NEW YORK, Oct. 29 /PRNewswire/ -- The Estee Lauder Companies Inc.
(NYSE: EL) today reported net sales of $872.8 million for the fiscal first
quarter ended September 30, 1996, a 5% increase from $833.1 million in the
prior-year quarter.  Excluding the impact of foreign currency translation, net
sales would have increased 7% during the quarter.
    The Company reported net earnings of $52.7 million for the quarter, or
$.39 net earnings per common share, up 14% from $46.4 million for the
comparable period last year.
    Leonard A. Lauder, Chairman and Chief Executive Officer, said, "We are
pleased to begin the fiscal year with another quarter of record sales for our
Company.  Our strong financial performance reflected continued improvement in
operating margin during the quarter, which was primarily driven by continued
cost savings associated with global sourcing and manufacturing initiatives.
    "With our solid start in the first quarter," added Mr. Lauder, "and our
plans for new product launches, geographic expansion, and continued
operational efficiencies, we are well-positioned to meet our financial
objectives for the fiscal year."
    In the Americas region, the Company reported a 4% increase in net sales,
to $539.2 million, and an increase in operating profitability versus the
prior-year quarter.  Gains were attributable to the sales from new product
launches, growth from existing products and the incremental contribution from
the Bobbi Brown essentials line, which was acquired in October 1995, as well
as improved operating results in Canada.
    In Europe, the Middle East & Africa, the Company achieved net sales of
$206.0 million, a 9% increase over the prior-year period.  Net sales growth
was driven by strong performances in the United Kingdom, Benelux, Italy, and
in the distributor and travel retail businesses, partially offset by lower
sales in France and Germany resulting from the continued difficult retail
environment in those countries.  In addition, net sales in the quarter
benefited from the results of the Company's recent joint venture, which was
formed for the purpose of developing and distributing fragrances within
Europe.  First quarter operating profitability increased over the prior-year
quarter primarily due to improved operating results in the United Kingdom,
Benelux and in the distributor and travel retail businesses.
    On a local currency basis, Asia/Pacific net sales grew 9% over the prior-
year quarter, driven by sales increases in every market in the region,
including Japan.  However, due to the continued strength of the U.S. dollar
versus the yen, reported net sales were up 1% over the prior-year quarter, to
$127.6 million.  The Company achieved double-digit sales growth in Taiwan,
Korea, and Hong Kong.  Reported operating profit in the region decreased from
the prior year due to an unfavorable foreign exchange impact and the timing of
promotional support for new launches in Japan, partially offset by improved
operating results in Taiwan and Australia.
    From a product category standpoint, fragrance growth continued to be
strong, up 10% over the prior-year quarter.  Fragrance sales were driven by
the continued success of Estee Lauder pleasures and "tommy", as well as new
product launches such as "tommy girl" in the United States and Kiton in
selected European markets.  "tommy" maintained its number one position among
men's fragrances sold in U.S. department stores and "tommy girl" ranked among
the top three U.S. women's prestige fragrances during its launch period.
Makeup product sales grew 10% in the quarter due to strong growth of M.A.C.
products, the inclusion of Bobbi Brown essentials, and new product launches
such as City Base Compact Foundation and Virtual Skin.  Skin care product
sales decreased 3% due to the adverse impact of currency translation given the
concentration of skin care sales in the Asia/Pacific region, as well as to
difficult comparisons with the prior-year quarter.
    The Estee Lauder Companies Inc. is one of the world's leading
manufacturers and marketers of prestige skin care, makeup and fragrance
products.  The Company's products are sold in over 100 countries and
territories under well-recognized brand names, including Estee Lauder,
Clinique, Aramis, Prescriptives, Origins, M.A.C. and Bobbi Brown essentials.
    The forward-looking statements in this press release involve risks and
uncertainties detailed in the Company's prospectus, which was filed with the
SEC in November 1995.

                       THE ESTEE LAUDER COMPANIES INC.
                       SUMMARY OF CONSOLIDATED RESULTS
                     (In millions, except per share data)

                                                 Three Months Ended
                                                    September 30,
                                                   1996      1995
    Net Sales                                     $872.8    $833.1
    Cost of sales                                  199.8     193.3
    Gross Profit                                   673.0     639.8
    Selling, general and administrative expenses:
      Selling,  general and administrative         563.7     536.5
     Related party royalties                         8.0      10.4
    Total                                          571.7     546.9
    Operating Income                               101.3      92.9
    Interest income (expense), net:
     Interest expense, net                          (1.2)     (1.4)
        Interest income from stockholders, net        --       1.6
    Total                                           (1.2)      0.2
    Earnings before Income Taxes
     and Minority Interest                         100.1      93.1
    Provision for income taxes                      44.5      44.1
    Minority interest                               (2.9)     (2.6)
    Net Earnings                                    52.7      46.4
    Preferred stock dividends                        5.9      15.6
    Net Earnings Attributable to Common  Stock(A)  $46.8     $30.8
    Net earnings per common share                  $ .39        --
    Weighted average common shares outstanding     118.6        --
    Pro Forma Net Earnings Per Share (A):
    Net Earnings                                     n/a    $ 46.4
    Pro forma preferred stock dividends              n/a       5.9
    Pro Forma Net Earnings Attributable
     to Common Stock                                 n/a    $ 40.5
    Pro forma net earnings per common share          n/a    $  .35
    Pro forma weighted average
     common shares outstanding                       n/a     114.6

    (A)  As a result of a recapitalization in November 1995, net earnings per
share for the three months ended September 30, 1995, have been computed on a
pro forma basis assuming the recapitalization occurred at the beginning of
fiscal 1996.  Pro forma preferred stock dividends for the three months ended
September 30, 1995 reflect only recurring dividends on the Company's
$6.50 Cumulative Redeemable Preferred Stock.  Due to the change in the
Company's capital structure effected by the recapitalization, actual shares
and per share data for the three months ended September 30, 1995, are not
comparable to, or meaningful in the context of, the current period.  Likewise,
due to the recapitalization, historical earnings per share data for the three
months ended September 30, 1995, are not included herein.
    Estee Lauder Press Releases are available at no charge through Estee
Lauder Companies News On-Call fax service.  For a menu of Estee Lauder press
releases or to retrieve a specific release, call 800-758-5804, extension
251850, or use the Internet via
http://www.prnewswire.com/cnoc/exec/menu?251850/

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