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Dec 31, 2021
Estee Lauder Q2 2022 Earnings Report
Net sales and diluted EPS increased, with organic net sales growing and adjusted diluted EPS increasing in constant currency, driven by recovery in western markets and a raised full year outlook.
Key Takeaways
The Estée Lauder Companies reported a strong second quarter for fiscal year 2022, with net sales increasing by 14% to $5.54 billion and diluted EPS rising by 25% to $2.97. Organic net sales grew by 11%, and adjusted diluted EPS increased by 15% in constant currency. Every region and product category expanded, showcasing the strength of the company's multiple engines of growth strategy.
The Estée Lauder Companies achieved record sales and profitability in the second quarter of fiscal 2022.
Net sales increased 14% and diluted EPS rose 25%.
Organic net sales grew 11% and adjusted diluted EPS increased 15% in constant currency.
The company is raising its fiscal 2022 full year outlook.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company is raising its full fiscal year outlook, reflecting both outstanding performance to date and the risks of continued volatility and disruptions in the second half of the year.
Positive Outlook
- Global volatility and variability is expected to continue, including inflation, supply chain disruption and COVID-19 restrictions. The Company believes it can continue to manage through this uncertain environment while driving multiple engines of growth.
- A continued recovery of the makeup and hair care categories as countries reduce COVID-19 restrictions.
- Growth in developed markets in the west and in brick-and-mortar retail.
- Targeted new distribution throughout the year to retailers that provide broader consumer reach.
- A continued gradual resumption of international travel.
Challenges Ahead
- Higher transportation and logistics costs are expected to negatively impact both cost of sales and operating expenses in the remainder of fiscal 2022.
- The Company is mindful of ongoing risks related to the COVID-19 pandemic as well as risks related to social, economic and political matters, including restructurings and bankruptcies in the retail industry, geopolitical tensions, regulatory developments, global security issues, currency volatility, general economic challenges, including increasing inflationary pressures and supply chain disruptions, and changes in consumer preferences that affect consumer spending in certain countries, channels and travel corridors.
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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