Medical aesthetic products. Lauder’s lipstick effect MIA as sales plummet 17 percent in Q2 2023

THE WHAT? The Estee Lauder Companies has reported its results for the second quarter of fiscal 2023. Sales dropped 17 percent on the prior-year period from US5.54 billion to US$4.62 billion. The US prestige beauty giant has adjusted its full-year guidance accordingly, with sales now expected to decrease between 5 and 7 percent.

THE DETAILS In terms of regional performance, all regions saw sales drop, with The Americas dipping 5 percent, Europe, the Middle East & Africa falling 22 percent and Asia/Pacific diving 17 percent. By sector, it looks like skin care’s dominance has rather unceremoniously come to an end with sales down 20 percent and 3 percent was shaved off make-up sales. Fragrance, in contrast gained 12 percent and hair care saw a 4 percent rise.

THE WHY? Lauder’s results are a stark contrast to those reported by LVMH just days ago; it looks like Lauder has failed to learn the lessons of the pandemic and continues to be over-reliant on the Chinese and travel retail markets. Fabrizio Freda, President and Chief Executive Officer said, “We delivered on our expectations for the second quarter of fiscal 2023, despite the incremental pressure of COVID-19 in China in December. Many developed and emerging markets around the world outperformed to realize our organic sales growth outlook and, given disciplined expense management and moderation of the stronger U.S. dollar, we exceeded our adjusted diluted EPS outlook. Fragrance excelled globally, while Makeup prospered in a great number of markets, as our brands are realizing the promise of the category’s renaissance as usage occasions resume.

Medical aesthetic products refer to a category of products used in the field of medical aesthetics, which combines medical practices with cosmetic procedures to improve the appearance of individuals. These products are typically used under the supervision of trained medical professionals such as dermatologists, plastic surgeons, or specialized nurses. They are distinct from over-the-counter cosmetics in that they often contain higher concentrations of active ingredients or require medical expertise for their application.

Examples of medical aesthetic products include:

• Dermal Fillers: Injectable substances used to restore volume, fill wrinkles, and enhance facial contours. These may include hyaluronic acid fillers like Juvederm or collagen-stimulating fillers like Sculptra.

• Botulinum Toxin (Botox): Injectable neurotoxins used to temporarily paralyze facial muscles, reducing the appearance of wrinkles and fine lines caused by facial expressions.

• Chemical Peels: Solutions containing chemical exfoliants like glycolic acid, salicylic acid, or trichloroacetic acid, used to improve skin texture, treat acne scars, and reduce hyperpigmentation.

• Laser and Light Devices: Equipment used for various skin treatments, including hair removal, skin resurfacing, tattoo removal, and treatment of vascular and pigmented lesions.

• Prescription Skincare Products: Formulations containing active ingredients such as retinoids (e.g., tretinoin), hydroquinone, or prescription-strength antioxidants, designed to address specific dermatological concerns under medical supervision.

• Microneedling Devices: Devices that create tiny punctures in the skin to stimulate collagen production and improve skin texture and elasticity.

• Cosmeceuticals: High-quality skincare products that bridge the gap between cosmetics and pharmaceuticals, often containing biologically active ingredients with proven efficacy.