SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
______________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) :
May 9, 2003
The Estee Lauder Companies Inc.
(Exact name of registrant as specified in its charter)
Delaware 11-2408943
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
Commission File Number: 1-14064
767 Fifth Avenue, New York, New York 10153
(Address of principal executive offices) (Zip Code)
212-572-4200
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Item 9. Regulation FD Disclosure
The Estee Lauder Companies Inc. issued a press release reporting that the
Company entered into a license agreement for fragrances and beauty products
under the "Michael Kors" trademarks with Michael Kors L.L.C. and acquired the
related business previously conducted by American Designer Fragrances, a
division of LVMH. A copy of that press release is attached hereto as Exhibit
99.1 and is incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
THE ESTEE LAUDER COMPANIES INC.
Date: May 9, 2003 By: /s/Richard W. Kunes
------------------------
Richard W. Kunes
Senior Vice President
and Chief Financial Officer
(Principal Financial and
Accounting Officer)
The
Estee NEWS
Lauder Contacts:
Companies Inc.
Media Relations:
Sally Susman
(212) 572-4430
767 Fifth Avenue
New York, NY 10153 Investor Relations:
Dennis D'Andrea
(212) 572-4384
Michael Kors, L.L.C.:
Anne Waterman
(212) 894-9265
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FOR IMMEDIATE RELEASE
THE ESTEE LAUDER COMPANIES TO MARKET MICHAEL KORS FRAGRANCES
Luxury Brand Adds Depth, Dimension to Designer Fragrances Division.
May 9, 2003 (NEW YORK) - The Estee Lauder Companies Inc. (NYSE:EL) announced
today that it has acquired Michael Kors Fragrances, the fragrance and beauty
license previously held by American Designer Fragrances, a division of LVMH.
Terms of the deal were not disclosed. Michael Kors Fragrances will become part
of The Estee Lauder Companies' Aramis and Designer Fragrances Division, which is
led by Patrick Bousquet-Chavanne, Group President, and John Karp, President.
The Michael Kors fragrance business was launched in 2000 with his signature FiFi
award-winning women's fragrance, MICHAEL. MICHAEL for Men was launched in 2001
and received awards from the Fragrance Foundation and Cosmetic Executive Women.
A new women's fragrance, KORS Michael Kors, was launched in February 2003. All
fragrances, as well as ancillary bath and body products, are currently sold in
department stores, specialty stores, at freestanding Michael Kors boutiques and
over the Internet.
"We are very pleased about this new alliance with Michael Kors L.L.C.," said
Patrick Bousquet-Chavanne. "We believe that the brand has significant growth
potential, and we look forward to a long and productive relationship with
Michael and his partners, Lawrence Stroll and Silas Chou, all of whom have
tremendous track records. I know we can count on their energy and talent to make
this collaboration a great success. The team at American Designer Fragrances has
done a very good job developing the Michael Kors concept, and the Michael Kors
fragrances have been well-received in the marketplace."
Michael Kors stated, "I am so thrilled to become part of The Estee Lauder
Companies. They are truly the bell-weather in the beauty business... it's what
everyone else aspires to become. I know that with their expertise, my fragrance
business is in the best of hands."
"Silas and I approached The Estee Lauder Companies about partnering with us to
take Michael's fragrance business to the next level, and together we are mapping
out a long-term strategy to strengthen the brand and remain true to Michael's
vision," said Lawrence Stroll, Co-Chairman of Michael Kors. "We were the
Company's first designer licensor with Tommy Hilfiger, and we look forward to
new opportunities ahead with the Michael Kors business."
"Michael is a leader in the fashion world, and the Michael Kors fragrances
further strengthen our position in the designer fragrance arena," said John
Karp. "This will be a powerful complement to our other designer licenses - Donna
Karan, Tommy Hilfiger and Kate Spade - each of which represents a unique and
highly successful business."
Michael Kors is one of the leading American designers for luxury sportswear. His
range of products through his Collection and KORS Michael Kors labels includes
women's and men's ready to wear; women's shoes, handbags and eyewear, as well as
a full line of fragrance and beauty products for both men and women. His
products are available at leading department and specialty stores throughout the
world, as well as freestanding retail locations in New York and Tokyo.
The Estee Lauder Companies is one of the world's leading manufacturers and
marketers of quality skin care, makeup, fragrance and hair care products. The
Company's products are sold in more than 130 countries and territories under
well-recognized brand names, including Estee Lauder, Aramis, Clinique,
Prescriptives, Origins, M.A.C, La Mer, Bobbi Brown, Tommy Hilfiger, jane, Donna
Karan, Aveda, Stila, Jo Malone, Bumble and bumble, kate spade beauty and
Darphin.
The forward-looking statements in this press release, including those containing
words like "will," "believe," and those in the various remarks involve risks and
uncertainties. Factors that could cause actual results to differ materially from
those forward-looking statements include the following:
(i) increased competitive activity from companies in the skin care,
makeup, fragrance and hair care businesses, some of which have
greater resources than the Company does;
(ii) the Company's ability to develop, produce and market new products on
which future operating results may depend;
(iii) consolidations, restructurings, bankruptcies and reorganizations in
the retail industry causing a decrease in the number of stores that
sell the Company's products, an increase in the ownership
concentration within the retail industry, ownership of retailers by
the Company's competitors and ownership of competitors by the
Company's customers that are retailers;
(iv) shifts in the preferences of consumers as to where and how they
shop for the types of products and services the Company sells;
(v) social, political and economic risks to the Company's foreign or
domestic manufacturing, distribution and retail operations, including
changes in foreign investment and trade policies and regulations of
the host countries and of the United States;
(vi) changes in the laws, regulations and policies, including changes in
accounting standards, tax laws and regulations, trade rules and
customs regulations, and the outcome and expense of legal or
regulatory proceedings, that affect, or will affect, the Company's
business;
(vii) foreign currency fluctuations affecting the Company's results of
operations and the value of its foreign assets, the relative prices
at which the Company and its foreign competitors sell products in the
same markets and the Company's operating and manufacturing costs
outside of the United States;
(viii)changes in global or local economic or other conditions that could
affect consumer purchasing, the willingness of people to travel,
the financial strength of our customers, the cost and availability of
capital, which the Company may need for new equipment, facilities or
acquisitions, and the assumptions underlying our critical accounting
estimates;
(ix) shipment delays, depletion of inventory and increased production
costs resulting from disruptions of operations at any of the
facilities which, due to consolidations in the Company's
manufacturing operations, now manufacture nearly all of the Company's
supply of a particular type of product (i.e., focus factories);
(x) real estate rates and availability, which may affect the Company's
ability to increase the number of retail locations at which the
Company's products are sold and the costs associated with its
executive offices;
(xi) changes in product mix to products which are less profitable;
(xii) the Company's ability to acquire or develop e-commerce capabilities,
and other new information and distribution technologies, on a timely
basis and within the Company's cost estimates;
(xiii)the Company's ability to capitalize on opportunities for improved
efficiency, such as globalization, and to integrate acquired
businesses and realize value therefrom; and
(xiv) consequences attributable to the events that are currently taking
place in Iraq and that took place in New York City and Washington,
D.C. on September 11, 2001, including further attacks, retaliation
and the threat of further attacks or retaliation.
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