1001250--8/20/2010--ESTEE_LAUDER_COMPANIES_INC

related topics
{system, service, information}
{acquisition, growth, future}
{condition, economic, financial}
{personnel, key, retain}
{product, market, service}
{regulation, change, law}
{operation, international, foreign}
{competitive, industry, competition}
{financial, litigation, operation}
{investment, property, distribution}
{stock, price, share}
{product, liability, claim}
The beauty business is highly competitive, and if we are unable to compete effectively our results will suffer. Our inability to anticipate and respond to market trends and changes in consumer preferences could adversely affect our financial results. Our future success depends on our ability to achieve our long-term strategy. Acquisitions may expose us to additional risks. A general economic downturn or sudden disruption in business conditions may affect consumer purchases of discretionary items and/or the financial strength of our customers that are retailers, which could adversely affect our financial results. Changes in laws, regulations and policies that affect our business could adversely affect our financial results. Our success depends, in part, on the quality and safety of our products. Our success depends, in part, on our key personnel. We are subject to risks related to our international operations. A disruption in operations could adversely affect our business and financial results. Our information systems and websites may be susceptible to outages and other risks. We are subject to risks associated with implementing global information systems. The trading prices of our securities periodically may rise or fall based on the accuracy of predictions of our earnings or other financial performance. Failure to adequately maintain the security of our electronic and other confidential information could materially adversely affect our financial condition and results of operations. As we outsource more functions, we will become more dependent on the entities performing those functions. We are controlled by the Lauder family. As a result of their control of us, the Lauder family has the ability to prevent or cause a change in control or approve, prevent or influence certain actions by us. We are a controlled company within the meaning of the New York Stock Exchange rules and, as a result, are relying on exemptions from certain corporate governance requirements that are designed to provide protection to stockholders of companies that are not controlled companies.

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