajectory for the majority of the period, profitability experienced several distinct cycles of contraction and expansion.
- Initial Volatility and Trough (2005–2009)
- The period began with inconsistent margins, falling from 6.41% in 2005 to a low of 2.98% in 2009. This phase was characterized by fluctuating net earnings despite relatively stable net sales, indicating pressure on bottom-line efficiency during these years.
- Sustainable Margin Expansion (2010–2017)
- A sustained recovery is observed starting in 2010, with margins climbing from 6.14% to a peak of 10.98% by 2014. For the remainder of this period, the net profit margin remained largely stable, oscillating between 9.90% and 10.56%, reflecting improved operational efficiency and scaling capabilities.
- Recent Period of Extreme Fluctuation (2018–2023)
- Recent years exhibit the highest levels of variance in the analyzed period. Following a dip to 8.10% in 2018 and a rise to 12.01% in 2019, the margin contracted sharply to 4.79% in 2020. This was followed by a historic surge to 17.70% in 2021, the highest recorded margin in the data set. However, a subsequent downward trend occurred, with the margin receding to 13.47% in 2022 and returning to 6.32% in 2023.
Correlation analysis indicates that while net sales grew from 6.34 billion USD in 2005 to a peak of 17.74 billion USD in 2022, net earnings did not always grow proportionally. The sharp divergence observed between 2020 and 2021 suggests that external factors or non-operating items significantly influenced profitability, independent of sales volume. The return to a 6.32% margin in 2023 represents a regression to levels nearly identical to those observed in 2005.
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Comparison to Competitors
Estée Lauder Cos. Inc., net profit margin, long-term trends, comparison to competitors
| Estée Lauder Cos. Inc. | Procter & Gamble Co. | |
|---|---|---|
| Jun 30, 2023 | 6.32% | 17.87% |
| Jun 30, 2022 | 13.47% | 18.38% |
| Jun 30, 2021 | 17.70% | 18.79% |
| Jun 30, 2020 | 4.79% | 18.36% |
| Jun 30, 2019 | 12.01% | 5.76% |
| Jun 30, 2018 | 8.10% | 14.59% |
| Jun 30, 2017 | 10.56% | 23.56% |
| Jun 30, 2016 | 9.90% | 16.09% |
| Jun 30, 2015 | 10.10% | 9.22% |
| Jun 30, 2014 | 10.98% | 14.02% |
| Jun 30, 2013 | 10.02% | 13.44% |
| Jun 30, 2012 | 8.82% | 12.85% |
| Jun 30, 2011 | 7.95% | 14.29% |
| Jun 30, 2010 | 6.14% | 16.13% |
| Jun 30, 2009 | 2.98% | 17.00% |
| Jun 30, 2008 | 5.99% | 14.46% |
| Jun 30, 2007 | 6.38% | 13.52% |
| Jun 30, 2006 | 3.78% | 12.73% |
| Jun 30, 2005 | 6.41% | 12.79% |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).
Comparison to Industry (Consumer Staples)
Estée Lauder Cos. Inc., net profit margin, long-term trends, comparison to industry (consumer staples)
| Estée Lauder Cos. Inc. | Consumer Staples | |
|---|---|---|
| Jun 30, 2023 | 6.32% | 5.47% |
| Jun 30, 2022 | 13.47% | 6.11% |
| Jun 30, 2021 | 17.70% | 6.21% |
| Jun 30, 2020 | 4.79% | 6.22% |
| Jun 30, 2019 | 12.01% | 4.62% |
| Jun 30, 2018 | 8.10% | 6.05% |
| Jun 30, 2017 | 10.56% | 5.52% |
| Jun 30, 2016 | 9.90% | 5.88% |
| Jun 30, 2015 | 10.10% | 5.62% |
| Jun 30, 2014 | 10.98% | 6.00% |
| Jun 30, 2013 | 10.02% | 6.75% |
| Jun 30, 2012 | 8.82% | 6.65% |
| Jun 30, 2011 | 7.95% | 6.99% |
| Jun 30, 2010 | 6.14% | 7.59% |
| Jun 30, 2009 | 2.98% | 6.93% |
| Jun 30, 2008 | 5.99% | 6.75% |
| Jun 30, 2007 | 6.38% | 6.11% |
| Jun 30, 2006 | 3.78% | 6.35% |
| Jun 30, 2005 | 6.41% | 6.29% |
Based on: 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30), 10-K (reporting date: 2006-06-30), 10-K (reporting date: 2005-06-30).