Fragrance is our heritage, and our portfolio includes many of the world's most beloved and memorable scents. The growth of our fragrance business was driven by Europe, The Middle East & Africa, which contributed 77 percent of total fragrance sales growth in fiscal 2008. Four of the top ten women's fragrances in U.S. department stores belong to our portfolio of brands. For the first half of calendar 2008, The Estée Lauder Companies accounted for 25 percent of the women's fragrance business in U.S. department stores.

More than 20 years after it was first introduced, Estée Lauder Beautiful is still the best-selling women's prestige fragrance in the United States, with Estée Lauder pleasures, Donna Karan Cashmere Mist and Clinique Happy continuing to be best sellers among American prestige consumers. After more than 40 years, Aramis is still an enduring favorite among men.

In U.S. department stores, gift sets continue to drive sales and consumer interest. In June 2008, following the important Mother's Day gift-buying period, five of the top ten gift sets sold were ours: Beautiful Summer Romantics, Estée Lauder pleasures Summer Sensation, Cashmere Mist Everyday Cashmere, Unforgivable Woman Mother's Day and Be Delicious Be Delightful sets.