Can Estee Lauder’s Total Revenue Cross $17 Billion By 2021?

Estee Lauder’s (NYSE: EL) total revenue has grown from $11.82 billion in 2017 to $14.86 billion in 2019, and we expect this growth to continue, driving total revenue to $17.14 billion in 2021. The growth in total revenue has largely been due to strong growth in emerging markets and an increase in selling prices. Skin Care Revenue has seen the highest absolute growth, from $4.55 billion in 2017 to $6.58 billion in 2019, and we expect this segment to bring in $8.11 billion by 2021.
We expect Estee Lauder’s total revenue to rise to around $17.14 billion by 2021, as the company plans on further expanding in the Asia Pacific region.

Estee Lauder has 4 Operating Segments-

To know more about Estee Lauder’s operating segments, and what products they offer, you can view our interactive dashboard, Estee Lauder Revenue: How Does Estee Lauder Make Money?

A] Revenue from the skin care segment to make up 47% of the 2021 revenue estimate, and bring in around $8.11 billion

• Estee Lauder’s skin care segment includes products such as moisturizers, sun screens, and cleansers and face washes.
• Revenue from the skin care segment has grown from $4.55 billion in 2017 to $6.58 billion in 2019, driven by the Estee Lauder and Le Mer brands.
• We expect revenue from this segment to grow to about $8.11 billion by 2021.

B] Revenue from makeup products to grow by about $600 million over the next two years and make up around 38% of total revenue by 2021

• Estee Lauder’s makeup line includes products primarily meant for the lips, eyes, nails, and face.
• Revenue from this segment has been primarily driven by the Estee Lauder and Tom Ford Beauty brands.
• The makeup line has also largely benefited from the acquisitions of Too Faced and Becca in 2016.
• Revenue from this segment has grown from $5.08 billion in 2017 to $5.89 billion in 2019, and we expect it to grow to $6.49 billion in 2021.

C] Revenue from fragrances to bring in around $1.92 billion by 2021, and make up around 11% of total revenue

• The fragrance segment includes products such as perfume sprays, colognes, lotions, powders, creams, and soaps for both men and women.
• Jo Malone London and Tom Ford are Estee Lauder’s prominent fragrance brands, and make up the bulk of this luxury segment.
• We do not expect substantial growth in revenue from this segment by 2021, and expect it to bring in around $1.92 billion.

D] Hair Care to make up around 4% of total revenue, bringing in around $622 million

• The hair care segment includes hair color and styling products, shampoos, conditioners, and finishing sprays priced in the premium range of the market.
• Hair care at Estee Lauder is essentially meant to complement the portfolio of premium beauty care products.
• Revenue from this segment has grown from $542 million in 2017 to $586 million in 2019, and we expect it to rise to around $622 million by 2021.

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