We continue to make progress against our key business priorities in a difficult macroeconomic environment, said Chairman of the Board, President and Chief Executive Officer Bob McDonald. We delivered solid top-line growth and continued to accelerate productivity improvements to drive down costs. With the easing of commodity cost comparisons over the next two quarters, continued solid top-line growth and cost savings progress, we expect operating profit growth to accelerate in the second half of the fiscal year.
Beauty net sales increased one percent to USD 5.4 billion on unit volume growth of one percent. Organic sales grew two percent on two percent organic volume growth. Price increases added three percent to net sales growth. Mix reduced net sales by four percent due to disproportionate growth in developing regions, which have lower than segment average selling prices, and a decrease in the premium-priced product categories. Favorable foreign exchange increased net sales by one percent. Volume grew high single digits in developing markets and decreased mid-single digits in developed regions. Volume in Hair Care increased mid-single digits behind high-single-digit growth in developing regions due to product innovation activity and distribution expansions in Asia, while developed regions decreased mid-single digits. Volume in Skin Care, Personal Care and Cosmetics decreased low single digits due to the Zest and Infasil divestitures, Olay share loss in developed markets and the volume impact of price increases due to consumer value differences relative to competitive products in North America. Volume in Salon Professional declined high single digits due to market contraction in Europe, distribution share losses and non-strategic brand discontinuations. Volume in Prestige Products decreased low single digits driven by minor brand divestitures and a strong initiative base in the prior year, offset by current year market growth and initiatives for SK-II. Net earnings declined eight percent to $802 million as higher commodity costs more than offset the impact of sales growth.
Fiscal Year 2012 Guidance
Net sales are expected to increase three to four percent in fiscal 2012. Organic sales are expected to increase four to five percent. Foreign exchange is expected to reduce net sales by one percent for the year. Pricing is expected to add four percent to sales while unfavorable product and geographic mix is expected to reduce sales by one to two percent.