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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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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