Fabrizio Freda
President and Chief Executive Officer at Estée Lauder Companies
Thank you. Rainey, and hello everyone. It is good to be with you today as our hearts continues to be with those impacted by COVID-19 around the world. We achieved record sales and profitability in the second quarter of fiscal year 2022. Our multiple engines of growth strategy showcased the benefit of its diversification. Every category, region, and major channel expanded. We size the favorable dynamics of Skin Care, Fragrance developed markets in the West, brick-and-mortar and continue to prosper in the East with Chinese consumer as well as in Global Travel Retail and Global Online.
The flexibility we built into our business model over the last decade enable us to both allocate resources to attractive growth opportunities and effective manage the impacts while increasing inflation environment. Our advanced planning for the key shopping moments of 11/11 and holidays allowed us to overcome supply chain obstacles. For our second quarter, reported net sales grew 14%, organic net sales rose 11%, adjusted operating margin expanded and adjusted diluted earnings per share increased 15%.
Today, results are all the more impressive compared to the pre-pandemic second quarter of fiscal year 2020, when we delivered record organic sales growth in our seasonally largest quarter. Despite the ensuing challenges of COVID-19 which escalated during the quarter with Omicron, we far exceeded the exceptional results of 2 years ago. Reported sales are 20% higher, driven by organic sales growth and with area region now larger, and we are much more profitable. Our gains during the last 2 years reinforce our confidence in our ability to navigate the impacts of the prolonged pandemic. Moreover, our optimist in the opportunities of tomorrow remains incredibly strong owing to the timeless desirability of our brands and our commitment during the pandemic to invest for the near and the long-term.
Our brand portfolio of large, scaling and developing brands served as a powerful catalyst for growth as consumer reward the quality of our trusted brand and hero products. In the second quarter, 11 brands achieved double-digit organic sales growth versus the prior year period. This broad-based strength is similar to the contribution in the first quarter despite a far tougher comparison. The momentum in our largest brands,Clinique, Estee Lauder, La Mer and M.A.C. continues as the hero franchises capitalize on innovation in product engagement and high-touch experiences in services to drive trial and repeat. La Mer and Clinique delivered standout results in Skin Care, while Estee Lauder and M.A.C. drove Makeup's emerging renaissance.
Our scaling and developing brands achieved excellent results. Jo Malone London and Tom Ford Beauty led Fragrance and were among our top performing brands. While Bobbi Brown grew strongly driven by Skin Care. Aveda and Bumble and bumble delivered accelerating sales growth in Hair Care, as Too Faced and Smashbox rose double digits in Makeup.
Product innovation also served as a powerful catalyst for growth across our brand portfolio contributing nearly 25% of sales. This level of contribution is notable in a quarter when holidays exclusives represent a larger mix of business, and especially so in a challenged supply chain environment. La Mer, fueled by its iconic heroes on trend holidays merchandising in highly sought new The Hydrating Infused Emulsion led the company's sales growth. The brand excelled in every region and across major channel, cheered by its loyal consumers and embraced by a new cohort of consumers including more men.
Clinique Skin Care portfolio with desirable innovation in hero franchises performed strongly. It's new Smart Clinical Repair Wrinkle Correcting Serum drove sales gains in North America amplifying the brand's global momentum in the serum subcategory. Clinique Take The Day Off makeup remover saw a dramatic uptick in sales, evidence of Makeup's emerging renaissance and the staying power of this favorite Skin Care product which is recruiting a new generation of consumers.
For Makeup, the Estee Lauder brand is a driving force in the category emerging renaissance with Makeup sales for the brand already larger than 2 years ago. Estee Lauder's Double Wear hero franchise delivered remarkable performance, while its Futurist foundation, which is an East to West product borne of skinnification of Makeup trend was very strong.
Our Fragrance portfolio continue to go from strength to strength owing to the enduring fan-based ritual created in the pandemic and enhanced by innovation, better online storytelling and expanded reach as consumer in the East embrace this category. Each of Jo Malone London, Tom Ford Beauty, Le Labo, Kilian Paris and Frederic Malle delivered strong double-digit growth in every region demonstrating value of these brands around the world.
Tom Ford Beauty exemplifies the benefits of a strategic focus on heroes and innovation. It's new Ombre Leather Parfum had a halo effect on the Ombre Parfum such that sales for the franchise doubled. In the third quarter, the brand is leveraging its global appeal with a flair of local relevance in the fragrance launch of Tom Ford Rose trilogy.
Our growth engines also continue to diversify by region, as we anticipate. Developed markets in the West performed especially well. North America executed with excellence to capture brick-and-mortar reopening trends and delivered a strong holiday across channels. Festive seasonal exclusives, including Estee Lauder blockbuster set and Aveda collaboration with Phillip Lim proved highly sought, indeed our in-store and online activation in merchandising were incredibly successful, with brand dotcom posting a record Black Friday. Every category grew double-digits organically in North America, led by Makeup where our brands pay a trusted product with enticing innovation as social and professional use education increased. M.A.C., Bobbi Brown and Too Faced produced engaging content and artists led education to inspire consumer to size the joy and creativity of the category.
Mainland China delivered high single digit organic sales growth, an impressive result given the regional restrictions in the quarter that pressured brick-and-mortar and Makeup. Online sales rose double-digits organically, even after having posted significant growth in the year ago period. For 11/11 on Timo, the Estee Lauder brand ranked number 1 flagship store in beauty for the second consecutive year as La Mer flagship store topped luxury beauty once more and Jo Malone London again led in Prestige Fragrance. On JD, the Estee Lauder brand ranked number 1 flagship store in beauty in its first year. Skin Care and Fragrance grew double digit organically in Mainland China. Hero products and innovation excelled driving new consumer acquisition and repeat purchases. Several brands expanded prestige beauty share in the quarter, including Estee Lauder, La Mer and Dr.Jart+.
Looking ahead, we are excited about the long-term growth opportunity in the vibrant Asia Pacific region and most notably in China. We are few months from opening our new innovation center in Shanghai. Our aspiration for it are both as we aim to meet and exceed the desires of Chinese consumers. The center is designed to enable end-to-end innovation from concept for product packaging to development scale-up and commercialization. I am pleased to share that the build out of our state-of-art manufacturing facility near Tokyo is also progressing very well, which is a testament to the amazing work of our global supply chain team amid the pandemic. Its first phase is complete and we are on-track to start limited production by the first quarter of fiscal year 2023.
Our growth engines further diversified by channel as both online and brick-and-mortar prospered. Specialty multi and department store contributed meaningfully and freestanding store in the West performed very well on reopening. Traffic improved and complemented our strategic actions, including those under the post-COVID business acceleration program to benefit productivity in brick-and-mortar. This channel strengths are encouraging for the long-term even if temperate in this moment by Omicron.
We continued to expand our omnichannel capabilities in the quarter to give consumer flexible and convenient shopping options for greatest certainly for fulfillment. Buy-online-pickup-in store offerings in the United States for M.A.C, Aveda, Jo Malone London and Le Labo are driving favorable average for the value trends and we are expanding the capability to more doors internationally, which holds great promise for the future.
Our Global Online channel delivered excellent performance with organic sales rising high single-digit after having surged over 50% in the year ago period. Each of brand dotcom third-party platform pure-play and retail dotcom contributed to growth. The drivers included higher levels of engagement for virtual trying on and tools for choosing shade and scent, sophisticated simply to drive trial and repeat a more and better live streaming. Indeed in North America, La Mer generated the most sales from a live stream to-date in the quarter.
Our brands are innovating in social commerce on Instagram, Snapchat, TikTok and WeChat among others. We gained momentum in this promising online ecosystem during the quarter. Too Faced leveraged in Instagram live shopping event to launch its new fragrance. Estee Lauder Double Wear followers on TikTok skyrocket with its latest campaign also driving brand awareness and affinity much higher, and Tom Ford Beauty creatively debuted its new flagship site on WeChat's mini-program in China.
Embedded with these outstanding results across categories, region, and channels is the progress we are making in social impact and sustainability. Since we spoke with you in November, we are pleased to have received several external recognition of our ESG efforts. We were named to Forbes Inaugural List identifying the world's top female-friendly companies leading the way to support women inside and outside they were forces, and for the 5th year in a row, we were named to Bloomberg Gender-Equality Index. We were included in the CDP's Climate A list for the second consecutive year, which is a tribute to our deep commitment to climate action and the highest level of transparency around our environmental impact. Last, hence as CI recognized our progress toward our 2020 side ESG goal, in its recent upgrade of the company to an A-rating.
The company, our brands and our employees at a number of events in activations planned in honor of Black History Month and we are continuing to focus on our racial equity commitments and the work of accomplishing our goals. As we embark in on the second half of our fiscal year, our innovation pipeline is rich with newness, especially for sustainability. La Mer newly advanced The Treatment Lotion, which will be on country merch as a powerful upgrade inside and out crafted using our unique Green Score methodology and housed in a new recyclable glass bottle made with 20% post-consumer recycled glass. This methodology which was peer-reviewed in academic journal Green Chemistry during the quarter evaluates ingredients and formulas throughout the lenses of human health, ecosystem health and the environment. This approach can be adopted, build upon and scaled by others across our industry to further advance sustainability.
Estee Lauder is launching an all new Revitalizing Supreme moisturizer created with innovation formula and ingredients in a new recyclable glass jar. Smashbox is introducing Photo Finish Silkscreen Primer collection usually vegan formulas with the skin defending complex and instant makeup benefits. Lastly, DECIEM, vegan brand, The Ordinary, is welcoming back salicylic acid 2% solution boosting posting a wait list of over 400,000 for the new formula.
In closing, we delivered outstanding performance amid the accelerated volatility and variability, as well as supply chain challenges of the pandemic. This demonstrate that we have the competency to navigate complexity well. Our commitment to invest for the long-term is of great importance in this moment as we benefit from the advancement we have made over the last few years, it definitely takes technology, R&D and supply chain. These enhanced capabilities combined, we have a strong portfolio of desirable brands, exceptional talent and more flexible resource allocation and enabling us to realize the power of our multiple engines of growth strategy, even in a difficult external environment.
The grace, wisdom and ingenuity of our employees in this still challenging moment knows no bounds. They are the embodiment of our company's strong culture, and to them, I extend my deepest gratitude.
I will now turn the call over to Tracey.
