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Dec 31, 2019
Estee Lauder Q2 2020 Earnings Report
Delivered exceptional results driven by broad-based gains across regions and categories.
Key Takeaways
Estée Lauder reported exceptional financial results for the second quarter ended December 31, 2019. Net sales increased by 15% to $4.62 billion, and adjusted diluted earnings per share rose by 21% to $2.11.
Net sales increased 15% compared to the prior-year period, reaching $4.62 billion.
Adjusted diluted earnings per common share rose 21% to $2.11.
Growth was driven by the Asia/Pacific region, skin care and fragrance categories, and online and travel retail channels.
Completed the acquisition of the Korean-based Dr. Jart+ brand, strengthening position in global skin care.
Estee Lauder
Estee Lauder
Forward Guidance
The Company expects global prestige beauty to be adversely impacted over the next few months by the coronavirus and updated its fiscal year outlook.
Positive Outlook
- Company continues to see strong consumer demand for its high-quality products.
- The Company expects to grow ahead of the industry and to continue building global share.
- Stands ready to facilitate the recovery as soon as the market dynamics support it.
- Company is mindful of risks related to social, economic and political issues.
- Company has seen a significant decline in air travel and consumer traffic in key shopping and tourist areas.
Challenges Ahead
- Global prestige beauty is expected to be adversely impacted by the coronavirus.
- The Company is mindful of risks related to social, economic and political issues, including geopolitical tensions, regulatory matters, global security issues, currency volatility and economic challenges that could affect consumer spending in certain countries and travel corridors.
- The Company’s guidance includes assumptions on the estimated impact and duration of the recent coronavirus outbreak, based on its knowledge at this time, which is still very difficult to predict.
- Company has seen a significant decline in air travel and consumer traffic in key shopping and tourist areas.
- Global travel retail, localities most affected by the virus outbreak and destination markets favored by tourists are expected to experience the greatest negative impact in the coming months followed by a gradual recovery later in the fiscal year.