Introduction
The well-known cosmetics company Estée Lauder has released its 2020 Year in Review, which gives an overview of its financial success in 2020. Estée Lauder Companies is a global leader in prestige beauty, owning a diverse portfolio of iconic brands such as MAC, Clinique, and Estée Lauder (Estée Lauder Companies, 2020a). An extensive document, the report thoroughly reviews the brand’s financial performance. The report covering the year 2020 is particularly noteworthy as it was released amidst the COVID-19 pandemic, which profoundly impacted the beauty industry and the broader global economy. The purpose of the report is to give stakeholders a candid, honest picture of how the brand is doing in terms of achieving its fiscal objectives. Thus, it is essential to explore how the report contextualizes Estée Lauder’s financial performance, its use of technical terms and figures, and its presentation.
Content
Estée Lauder uses data in various ways to give readers a thorough review of the company’s accomplishments and financial performance for the entire fiscal year. In order to portray the company’s financial stability and profitability, the report includes a variety of financial metrics, including five-year compound annual growth rate (CAGR) sales, net sales by product category, and a comparison of a five-year cumulative total return (Estée Lauder Companies, 2020b). The information is presented as charts and graphs, which make it simple to read and comprehend. The report emphasizes the company’s financial accomplishments using precise language and data.
By using relevant contexts, technical terms, and figures throughout the document, the report enables investors to make informed decisions about investing in Estée Lauder’s stock and assess the company’s progress. For instance, a chart in the report illustrates how Estée Lauder surpassed its competitors by comparing its net sales growth rate to the industry average (Estée Lauder Companies, 2020b). To give readers a greater understanding of the data, the report also uses specific settings, such as the option only to show products of a specific category.
Another noteworthy example lies in the report’s coverage of the COVID-19 pandemic and its impact. This event ultimately resulted in supply chain interruptions, retail shop closures, and decreased customer demand, substantially affecting the company’s operations (Ma & Kwon, 2021). However, Estée Lauder’s net sales declined by only 4% in 2020 (Estée Lauder Companies, 2020b). This showcases the company’s resilience and ability to navigate a challenging market environment.
Finally, one of the main strengths of the report is the use of contextual information to provide readers with a clear understanding of ELC’s performance in the context of the broader market. For example, in the five-year CAGR sales chart, the report compares ELC’s financial performance against industry benchmarks (Estée Lauder Companies, 2020b). It highlights how the company has outperformed its peers. This contextual information is essential for investors seeking to make informed decisions about investing in ELC’s stock.
Presentation
Readers will find Estée Lauder’s “Year in Review 2020” report to have a generally polished and elegant appearance. The navy blue and gold combination used throughout the report creates an air of sophistication and reliability (Okat & Solak, 2020). The report is visually exciting and simpler to read and digest because of the inclusion of high-quality photographs and visuals that break up the text. The report’s layout is likewise well-organized, with specific headers and subheadings that make browsing the content more accessible.
Furthermore, the design of the report enhances its goals and content. For instance, the report has several understandable charts and graphs that show the financial data visually. The report also includes infographics and pictures to illustrate the company’s financial progress, which aids readers in understanding and appreciating the company’s dedication to meeting the shareholders’ expectations. Achieving its goal, the report effectively informs its stakeholders about the company’s financial performance. The COVID-19 pandemic’s effects on the company’s operations are discussed. The company’s financial statistics, including net sales, earnings per share, and operating income, are presented in detail. Investors are given a complete picture of the company’s operations by the inclusion of a breakdown of the company’s performance by geographical area and product category.
Conclusion
In conclusion, the Estée Lauder “2020 Year in Review” report does a more than adequate job of accomplishing its goals. The report uses data thoroughly and contextually to offer insights into the business’s financial performance. Furthermore, the report clearly and transparently illustrates the company’s accomplishments and ambitions using specific terminology and numbers. It gives a thorough summary of how the brand is doing concerning its financial objectives, and it is evident that the company has achieved substantial advancements. The report is also open and truthful, giving stakeholders a comprehensive picture of the brand’s performance during the previous year. The above evidence leads to the conclusion that Estée Lauder’s “2020 Year in Review” is a remarkable report that effectively highlights the company’s successes.
References
Estée Lauder Companies. (2020). Form 10-K. Web.
Estée Lauder Companies. (2020). 2020 Year in Review. Web.
Ma, Y., & Kwon, K. T. (2021). Changes in purchasing patterns in the beauty market due to Post–COVID‐19: Literature review. Journal of Cosmetic Dermatology, 20(10), 3074–3079. Web.
Okat, Ö., & Solak, B. B. (2020). Visuality in corporate communication. Advances in Multimedia and Interactive Technologies Book Series, 37–59. Web.