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Sep 30, 2020
Estee Lauder Q1 2021 Earnings Report
Net sales decreased by 9% and adjusted diluted EPS in constant currency decreased by 14% due to temporary retail store closures and lower foot traffic, partially offset by strong online growth.
Key Takeaways
The Estée Lauder Companies reported a 9% decrease in net sales and a 14% decrease in adjusted diluted EPS in constant currency, driven by the impact of COVID-19, including temporary store closures and reduced foot traffic. However, the company saw strong online growth and significant sequential improvement in net sales growth in every product category.
Net sales decreased 9% both as reported and in constant currency.
Diluted EPS was $1.42, while adjusted diluted EPS in constant currency was $1.44.
Asia/Pacific excelled with double-digit year-over-year growth in mainland China.
Online channel thrived in every region, and innovation represented over 30% of sales.
Estee Lauder
Estee Lauder
Estee Lauder Revenue by Segment
Estee Lauder Revenue by Geographic Location
Revenue by Segment
Skin Care Revenue
CapyFin.comMakeup Revenue
CapyFin.comFragrance Revenue
CapyFin.comHair Care Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
The Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAsia/Pacific Revenue
CapyFin.com Forward Guidance
The Company forecasts net sales to decline between 5% and 3% for the second quarter of fiscal year 2021. Reported diluted net earnings per common share are projected to be between $1.41 and $1.57.
Positive Outlook
- Strong consumer demand for high-quality products remains.
- Global prestige beauty is expected to progressively return to growth.
- The company is driving to return to its long-term growth targets.
- The company is continuing to pursue several long-term strategic initiatives.
- The COVID-19 pandemic has significantly accelerated certain trends.
Challenges Ahead
- Uncertainty around the timing, speed, and duration of the recovery from the adverse impacts of COVID-19.
- Some retail locations in certain markets may not re-open.
- Likely to be lingering adverse global economic and social impacts.
- Mindful of other risks related to social, economic and political matters.
- Currency exchange rates are volatile and difficult to predict.
Revenue & Expenses
Visualization of income flow from segment revenue to net income