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The Estee Lauder Company Inc.

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The Estèe Lauder Companies Inc. is an American manufacturer and marketer of prestige makeup, fragrance, hair care products, and skincare. The company operates in the Americas, Europe, Africa, Asia Pacific, and the Middle East. The headquarters are located in New York City, New York and have about 44,000 people as of June 30, 2015 (Marketline, 2016). Mrs. Estee Lauder and her husband, Joseph Lauder, founded the company in 1946. The brand was launched with the following four products: super rich all-purpose cream, crème pack, cleansing oil, and skin lotion. As time went on, the company acquired many other makeup and skin care brands such as MAC, Bobbi Brown, Jane and Aveda, and Rodan & Fields. Within two years, Saks Fifth Avenue in New York became the first Estee Lauder counter in the world and the cosmetics industry changed forever (Hoovers, 2016). The Estee Lauder Companies’ strong and sustained growth has helped drive their momentum heavily in the beauty industry. It is a dynamic industry with many competitions but also benefits from demographic trends. According to Hoovers (2016) they sell products in 150+ countries and territories with 25+ prestige brands. The company’s total net sales as of 2016 are $11.26 billion (Statista 2016). During the fiscal year, Estee Lauder increased their dividend rate by 25 percent, repurchased $890 million of their outstanding shares, and returned over 100 percent of free cash flow to stockholders, according to Statista (2016). Many

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