Weakness For Estee Lauder

1. Decline in Estee Lauder and Clinique Brands

Sales in the quarter rose 7.1 percent to $1.7 billion. Makeup and skin care sales increased in the quarter, but the company said there was weakness in sales of its core brands, and in the domestic market. Estee Lauder and Clinique are their largest brands. Worldwide, sales of each brand climbed by low single digits.

We will increase investment in Clinique in fiscal '07 to facilitate growth in the U.S. and build on the brand's momentum overseas. This year, we will invest in areas with the biggest payoff, skin care and foundation. Clinique will stress its key points of differentiation through smart compelling print ads, national TV commercials and the Internet and other technologies such as text messaging to reach consumers.

We continue to revitalize our two largest brands, and now have a season's worth of experience with national gift dates implemented by major U.S. department stores. We had......

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Title: Estee Lauder
Approximate Word Count: 483
Approximate Pages: 2 (250 words per double-spaced page)

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