Loading...
•
Sep 30, 2022
Estee Lauder Q1 2023 Earnings Report
Net sales and diluted EPS decreased due to COVID-19 restrictions in China, high inflation globally, and a strong U.S. dollar.
Key Takeaways
The Estée Lauder Companies reported a decrease in net sales by 11% to $3.93 billion and a decrease in diluted EPS by 28% to $1.35 for the first quarter of fiscal 2023. Organic net sales fell by 5%, impacted by COVID-19 restrictions in China and inventory management by retailers. Strong growth was seen in fragrance and hair care, as well as in several markets in Asia/Pacific and the West.
Net sales decreased by 11% and diluted EPS decreased by 28%.
Organic net sales decreased by 5%, impacted by COVID-19 restrictions in China.
Fragrance and Hair Care each rose double digits organically.
13 brands grew organically, including M·A·C, La Mer, Jo Malone London, and Aveda.
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 expects the remainder of the fiscal year to be pressured by the temporary disruptions due to headwinds from the COVID-19 restrictions in China, the strengthening of the U.S. dollar, record-high inflation, supply chain disruptions, and the risk of a slowdown in certain markets globally.
Positive Outlook
- Increased productive distribution throughout the year to retailers that provide new consumer reach and continued strategic entry into new countries for some of our brands.
- The mitigation of most inflationary pressures through strategic price increases, mix optimization and cost savings in other areas.
- Incremental savings from the Post-COVID Business Acceleration Program and reinvestment in advertising and capabilities.
- Full-year effective tax rate of approximately 25%.
- Sequential improvement to its results and a gradual recovery as restrictions are lifted, travel resumes to Hainan and the tightening of inventory subsides.
Challenges Ahead
- Ongoing tightening of inventory by certain of our retailers in Asia travel retail and in the United States.
- A more tempered expectation on the timing of traffic recovery in travel retail in Hainan to the second half of the fiscal year.
- The Company is mindful of ongoing risks related to the COVID-19 pandemic as well as risks related to the effects of the global macro environment, including the risk of recession.
- Foreign currency volatility; increasing inflationary pressures; supply chain disruptions; social and political issues; regulatory matters, including the imposition of tariffs and sanctions; geopolitical tensions; and global security issues.
- The Company is also mindful of inflationary pressures on our cost base and consumer behaviors.
Revenue & Expenses
Visualization of income flow from segment revenue to net income