Estee Lauder Companies Inc EL shares are trading slightly lower after the company reported its fourthquarter results. The company reported sales growth of 7% Y/Y to $3.87 billion, beating the analyst consensus estimate of $3.83 billion. Organic net sales grew 8% Y/Y, fueled by broad-based gains across all product categories, with Skin Care leading the way, driven by the company's global travel retail segment. Organic net sales in the Americas declined 5%, with sales in Europe, Middle East & Africa climbed 3 ...

Net Sales Performance - Net sales decreased by 2% to $15.61 billion in fiscal 2024, with organic net sales also declining by 2%[1] - Skin Care net sales decreased by 3%, primarily due to softness in mainland China and Asia travel retail[11] - Makeup net sales decreased by 1%, driven by global travel retail business and prior-year benefits from M·A·C's loyalty program changes[13] - Fragrance net sales increased by 2%, led by mid-single-digit growth from Luxury Brands[14] - Hair Care net sales declined by 4%, primarily due to Aveda's performance in North America[16] - Net sales in The Americas increased by 1% to $4,581 million, driven by double-digit growth in Latin America, particularly in Mexico and Brazil, offset by flat performance in North America[17][19] - Europe, the Middle East & Africa net sales decreased by 2% to $6,140 million, primarily due to challenges in Asia travel retail, partially offset by growth in Skin Care, Makeup, and luxury fragrance brands[17][20] - Asia/Pacific net sales decreased by 3% to $4,888 million, with mainland China experiencing a decline, while Hong Kong SAR and Japan saw double-digit growth[17][21] - Total net sales for the company decreased by 2% to $15,608 million, with organic net sales declining by 2%[17] - Net sales for the three months ended June 30, 2024, increased by 7% to $3,871 million compared to $3,609 million in the same period in 2023[47] - Net sales for the year ended June 30, 2024, decreased by 2% to $15,608 million compared to $15,910 million in the previous year[47] - Net sales for the three months ended June 30, 2024, were $3.871 billion, with a 7% increase on a non-GAAP basis and 8% on a constant currency basis[59] - Net sales for the year ended June 30, 2024, were $15.608 billion, with a 2% decrease on a non-GAAP basis and 1% decrease on a constant currency basis[61] Earnings and Profitability - Diluted EPS declined by 61% to $1.08, while adjusted diluted EPS decreased by 25% to $2.59[1] - Net earnings dropped to $0.39 billion from $1.01 billion in the prior year, with an effective tax rate of 47.0%[2] - Total reported operating income decreased by 36% to $0.97 billion, with adjusted operating income down 10% to $1.64 billion[7] - Operating income in The Americas increased by $174 million, driven by a full-year true-up of charges and a decrease in intangible asset impairments, partially offset by lower intercompany royalty income[19] - Operating income in Europe, the Middle East & Africa was virtually flat, with a decrease of $131 million offset by lower costs of sales and reduced royalty expenses[20] - Operating income in Asia/Pacific decreased due to a $371 million increase in goodwill and intangible asset impairments related to Dr.Jart+[21] - Net loss for the fiscal 2023 fourth quarter was $284 million, with a diluted net loss per common share of $.79, compared to a net loss of $33 million and diluted net loss per common share of $.09 in the prior-year period[28] - Adjusted diluted net earnings per common share for the three months ended June 30, 2024 was $.64, up from $.07 in the same period in 2023, and $.67 in constant currency[28] - Reported diluted net earnings per common share for fiscal 2025 are projected to be between $2.52 and $2.76, with adjusted diluted net earnings per common share expected to increase between 7% and 15% on a constant currency basis[36] - Reported diluted net earnings per common share for the first quarter of fiscal 2025 are projected to be $(.09) to flat, with adjusted diluted net earnings per common share expected to decrease between 89% and 17% on a constant currency basis[38] - Gross profit for the three months ended June 30, 2024, increased by 14% to $2,778 million, with a gross margin of 71.8%, up from 67.8% in the same period in 2023[47] - Gross profit for the three months ended June 30, 2024, was $2.778 billion, showing a 13% increase on a non-GAAP basis and 14% on a constant currency basis[59] - Gross profit for the year ended June 30, 2024, was $11.184 billion, showing a 2% decrease on a non-GAAP basis and 1% decrease on a constant currency basis[61] - Operating income for the three months ended June 30, 2024, improved to $349 million on a non-GAAP basis, compared to an operating loss of $233 million as reported[59] - Operating income for the year ended June 30, 2024, was $970 million, with a 13% decrease on a non-GAAP basis and 10% decrease on a constant currency basis[61] - Net earnings for the twelve months ended June 2024 were $409 million, down from $1,010 million in the previous year[63] Impairments and Restructuring - The company recorded a goodwill impairment charge of $291 million and an intangible asset impairment charge of $180 million for the Dr.Jart+ reporting unit in fiscal 2024[51] - The company announced a two-year restructuring program expected to result in charges between $500 million and $700 million, focusing on reorganization and process simplification[48] - The company expects to take restructuring charges between $99 million and $119 million for the full year fiscal 2025, and between $54 million and $59 million for the first quarter fiscal 2025[36][38] - Total restructuring and other charges for the year ended June 30, 2024, amounted to $618 million, with a diluted EPS impact of $1.51[55] - For the year ended June 30, 2023, total restructuring and other charges were $314 million, with a diluted EPS impact of $0.67[56] - The company recorded an impairment charge of $100 million for Dr.Jart+ and $86 million for Too Faced trademarks due to changes in circumstances and increased weighted average cost of capital[53] - Other intangible asset impairment charges for the twelve months ended June 30, 2023, were $207 million ($159 million, net of tax), impacting $0.44 per common share[54] Cash Flow and Financial Position - Net cash flows from operating activities increased to $2.36 billion, up from $1.73 billion in the prior year, driven by lower working capital and improved inventory management[22] - The company ended the year with $3.40 billion in cash and cash equivalents and paid dividends of $0.95 billion[23] - Cash and cash equivalents decreased to $3,395 million from $4,029 million year-over-year[62] - Accounts receivable increased to $1,727 million from $1,452 million year-over-year[62] - Inventory and promotional merchandise decreased to $2,175 million from $2,979 million year-over-year[62] - Total current assets decreased to $7,922 million from $9,139 million year-over-year[62] - Net cash flows from operating activities increased to $2,360 million from $1,731 million year-over-year[63] - Capital expenditures were $919 million, down from $1,003 million in the previous year[63] - Dividends paid increased to $947 million from $925 million year-over-year[63] - Proceeds from issuance of long-term debt, net were $648 million, down from $1,995 million in the previous year[63] - Payments for acquisition of redeemable noncontrolling interest were $745 million[63] Strategic Initiatives and Outlook - The company anticipates continued declines in the prestige beauty segment in China for fiscal 2025, with plans to drive share gains[3] - The Profit Recovery and Growth Plan aims to offset profitability pressures in China, with a focus on cost structure and organizational agility[4] - The company expects global prestige beauty to grow 2%-3% in fiscal 2025, with a re-acceleration to mid-single-digit growth in fiscal 2026, assuming stabilization and growth in China[29] - The company anticipates more tempered performance in fiscal 2025 due to significant business in mainland China and Asia travel retail, but expects accelerated net sales growth elsewhere driven by strategic priorities[30] - The Profit Recovery and Growth Plan (PRGP) is expected to drive operating profit net savings of $1.1 billion to $1.4 billion in fiscal years 2025 and 2026, with slightly more than half realized in fiscal 2025[31] - Full-year fiscal 2025 net sales are forecasted to range between a decrease of 1% and an increase of 2% versus the prior year[35] - First quarter fiscal 2025 net sales are forecasted to decrease between 5% and 3% versus the prior-year period[37] - The company revised its internal forecasts for the Dr.Jart+ and Too Faced reporting units due to lower-than-expected growth in key geographic regions and channels impacted by COVID-19[52] Acquisitions and Investments - The company completed the acquisition of DECIEM Beauty Group Inc. for $859 million, with $829 million paid as of June 30, 2024[23] - The company recorded $15 million and $23 million in expenses related to the change in fair value of DECIEM acquisition-related stock options for the three and twelve months ended June 30, 2024, respectively[50]

The shares of Estee Lauder Companies Inc (NYSE:EL) are 0.7% lower at $94.51 at last look, after a bear note from BofA Global Securities. The Wall Street analyst downgrade EL to "neutral" from "buy" and lowered its price target by $40 to $100, citing headwinds in China and softening demand in the U.S. This pessimistic note precedes Estee Lauder's fiscal fourth-quarter earnings call, due out before the open on Monday, Aug. 19. Per Zacks, Wall Street anticipates the cosmetics giant to report a year-over-year r ...

The Estée Lauder Companies Inc. EL is expected to release earnings results for its fourth quarter, before the opening bell on Monday, Aug. 19. Analysts expect the New York-based company to report quarterly earnings at 27 cents per share, up from 7 cents per share in the year-ago period. Estée Lauder is projected to post revenue of $3.83 billion. It reported $3.63 billion a year earlier, according to data from Benzinga Pro. With the recent buzz around Estee Lauder, some investors may be eyeing potential gain ...

The Estee Lauder Companies Inc. (EL) is likely to see top and bottom-line growth when it reports fourthquarter fiscal 2024 earnings on Aug 19. The consensus mark for quarterly revenues is pegged at $3.83 billion, which indicates growth of 6.2% from the prior-year quarter's reported figure. The Zacks Consensus Estimate for earnings per share (EPS) has decreased 2 cents in the past 30 days to 25 cents, calling for a significant improvement from 7 cents reported in the year-ago period. EL has a trailing fourqu ...

Renphoto/E+ via Getty Images Summary And Key Takeaways Estée Lauder (NYSE:EL) was once a hyped darling of the masses, with its stock trading at lofty valuations. The rise was only short-lived, though, and the fall well deserved, as the business has been suffering for several years now. Despite being down by ~75% from the high, I don't see any reason to rush in. To the contrary, even the dividend is in jeopardy. Why This Beauty Isn't Pretty Anymore - Better Prepare For A Dividend Cut Estée Lauder was founded ...

In its upcoming report, Estee Lauder (EL) is predicted by Wall Street analysts to post quarterly earnings of $0.25 per share, reflecting an increase of 257.1% compared to the same period last year. Revenues are forecasted to be $3.83 billion, representing a year-over-year increase of 6.2%. The consensus EPS estimate for the quarter has been revised 7.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates du ...

The market expects Estee Lauder (EL) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 19, 2024, might help the stock move higher if these key numbers are b ...

Estee Lauder (NYSE:EL), one of the pioneer companies in the cosmetics industry, has seen its stock get hammered by more than 70% since its all-time highs by the end of 2021 and close to 30% since its recent highs in March 2022. Despite this massive underperformance compared to the S&P 500, which is up more than 15% year-to- Additionally, the company can be considered a legacy company due to its main distribution channels, which are physically in retailers trying to provide what is called High-Touch services ...

AFP via Getty Images Why Are These Deals Happening? The glasses are getting good reviews and traction in the market and it may be that putting technology into a cool package may be the unlock that Google Glass missed. Their success makes it sensible for the two companies to be further engaged and connected. If you wear glasses, you know how much time it takes for you to get new eyewear. First, you need an examination to get your eyes refracted and get a new prescription. Then you have to go to a store and c ...