Estee Lauder

Estee Lauder’s softer-than-expected sales in China through Tmall’s online platforms such as Taobao sparks questions about its ability to gain market share there. In the latest quarter, organic net sales dropped 7% in the Asia Pacific region due to lower online sales in China, despite the momentum it is seeing in brick-and-mortar in the country. The cosmetics giant has been dealing with some soft consumer sentiment in China, but it will continue investing in this market, CEO Fabrizio Freda says during a call with analysts. The company is working on improving how China and Travel Retail work in making decisions about promotions, pricing and channel composition, CEO Fabrizio Freda says. Shares jump 13% to $151.59.

The following is a summary of the Estée Lauder (EL) Q2 2024 Earnings Call Transcript: Financial Performance: Esteé Lauder reported an 8% decline in organic net sales for Q2, meeting company expectations. Earnings per share was reported at $0.88. Operating income decreased by 25% to $577 million, while the operating margin contracted from 16.6% to 13.5%. The geographical changes led to an increase in the effective tax rate to 37.7%, resulting in a 43% decrease in diluted EPS. Net cash flow from operating activities increased to $937 million from $751 million last year. Business Progress: The Asia-Pacific region indicated high growth for luxury fragrance brands and The Ordinary showed double-digit growth from specialty multi. Despite significant declines in skincare (10%) and makeup (8%) due to challenges in Asia travel retail, mainland China, and MAC, the company plans to return to organic sales growth in the latter part of the fiscal

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.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $136, up $17, is 33x our FY 25 (Jun.) EPS of $4.13 (down $1.27; FY 24’s cut $0.04 to $2.23), a premium to the 10-year average forward P/E of 32x. Q2 (Dec.) adj-EPS of $0.88 (-42% Y/Y) beat by $0.32 on revenue of $4.3B (-8% Y/Y), 1% above consensus. 8% organic decline was comprised of declines of 14%, 7%, and 1% in EMEA, Asia-Pacific, and the Americas, respectively. Expense management, despite a tax headwind, yielded the EPS surprise. EL announced a restructuring element to its profit recovery plan trimming 3%-5% of FY 23’s headcount, netting $600M in restructuring charges, and lifting incremental profit by $350M-$500M to $1.1B-$1.4B with benefits expected in FY 25 and FY 26. EL engaged Alvarez and Marsal for program

Estee Lauder Sees 3Q EPS 35c-EPS 46c.

The Estée Lauder Companies Inc. Declares Quarterly Dividend of $.66 Per Share NEW YORK–(BUSINESS WIRE)–February 05, 2024– The Estée Lauder Companies Inc. (NYSE: EL) will pay a quarterly dividend of $.66 per share on the Company’s Class A and Class B Common Stock on March 15, 2024 to stockholders of record at the close of business on February 29, 2024. The Estée Lauder Companies Inc. is one of the world’s leading manufacturers, marketers and sellers of quality skin care, makeup, fragrance and hair care products, and is a steward of luxury and prestige brands globally. The Company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, M–A–C, La Mer, Bobbi Brown Cosmetics, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, TOM FORD, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+,

GUIDANCE: (EL) THE ESTEE LAUDER COMPANIES Forecasts Fiscal Year 2024 EPS Range $2.08 – $2.23.

Estee Lauder Sees FY24 Sales Down 1% to Up 1%

Estée Lauder (NYSE:EL) Expect Q3 Reported Net Sales To Increase 3%-5%, Adjusted EPS To Range Between Decrease Of (18%) And An Increase Of 3% On Constant Currency Basis.

Estee Lauder’s (NYSE:EL) continues to forecast fiscal 2024, adjusted EPS is projected to decrease by between 34% and 38% on a constant currency basis, while the net sales outlook is between a 1% decrease to a 1% increase. Analysts polled by Capital IQ expect adjusted EPS of $2.33 on revenue of $15.74 billion.

Estee Lauder (NYSE:EL) reported fiscal Q2 adjusted earnings Monday of $0.88 per diluted share, down from $1.54 a year earlier. Analysts polled by Capital IQ expected $0.56. Net sales for the quarter ended Dec. 31 were $4.28 billion, down from $4.62 billion a year earlier. Analysts surveyed by Capital IQ expected $4.24 billion. The company said it expects fiscal Q3 adjusted EPS to range between a decrease of 18% and an increase of 3% on a constant currency basis. Net sales are projected to increase by between 3% and 5%. Analysts surveyed by Capital IQ expect adjusted EPS of $0.83 on revenue of $3.91 billion. For fiscal 2024, adjusted EPS is projected to decrease by between 34% and 38% on a constant currency basis, while the net sales outlook is between a 1% decrease to a 1% increase. Analysts polled by Capital IQ expect adjusted EPS of $2.33 on revenue

Shares of Estee Lauder Companies (EL) soared 10.7% in premarket trading Monday, after the beauty-products company reported fiscal second-quarter profit that beat expectations by a wide margin, and said the business has reached “an inflection point” that sets its up for a strong second half. Net income for the quarter to Dec. 31 fell to $313 million, or 87 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 88 cents beat the FactSet consensus of 54 cents. Sales declined 7.4% to $4.28 billion. reflecting challenges in Asia travel retail and softness in prestige beauty in China, but came in above the FactSet consensus of $4.19 billion. Among the company’s largest business segments, skin care sales fell 10% to $2.17 billion and makeup sales declined 8% to $1.17 billion. Looking ahead, the company expects double-digit percentage organic sales growth in the second half of the