William P. Lauder, President and Chief Executive Officer, said, "Fiscal 2007 closed with sales topping the $7 billion mark on growth of 9% and EPS of $2.16, which was above our initial estimates. This performance is particularly impressive in light of the substantial headwinds from retailer consolidations around the world.
"I am also pleased with the progress we made on our strategic imperatives in fiscal 2007. Specifically, we further optimized our portfolio with the expansion of our fastest-growing brands. We achieved outstanding international growth in both established and emerging markets. In fact, all geographic regions and all product categories saw overall sales growth this year. Equally encouraging is that each of our product categories grew in each region."
"Distribution diversification continued through expansion in alternative channels, such as the Internet, European pharmacies and direct response television. Our profits also benefited from the cost initiatives we have been pursuing and we are encouraged with the successful pilot launch of our Strategic Modernization Initiative (SMI) at Aveda. We plan to build on that success in the coming years as we roll out SMI worldwide."
Mr. Lauder added, "Looking toward fiscal 2008, we are expecting another year of strong top-line growth and increased earnings, even as we continue our substantial investments in strategic imperatives."
"We remain active in the pursuit of new opportunities to build on our global success as illustrated by our recent acquisition of the Ojon hair care and skin care brand. Further expansion of our brands and continued development of the prestige beauty segment in emerging markets is fueling momentum internationally, where we see the largest potential."
Net earnings and diluted net earnings per common share for the most recent year increased substantially compared with the prior year. The increases are due to current year operating income improvements and the special charges and discontinued operations last year.
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The Estée Lauder Companies Inc
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