Estee Lauder Destocking In Asia On Weak Conversion Data

Estee Lauder is seeing more travellers across its Asia Pacific retail locations, but they aren’t buying as many of its beauty products as expected. Chinese travelers are among those driving conversion trends lower, CEO Fabrizio Freda says during a call with analysts. That has the cosmetics giant rethinking its selling strategy. In F2Q, the company says operating expenses increased 260 basis points, with 160 basis points of that devoted to selling, advertising, promotional activities and innovation “as we supported retail growth while also continuing to destock certain accounts in Asia Travel Retail,” says CFO Tracey Travis. Estee Lauder jumps 12% to $151.18.

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