Analysis of Reportable Segments
Estée Lauder Cos. Inc. operates in 5 segments: Skin Care; Makeup; Fragrance; Hair Care; and Other.
Segment Profit Margin
Estée Lauder Cos. Inc., profit margin by reportable segment
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | |
|---|---|---|---|---|---|---|
| Skin Care | 14.68% | 27.85% | 32.01% | 28.79% | 29.38% | 27.01% |
| Makeup | -0.49% | 2.85% | -9.14% | -30.00% | 7.47% | 9.75% |
| Fragrance | 17.52% | 18.18% | 11.16% | 1.09% | 7.77% | 9.64% |
| Hair Care | -5.21% | -4.44% | -3.33% | -3.69% | 6.68% | 11.23% |
| Other | 11.11% | 0.00% | -4.44% | 10.00% | 17.39% | 13.43% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Skin Care | Skin Care segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Makeup | Makeup segment profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. | |
| Fragrance | Fragrance segment profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. | |
| Hair Care | Hair Care segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. | |
| Other | Other segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Skin Care
Estée Lauder Cos. Inc.; Skin Care; segment profit margin calculation
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) before charges associated with restructuring and other activities | 1,204) | 2,753) | 3,036) | 2,125) | 1,925) | 1,511) |
| Net sales | 8,202) | 9,886) | 9,484) | 7,382) | 6,551) | 5,595) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 14.68% | 27.85% | 32.01% | 28.79% | 29.38% | 27.01% |
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).
1 2023 Calculation
Segment profit margin = 100 × Operating income (loss) before charges associated with restructuring and other activities ÷ Net sales
= 100 × 1,204 ÷ 8,202 = 14.68%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Skin Care | Skin Care segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Makeup
Estée Lauder Cos. Inc.; Makeup; segment profit margin calculation
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) before charges associated with restructuring and other activities | (22) | 133) | (384) | (1,438) | 438) | 549) |
| Net sales | 4,516) | 4,667) | 4,203) | 4,794) | 5,860) | 5,633) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | -0.49% | 2.85% | -9.14% | -30.00% | 7.47% | 9.75% |
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).
1 2023 Calculation
Segment profit margin = 100 × Operating income (loss) before charges associated with restructuring and other activities ÷ Net sales
= 100 × -22 ÷ 4,516 = -0.49%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Makeup | Makeup segment profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Segment Profit Margin: Fragrance
Estée Lauder Cos. Inc.; Fragrance; segment profit margin calculation
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) before charges associated with restructuring and other activities | 440) | 456) | 215) | 17) | 140) | 176) |
| Net sales | 2,512) | 2,508) | 1,926) | 1,563) | 1,802) | 1,826) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 17.52% | 18.18% | 11.16% | 1.09% | 7.77% | 9.64% |
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).
1 2023 Calculation
Segment profit margin = 100 × Operating income (loss) before charges associated with restructuring and other activities ÷ Net sales
= 100 × 440 ÷ 2,512 = 17.52%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Fragrance | Fragrance segment profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Segment Profit Margin: Hair Care
Estée Lauder Cos. Inc.; Hair Care; segment profit margin calculation
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) before charges associated with restructuring and other activities | (34) | (28) | (19) | (19) | 39) | 64) |
| Net sales | 653) | 631) | 571) | 515) | 584) | 570) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | -5.21% | -4.44% | -3.33% | -3.69% | 6.68% | 11.23% |
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).
1 2023 Calculation
Segment profit margin = 100 × Operating income (loss) before charges associated with restructuring and other activities ÷ Net sales
= 100 × -34 ÷ 653 = -5.21%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Hair Care | Hair Care segment profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Segment Profit Margin: Other
Estée Lauder Cos. Inc.; Other; segment profit margin calculation
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) before charges associated with restructuring and other activities | 6) | —) | (2) | 4) | 12) | 9) |
| Net sales | 54) | 49) | 45) | 40) | 69) | 67) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 11.11% | 0.00% | -4.44% | 10.00% | 17.39% | 13.43% |
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).
1 2023 Calculation
Segment profit margin = 100 × Operating income (loss) before charges associated with restructuring and other activities ÷ Net sales
= 100 × 6 ÷ 54 = 11.11%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Other | Other segment profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Net sales
Estée Lauder Cos. Inc., net sales by reportable segment
US$ in millions
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | |
|---|---|---|---|---|---|---|
| Skin Care | 8,202) | 9,886) | 9,484) | 7,382) | 6,551) | 5,595) |
| Makeup | 4,516) | 4,667) | 4,203) | 4,794) | 5,860) | 5,633) |
| Fragrance | 2,512) | 2,508) | 1,926) | 1,563) | 1,802) | 1,826) |
| Hair Care | 653) | 631) | 571) | 515) | 584) | 570) |
| Other | 54) | 49) | 45) | 40) | 69) | 67) |
| Returns associated with restructuring and other activities | (27) | (4) | (14) | —) | (3) | (8) |
| Total | 15,910) | 17,737) | 16,215) | 14,294) | 14,863) | 13,683) |
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).
Operating income (loss) before charges associated with restructuring and other activities
Estée Lauder Cos. Inc., operating income (loss) before charges associated with restructuring and other activities by reportable segment
US$ in millions
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | Jun 30, 2018 | |
|---|---|---|---|---|---|---|
| Skin Care | 1,204) | 2,753) | 3,036) | 2,125) | 1,925) | 1,511) |
| Makeup | (22) | 133) | (384) | (1,438) | 438) | 549) |
| Fragrance | 440) | 456) | 215) | 17) | 140) | 176) |
| Hair Care | (34) | (28) | (19) | (19) | 39) | 64) |
| Other | 6) | —) | (2) | 4) | 12) | 9) |
| Total | 1,594) | 3,314) | 2,846) | 689) | 2,554) | 2,309) |
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).