Estee Lauder's travel retail segment, specifically airport stores, major push behind company's 46% increase in Q1 net income, CEO says; company's travel retail revenue growing more than 40% while global retail traffic growing about 6%
Michelle Rivera
NEW YORK
,
November 4, 2011
(Associated Press)
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Cosmetics maker Estee Lauder said Thursday that its fiscal first-quarter net income rose 46 percent, helped by strong sales globally, particularly in its travel retail segment, which includes airport stores, and emerging markets.
CEO Fabrizio Freda talked with analysts during a conference call about Estee Lauder's travel retail segment.
QUESTION: How has travel retail has looked to date?
FREDA: Travel retail (revenue) has been growing more than 40 percent. And the quarter specifically was 35 percent. Now, this is coming from travel retail traffic around the world growing about 6 percent. And we're growing much faster than that, because of building market share and increasing conversion of travelers into shoppers. ...
The majority of the increase comes from China consumers, so all our investment and success in China also has the effect of pushing our travel retail globally. Having said this, we remain cautious on the volatility of China retail.
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