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Mar 31, 2022
Estee Lauder Q3 2022 Earnings Report
Net sales and diluted EPS increased, with organic net sales growing and adjusted diluted EPS rising in constant currency, driven by western markets and brick-and-mortar performance.
Key Takeaways
The Estée Lauder Companies Inc. reported a strong fiscal 2022 third quarter with net sales of $4.25 billion, a 10% increase from the prior-year period, and organic net sales increased 9%. Diluted net earnings per common share was $1.53, compared with $1.24 in the prior-year period. Adjusted diluted earnings per common share was $1.90, an 18% increase in constant currency.
Net sales increased 10% and diluted EPS increased 24%.
Organic net sales grew 9% and adjusted diluted EPS rose 18% in constant currency.
Western Markets and Brick-and-Mortar Outperformed.
Every category grew organically, led by Fragrance’s outstanding performance globally and the makeup renaissance in western markets.
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 is revising its full fiscal year outlook, reflecting both outstanding performance year-to-date and additional headwinds that are impacting the fourth quarter of fiscal 2022, including the COVID-related restrictions in China, that are also affecting its travel retail business, and the impact of the invasion of Ukraine.
Positive Outlook
- Growth in developed markets in the west and brick-and-mortar retail driven by a continued recovery of the makeup and hair care categories as countries reduce COVID-19 restrictions.
- Targeted new distribution throughout the year to retailers that provide broader consumer reach.
- A continued gradual resumption of international travel in Europe and the Americas.
- Benefit from a nearly full year incremental impact of DECIEM in net sales and operating results.
- Incremental savings from the Post-COVID Business Acceleration Program and reinvestment in advertising and capabilities.
Challenges Ahead
- Global volatility and variability is expected to continue, including inflation, supply chain disruption (including temporary reduced capacity at China distribution facilities), impacts related to current COVID-19 restrictions (primarily in Greater China including store closures, reduced traffic and less travel), and disruptions in Europe related to the invasion in Ukraine.
- Higher transportation and logistics costs are negatively impacting both cost of sales and operating expenses in the remainder of fiscal 2022.
- The Company expects to take charges associated with previously approved restructuring and other activities.
- Currency exchange rates are volatile and difficult to predict.
- The increase in ownership of DECIEM is expected to be $.02 dilutive to diluted earnings per common share.
Revenue & Expenses
Visualization of income flow from segment revenue to net income