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Dec 31, 2020
Estee Lauder Q2 2021 Earnings Report
Net sales increased and diluted EPS rose.
Key Takeaways
The Estée Lauder Companies Inc. reported a net sales increase of 5% and a diluted EPS increase of 56% for its second quarter ended December 31, 2020. The company's performance was fueled by Skin Care, Fragrance, Asia/Pacific, Travel Retail in Asia, and global Online, with double-digit sales growth from Estée Lauder and La Mer brands.
Net sales increased 5% and diluted EPS rose 56%.
Skin Care, Fragrance, Asia/Pacific, Travel Retail in Asia, and global Online fueled performance.
Double-digit sales growth from Estée Lauder and La Mer brands.
Successfully combined technology and data with beauty advisors to enhance online shopping experience.
Estee Lauder
Estee Lauder
Estee Lauder Revenue by Segment
Revenue by Segment
Skin Care Revenue
CapyFin.comMakeup Revenue
CapyFin.comFragrance Revenue
CapyFin.comHair Care Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The Company expects to maintain momentum and continue to deliver sequentially improving sales growth. As the global recovery from the COVID-19 pandemic progresses, the Company plans to accelerate its investment in attractive opportunities, including a recovery of categories that were most affected by the pandemic.
Positive Outlook
- Reported net sales are forecasted to increase between 13% and 14% versus the prior-year period.
- Excluding the impact of currency, net sales are forecasted to increase between 10% and 11%.
- Reported diluted net earnings per common share are projected to be between $.99 and $1.11.
- Adjusted diluted earnings per common share are expected to increase between 26% and 38% on a constant currency basis.
- The Company expects to take charges associated with previously approved restructuring and other activities.
Challenges Ahead
- Given the recent surge of COVID-19 infections globally and the uncertainty around the timing, speed and duration of the recovery from the adverse impacts of COVID-19, the Company is not providing specific sales and EPS guidance for the fiscal 2021 full year.
- The Company will continue to pursue cost savings, but expects that some expenses will be returning in the coming months including in-store and office costs.
- These costs will also reflect expenses to protect employees and consumers as they return to the Company’s facilities and retail locations.
- The Company expects to invest in areas to support the recovery, including advertising, online and supply chain, to both drive growth in areas of opportunity and help nurture emerging trends in the rest of the business.
- Currency exchange rates are volatile and difficult to predict.
Revenue & Expenses
Visualization of income flow from segment revenue to net income