Dennis D'Andrea - Vice President of Investor Relations Fabrizio Freda - Chief Executive Officer, President and Director Ivan Fernandez - President of Europe, Middle East & Africa Tracey Thomas Travis - Chief Financial Officer, Executive Vice President, Member of Corporate Risk Management Committee, Member of Fiduciary Investment Committee and Member of Investment Development Committee

Timothy A. Conder - Wells Fargo Securities, LLC, Research Division Javier Escalante - Consumer Edge Research, LLC Linda Bolton-Weiser - B. Riley Caris, Research Division David Wu - Telsey Advisory Group LLC Wendy Nicholson - Citigroup Inc, Research Division William Schmitz - Deutsche Bank AG, Research Division Alice Beebe Longley - The Buckingham Research Group Incorporated Mark S. Astrachan - Stifel, Nicolaus & Co., Inc., Research Division Christopher Ferrara - BofA Merrill Lynch, Research Division Caroline S. Levy - Credit Agricole Securities (USA) Inc., Research Division Ali Dibadj - Sanford C. Bernstein & Co., LLC., Research Division Lauren R. Lieberman - Barclays Capital, Research Division

Good day, everyone, and welcome to The Estée Lauder Companies Fiscal 2013 Third Quarter Conference Call. Today's call is being recorded and webcast. For opening remarks and introductions, I would like to turn the call over to the Vice President of Investor Relations, Mr. Dennis D'Andrea. Please go ahead, sir.

Thank you. Good morning, everyone. On today's call are Fabrizio Freda, President and Chief Executive Officer; Tracey Travis, Executive Vice President and Chief Financial Officer; and Ivan Fernandez, President, Europe, Middle East and Africa. Ivan will give a strategic overview of his region. Since many of our remarks today contain forward-looking statements, let me refer you to our press release and our reports filed with the SEC, where you'll find factors that could cause actual results to differ materially from these forward-looking statements. Our discussion of our financial results and our expectations are before restructuring and other charges. Tracey's discussion will also exclude the impact of sale shifts related to our SMI implementation. You can find a reconciliation between GAAP and non-GAAP figures in our press release and on the Investor Relations section of our website. And I'll turn the call over to Fabrizio.

Thank you, Dennis, and good morning, everyone. During the third quarter of fiscal 2013, consumer demand for our prestige brands and innovative products remained solid around the world. Our sales grew 3% in local currency, more than 5% excluding the advanced shipments related to our Strategic Modernization Initiative discussed with you previously and reflected in this morning's press release. And we gained share in strong markets like China, as well as in soft ones, such as Spain and Italy. The key forces driving our sales were emerging markets, e-commerce, travel retail and certain of our luxury brands. We made focused choices as we increased our media spending on our most promising opportunity, yet we also deferred some planned investment to the fourth quarter. Combined with strong improvement in cost of sales and our ongoing cost savings, we delivered 20% EPS growth before charges, which exceeded our expectations. With most of fiscal 2013 now behind us, we are confident we can achieve double-digit earnings per share growth for the fourth year in a row. In fact, this morning, we announced we are raising our fiscal 2013 EPS guidance to a range of $2.56, $2.61. Our sales growth in the quarter was tempered by continued weak economies in Southern Europe and Korea. Additionally, in the latest rollout of SMI, some short-term customer service challenges emerged, which negatively impacted our ability to ship all our orders in the quarter. We expect to have the issue resolved by the end of our fiscal year. Tracey will provide more details later in the call. Despite these difficulties, we achieved higher sales in all 3 of our regions. In the Americas, across our diverse portfolio, the strongest advances came from our top-tier luxury brand as affluent consumers continue to demonstrate their purchasing power. Additionally, the Estée…

Thank you, Fabrizio. I'm happy to be here. I have been with Estée Lauder Companies for 23 years. I have led the part of the EMEA region that covers Continental Europe, the Middle East, India and Africa for the past 5 years. My area of responsibility does not include the U.K. or travel retail, which are managed separately. This part of EMEA is a diverse region of 60 countries, managed through 17 affiliates. It represents approximately 30% of the global prestige beauty and personal care category. Within our region, France represent over 50% of the prestige category mix, followed by skin care, makeup and health care. Distribution formats vary across markets but perfumeries are the most important channel for us, with over 50% of our net sales mix, followed by department stores, freestanding stores, online and other channels. We closed fiscal 2012 in EMEA with net sales of $1.8 billion and achieved compound annual growth of nearly 7% over the last 3 fiscal years versus prestige beauty growing at 2%. In the region overall, we gained 2 points of share in prestige beauty in the 3 past years, ending calendar '12 with an estimated 13.6% share. In Western Europe, which is the largest market for prestige beauty, we have added substantial share. By creating a successful strategy and investing during a downturn, our sales have grown by nearly 6%, way ahead of prestige, which has been flat. In the emerging markets, our sales growth of 14% during the last 3 years was far above the 8% for prestige. In fiscal '13, we estimate our growth in the EMEA region to be a solid 5%, 8x faster than the prestige cosmetics industry, which has slowed even further to essentially flat, allowing us to aggressively gain share in this important market at…

Thank you, Ivan, and good morning, everyone. Reported net sales in the third quarter were $2.29 billion, a 2% increase over the prior year period. Excluding the impact of currency translation, our net sales rose 3%. Net earnings before restructuring and other charges increased 19% to $177.8 million compared with $149.2 million in the prior year quarter and diluted EPS was $0.45. EPS was higher than our previous guidance range, primarily due to the timing of some marketing and other activities, as well as a lower tax rate in the quarter. As you are aware, our third quarter sales growth was affected by the pull forward of orders into the second quarter in advance of the January rollout of the third wave of our Strategic Modernization Initiative. This acceleration reduced our third quarter results by $94 million in sales and $78 million in operating income, equal to approximately $0.13 per share. The third quarters -- the prior year third quarter also included a shift from our second wave of SMI of $30 million in sales and $23 million in operating income, equal to $0.04 per share. Excluding the shifts in both years, local currency sales would have grown by more than 5% for this year's third quarter. Please refer to the table and text included in today's press release for more details of these shifts by both region and product category. As Fabrizio mentioned, some challenges emerged later in the quarter with the latest wave of SMI. We rolled out to 7 additional countries in January, and that went well. Global supply planning also went live, integrating our overall supply planning processes with locations where we have implemented SMI. We experienced some difficulties with the additional complexity contained in this launch. And in the short term, it has led to…

[Operator Instructions] Your first question today comes from Tim Conder with Wells Fargo Securities.

Tracey, could you give us a little bit more color on the impact in the quarter from the supply-chain disruptions, whether that -- the total top line, if you can quantify that and then any EBIT impact?

Sure. So it's a bit difficult to quantify because we certainly had product substitution that happened in the trade and certainly with consumers. But we believe it was worth a couple of basis points, Tim, from a sales standpoint.

Your next question comes from Javier Escalante with Consumer Edge Research.

I just would like to understand how you see fiscal '14 shaping in terms of your operating margin expansion target of 70 to 90 basis points as you have less savings going forward and there has been a modest lift from the A&P spending, as I understand it. So how -- give you -- what gives you confidence that this new earnings growth target that you floated back in August are achievable, given the difficulties that you had, had in fiscal '13 to deliver your numbers?

First of all, we didn't get any difficulties in fiscal '13 in deliver our margin growth numbers. Actually we are over-delivering our margin growth results. And in the last 3 years, we have been growing margin in a very strong way. So we plan to continue our margin growth. As announced, our target is 15.5% to 16%. Actually, we are -- the way we are trending, we are more likely to hit the top of our guideline. Because as we said, we have the capability to grow about 0.5 margin point per year, driven by a mix of cost savings, mix of products at geography and categories and the initial impact of our SMI value creation model.

Your next question comes from Linda Bolton-Weiser with B. Riley.

I was wondering if you could explain why you think the travel retail growth for you will accelerate in the fourth fiscal quarter. Is that a function of things you see in the marketplace? Or is that specific initiatives that you have planned for the fourth quarter?

It's a combination of factors. The most important factor is that in travel retail after initial destocking during the beginning of our fiscal year, the retail sales and the net sales are now aligned. Our retail sales in travel retail has been strong and double-digit all along. And now that net sales are aligned to retail sales, this imply an acceleration of our travel retail sales. On top of that, travel retail is continuing to be very successful with expanded distribution, where appropriate, and also travel retail sales are also depending from the quality of the initiatives we have in the various countries. And as we discussed, the quality of our innovation is going to accelerate. And in this way, it's going to drive also our travel retail sales.

Your next question comes from David Wu with Telsey Advisory Group.

Can you update us on new distribution opportunities, including how the testing of Lauder at Sephora and Aveda at Nordstrom are performing? Are you planning to expand it to more doors this year? And you also mentioned introducing La Mer at select Sephora flagships in France and China. But what other brands could you introduce into new channels? And then just secondly, you mentioned that travel retail sell-ins and sell-throughs are both up double digits. But could you perhaps quantify the increase there and just update us on your distribution strategy and long-term door potential, especially just given that we are seeing more retailers open up stores in this channel?

So our distribution strategy includes a continuous increase in distribution of our key brands in specialty multi around the world. Referring to your specific question on Sephora U.S., where it's below the -- the test has basically started only few -- 6 months ago, so the test will continue. And when we will read the test, we'll decide the opportunity for the expansion. And the same for Aveda in Nordstrom. We started there recently, so we are still in the middle of the test. But there are other activities going on many of our brands, particularly our new brands. Ivan commented in his prepared remarks that the part of the strategy of expanding our brands internationally in gaining new distribution is a big part also of the forecast in Western Europe. We also are improving distribution via freestanding stores around the world. And the other big driver of distribution is China, where we are increasing distribution in tier-2 and 3 cities, and this increased distribution in tier-2 and 3 cities is actually now getting applied to more and more emerging markets in general, for example, in Brazil with the brand market. And we are opening new geographies. We recently opened some new geographies in Africa, particularly with the M-A-C brand. And we continue expanding distribution in the geographies that we opened more recently, like Vietnam and others. So -- but the -- I want also to clarify that the majority of our growth is still coming from same doors, and we are growing very well, same doors. So distribution is really a net extra versus the main strategy, the remain same-door strategy in general, as a total company. Last, your travel retail question. Yes, there are newer reports and particularly, the travel corridors, meaning where consumer travels and which nationality travel where has been studied in depth. And so we are adjusting our distribution to be completely relevant to the traveling corridors, to which consumer travels where and which are the airports, which are getting the maximum success in these years.

Your next question comes from Wendy Nicholson with Citi Research.

My question has to do just with the full year sales growth outlook. I know at the beginning of the year, you offered 6% to 8% in local currency terms, and that's kind of your long-term target. And now it's looking like it's going to be closer to 6%. And I assume that your initial guidance was actually pretty conservative because that's what it usually is. So I'm trying to understand kind of what the change is, how much of that is a reduction in category growth, how much of it is maybe less market share expansion than you had expected. And as you look towards 2014, do you think you need to step up again your investment in advertising in proportion to reaccelerate from that 6% level? Or how do you think about that?

Wendy, the -- first of all, as we explained already in the first 6 months that the big driver of our -- at the end forecast in this fiscal year, at the bottom of our initial range, so 6% to 8% -- you're right, we are projecting 6%, is mainly the change in the market assumption. The 6% to 8% was accompanied by an estimate for the market around 9% -- sorry, 5%. And today, we believe that the market is trending more 3%. So there is a, first of all, a difference in the market. And then we -- so what we see -- how we see the future is that we are going to accelerate our top line already in the fourth quarter. And the main driver of it is the acceleration of our quality of innovation by brand, as explained by Tracey in her remarks. Also for us, it's very important the alignment of retail sales and net sales for travel retail. And it's also clear that some of our difficult markets like Korea, Russia or Southern Europe, will start having, in our numbers, probably -- we hope -- we at least count on having hit the bottom or close to the bottom. Which means that in terms of comparable sales, this will be helping the growth in the next quarter and in the future in general. So that's the way we see it. So we are pretty comfortable with our 6% to 8% long-term range to continue to be our focus.

Your next question comes from Bill Schmitz with Deutsche Bank.

Can you talk about the difference between what looks like your sell-in or shipments and consumption and how long you think it's going to last? Because it seems like in pretty much every region and every brand, there's a big disconnect between the actual retail sales and kind of what you guys are shipping in. So maybe how long you think the retail destocking last. And then the second part of the question is, the margins in Europe or EMEA were great this quarter. And I'm curious if you think that level of sort of new margin is sustainable. Is there something one-off in the quarter that drove that?

So in terms of retail -- sell-in and retail, frankly, this assumption on many things is a function of innovation pipeline build. It's a function of, obviously, our going to SMI that when we announced that we'll go to SAP, the trade react, as you know, stocking gap -- and then during the SAP, like this time where have some problem, this was a good idea because the problem is being contained also because we had some stocks. So these are all managed very carefully and has a certain influence on the relation between retail and not, But the biggest influence, frankly, is the expectation on the market. There are some markets where the retailers are concerned with the trend of consumption, and they become more prudent to stock. And then when the consumer goes away, they stock back again. And this is very different in different parts of the world. You have seen this happening in the beginning of the fiscal year in travel retail, then happening in the Southern European markets in Europe, in general, during this period. And so that's the way it goes. But we managed the global portfolio in a way that we try to be as aligned as possible over the long term. Now as far as Europe is concerned, I'd like Ivan to answer this question.

Well, first of all, today, we are running our sell-out 2 points ahead of our sell-in. And so there is deciding on stocking that Fabrizio was mentioning. But our stocks are extremely healthy across Europe, so we don't expect that they will arise in the coming months. Also I think it's important to mention a little bit on outlook. On Europe where we definitely don't see a lot of change in current trends, we will still see some markets in Western Europe and positive development on emerging ones. However, we believe that we will continue outpacing the market substantially, both in Southwestern Europe and in emerging markets. And we will do that by continue focusing and strengthening our winning strategy in the skin care and makeup by accelerating, as Fabrizio mentioned, development of brands with still relatively low penetration in our portfolio. And in addition, we will play fragrance with a greater ambition. And therefore, we believe we will continue delivering growth in Europe in all categories.

Bill, it's Tracey. Lastly, I will mention, regarding your commentary on specifically the third quarter and EMEA performance. As Ivan mentioned, he does not have the responsibility for travel retail or the U.K. Travel retail was a big driver in the profit growth in the third quarter, given their sales performance. I also mentioned that we had shifted some advertising that had previously been focused on the third quarter into the fourth quarter. And that did impact travel retail as well. So not only did they have a great sales quarter, they had terrific cost performance that was driven by cost-savings initiatives, but also we did shift some timing of advertising spending.

Your next question comes from Alice Longley with Buckingham Research.

My housekeeping question is will the delay in shipments take a couple of points off of sales in the fourth quarter as well? And then my more substantive question is about the nature of your innovation. You've got these color correcting creams that you're highlighting as your major new invention in Clinique and I guess to a lesser extent, Smashbox. There are a lot of brands that have CC creams, and you're not the first with one. Can you sort of tell us why yours, particularly the Clinique one, is different and will stand out and continues your image as a hero developer?

Okay, Alice. I'll take -- this is Tracey. I'll take the first part of that question. As it relates to the SMI shifts, and I know we have a lot of different shifts to talk about with respect to our performance. But as it relates specifically to the SMI shifts, there is no impact in the fourth quarter. So that shift was between the second and the third quarter. As it relates to some of the challenges that we had with our latest SMI implementation, I mentioned that we think that, that was worth a couple of basis points in the third quarter, possibly a couple of basis points in the fourth quarter. We largely have those issues behind us. We had planned for the third quarter to be our hyper-care quarter to really resolve any issues related to the start-up. We've extended that a bit into the fourth quarter but certainly are well on our way to resolving those issues and being able to move forward with our next release of SMI.

Yes. In terms of the innovation, Clinique CC, for example, is a great formula, which also as an important advantage is the concept is very attracting. Clinique is the biggest brand in the U.S. in prestige and in total. And so when a new innovation is brought, with great product, new concept by the biggest brands has a big impact on a market, and that's what we are counting on. And by the way, we are seeing and also seeing in our tests. And then there are many other innovations. For example, Estée Lauder Advanced Night Repair eye serum is not the first eye product on the market but is a roaring success and it will definitely continue into the fourth quarter. Zegna Uomo launch is a new fragrance that is the first Estée Lauder big launch of a Zegna fragrance, and the initial results are exciting. And we have innovation, obviously, on every other brands, particularly on M-A-C, that are very exciting. There are also some innovation that we cannot yet discuss for competitive reason, that we are very excited for that will impact the near future. So we are really proud of our innovation pipeline, as we discussed in CAGNY.

Your next question comes from Mark Astrachan with Stifel, Nicolaus. Mark S. Astrachan - Stifel, Nicolaus & Co., Inc., Research Division: Tracey, just one qualification. So you're talking about a couple basis points for the supply chain. Are you talking, I assume, a couple of percentage points, so 200 basis points of the impact in the quarter?

No. No, more like 20 to 30 basis points. Mark S. Astrachan - Stifel, Nicolaus & Co., Inc., Research Division: Got it. And then if you could maybe give us some sort of updates on monthly sales trends. It looked like the data got a little bit better in the U.S. in the most recent months. You're talking about this acceleration in the June quarter. So maybe if you could talk about sort of how the last quarter played out, what you see in maybe April to date? And then if you could just specifically quantify the growth rates for travel retail China and Brazil in the March quarter, that would be helpful.

So we cannot speak about April. But what we see, as we said -- yes, you're right. In U.S. in March there was an acceleration, and it was a good one. And as I said, we are very comfortable and confident of continuous acceleration based on innovation program and our strong advertising investment in the fourth quarter, and not only in the United States. In terms of the travel retail question, we are looking for...

The travel retail growth in the third quarter was 11%. I think you asked about China as well, and shift adjusted for SMI is about 27%.

Your next question comes from Chris Ferrara with Bank of America Merrill Lynch.

I think it sounds like you said that advertising, merchandising sampling were up about 20 basis points in Q3. And there was some shift to Q4. And I think you also said Q4 is more of a normalized quarter. So I guess the question is, where is advertising going to come in relative to what you thought 3 or 6 months ago? And for Q4, when you say normalized, it's because you had a heavy up investment in Q4 a year ago and we're just going to be kind of in line with that, as a percentage of sales?

So in -- no, we didn't say a couple of basis points. Advertising was up roughly 4% in the third quarter. And what Fabrizio said is we expect that it will be flat to last year in terms of the fourth quarter -- relatively flat to last year in terms of the fourth quarter. So overall, we expect that our advertising spend will be up mid-single digits for a full year. And that's comparable to what we had expected coming into the year.

And also I would like to clarify one thing on advertising spending. The absolute amount of total advertising, merchandising sampling is also what has an important impact. And the absolute amount, the biggest absolute amount is in the fourth quarter. So the third quarter increased 4% in a 5% adjusted sales environment. So to be clear, as a percentage of sales, this was down, not up. And in the fourth quarter, we are going to be about flat in terms of total advertising but with the biggest amount in any quarter to support our innovation, which means a gain in terms of percentage of sales is going to be slightly down. So we are -- we have a very solid advertising team. And then I want to clarify on advertising, the concept that our advertising makes in a quarter is influenced enormously by which brand has innovation in that quarter, which category and which region. Because our advertising spending level is very different by brand, by category, by region. Example, if the new innovation is on M-A-C, there will be less advertising and more in-store investment than if the initiative is on Clinique, which would be more advertising investment and less in-store. If the launch is in China or is in, I don't know, in a European market, there will be a different level of advertising because China is more advertising intensive than some European markets. And the same by category, Fragrances or skin care tend to be more advertising investment than makeup. So it's very difficult for us to read the year by quarter-by-quarter progress of advertising. Just as with a normal consumer company, we depend a lot by mix of innovation and our focus is to be really delivering the maximum effectiveness and efficacy of our innovation launches, and that's the way we made the decision on advertising, not absolute level by quarter.

Your next question comes from the line of Caroline Levy with CLSA. Caroline S. Levy - Credit Agricole Securities (USA) Inc., Research Division: Not to beat a dead horse, but in terms of looking at the acceleration of sales, according to my numbers for year ago, your comps are actually tougher in travel retail and in China than they were this quarter. So I just want to be clear that you really expect those key markets will be strong despite that. And then just, again, on the 15 days of inventory that's ahead of where you were a year ago, doesn't that make your challenge even greater to grow that top line the required 7% to 8% of the fourth quarter, to make the full year?

I'll take the first part of your question. Yes, we had a great last quarter also last year. But as I said, we are very comfortable with our innovation program and our plans. However, within last year, the days of last year of the countries where we had the toughest challenge this year, meaning Korea and Russia, were lower in the last quarter. So in this sense, we have an easier comp where we had challenges and we have a challenging comp where our business is anyway very strong and will be accelerated by innovation. Tracey?

And the extra 15 days of inventory, assuming that it's the right inventory, actually helps us from a sales standpoint. As we see an acceleration of sales, we expect to draw down on that inventory.

Your next question comes from Ali Dibadj with Sanford Bernstein. Ali Dibadj - Sanford C. Bernstein & Co., LLC., Research Division: So it seems like you've been very careful about the language you're using around market share, whether it be in the prepared remarks or in the press release. And given that skin care grew about 3% adjusted, given that Americas was only about 4%, can you give us a sense of a few things, one is what was your market share globally, so what was the change? And two, to come back to this question of are you spending enough -- you choose your words Fabrizio, you over-delivered on margins. I think you'll probably continue to do that. But I think at least to some expectations, top line is a little bit tougher. So can you just give us a little more confidence about that? And the last thing is, I think part of your answer will probably be about the category growth rates slowing. Do you have any insight on what was driving that growth between price, volume and mix? Because when we look at your peers, you don't see as much of a slowdown.

So internal growth, again, we have a plan over the long term of 6% to 8% growth every year. And as I said, there could be years where we are 6% or 7% and years it will be 8%. So 6% to 8% is our ability to grow. We have a strong innovation program for the future. We believe we'll be in the 6% to 8% growth. The big change was the market estimate this year. The market was supposed to grow by about 5%. We estimate the market will be growing about 3%. And that's why in this fiscal year, we are forecasting to end up at the lower part of our range. But we believe that this quarter, the quarter 4 will accelerate this. And we are confident in this acceleration. Sorry, the second part of your question?

Can you repeat the second part?

Could you repeat the second part, sorry, on advertising spending which I... Ali Dibadj - Sanford C. Bernstein & Co., LLC., Research Division: So yes, so the second part was around just the over-delivering that you're clearly doing and will probably continue to do on margins. But a little bit less than expected on top line, particularly versus your peers. So again, kind of are you spending enough question. And then to your point about the category growth, being what's slowing a little bit, if you could give us more insight on whether that's pricing or volume or mix?

Yes. So in terms of pricing, our -- there's about 2 points to pricing in our sales, and that's been also consistent in the last years. And we do not expect this to change in a very significant way. In terms of growth versus competition, we are growing 2 points at least above market. So we are growing global market share. We are growing global market share in some markets more than others. In the U.S., we have, for example, we are stable in market share this year in makeup and skin care, and we are losing market share in fragrances. And in fact, we are going to work now in acceleration innovation in skincare and makeup to accelerate growth and we are going to be more active in fragrance to start growing also in the Fragrance category. I'd also want to point out for example, in the U.S., that the overall market grew 12% versus mass growing 1%. So we have about 40% market share in the U.S. So the double-digit growth of the prestige market in the U.S. that we are generating with our activity is benefiting, first of all, us. So even in the context of a stable market share for some months, this is still very beneficial and is still the right strategy to continue to source and -- from mass and grow the category as a whole, where we have a big market share. In markets where we have smaller market share like Europe, you just heard Ivan's comments where market share gain has been spectacular, in market like Italy, where the market is minus 5%, we've been growing 7%. Again, this is by choice. Because since the euro, we have a 13.7% market share, we are aiming at growing market share, taking advantage of…

We have time for one more question. Your last question comes from Lauren Lieberman with Barclays.

So I just wanted to clarify, Fabrizio, I apologize because I'm not that bent out of shape about market share. But I think you just said that U.S. prestige was growing 12%. And I know this quarter, North America was up 4% underlying. So that doesn't suggest shares are stable. I don't know if a lot of that is from Fragrance or what the dynamic is. So that's just a clarification point. My real question was more forward-looking just about innovation. So -- and hopefully this isn't the one you didn't want to talk about. But the relaunched Dramatically Different Moisturizer, because I've read about it in the media, and I thought that it was slated for June and it looks like it's now coming in August. So is that correct in kind of assuming that gets pushed into next year as a potential meaningful launch activity? Then also on La Mer, the Sun Care launch, I think that's really interesting, and you didn't mention it. Is that sort of a softer initiative and kind of build through the summer? Or is it a lay the groundwork now and it's more of a push for next year's sun season? And then finally on the CC cream for Clinique, I've seen a lot of advertising, so I just didn't know if it had the real push kind of started and it's really been kind of late March into April, so that's why it impacted Q4 more than Q3?

So on the U.S. NPD sales 12% in the last -- in March. And so is the -- I will just indicate in this as how much prestige is growing more than mass. And we have been growing also at retail very, very well in the March month, as you probably know, from NPD data. In terms of our big initiative on Clinique that you mentioned, yes, this is a big initiative. And we are doing it in the moment we believe is the right moment from a competitive standpoint in every market. So if we are continuing to adjust the launch dates and activities is based on our decision by market and our competitive position more than anything else. But, yes, this is going to be a very important initiative for us, and we believe will be a successful one. And then in terms of La Mer, yes, this has been recently launched and obviously, this is an important initiative for La Mer summer. And for the La Mer brand, this is going to be an important initiative. The specific SKUs are not going to be significant in the context of the total company but very important for the La Mer brand.

That concludes today's question-and-answer session. If you were unable to join the entire call, a playback will be available at 1 p.m. Eastern Time today through May 16. To hear a recording of the call, please dial (855) 859-2056, passcode 52045999. That concludes today's Estée Lauder conference call. I would like to thank you all for your participation, and wish you all a good day.