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Mar 31, 2024
Estee Lauder Q3 2024 Earnings Report
Estee Lauder's Q3 2024 results were released, showing sales and EPS growth, driven by strong performance in Asia travel retail and key brands.
Key Takeaways
Estée Lauder reported a 5% increase in net sales to $3.94 billion and a rise in diluted EPS to $0.91. Organic net sales grew by 6%, primarily driven by double-digit growth in EMEA, fueled by stronger sales in Asia travel retail. The company is confident in its renewed net sales and profit growth trajectory.
Net sales increased by 5%, reaching $3.94 billion, while organic net sales grew by 6%.
Diluted EPS increased to $0.91, and adjusted diluted EPS rose to $0.97.
Asia travel retail returned to net sales growth, contributing to overall performance.
The company affirms an inflection point of net sales growth and profitability in the second half of the fiscal year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company forecasts net sales to increase between 5% and 9% and organic net sales to increase between 6% and 10% for the fourth quarter of fiscal year 2024. Reported diluted net earnings per common share are projected to be between $.11 and $.22. Excluding restructuring and other charges and adjustments, diluted net earnings per common share are projected to be between $.18 and $.28.
Positive Outlook
- Acceleration of organic net sales growth in the fiscal 2024 fourth quarter and high-single-digit growth in the second half.
- In Asia travel retail, a continuation of net sales growth in the fiscal 2024 fourth quarter, as well as investments to drive retail sales, following meaningful progress made through the third quarter.
- Clinique doubling down in Active Derma with new campaigns in the United States and the United Kingdom in the second half of fiscal 2024.
- Gross margin expansion in the second half of fiscal 2024 compared to the prior-year period.
- Stronger operating margin in the second half of fiscal 2024 compared to the first half, with expansion compared to the prior-year period.
Challenges Ahead
- Currency exchange rates are volatile and difficult to predict, expecting a 1% headwind due to foreign currency translation.
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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