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Jun 30, 2024
Estee Lauder Q4 2024 Earnings Report
Net sales increased by 7% and adjusted diluted EPS increased, exceeding expectations for profitability.
Key Takeaways
Estée Lauder Companies reported a 7% increase in net sales for the fourth quarter of fiscal year 2024, with organic net sales up 8%. The company experienced growth across all product categories, led by Skin Care, and benefited from its global travel retail business. Adjusted diluted earnings per share increased to $0.64, up from $0.07 in the prior-year period.
Organic net sales increased by 8%, driven by growth across all product categories.
Skin Care led growth, with significant contributions from the global travel retail business.
The Americas net sales declined by 5%, impacted by distribution mix and a competitive environment.
Adjusted diluted net earnings per common share increased to $0.64, up from $0.07 in the prior-year period.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company expects global prestige beauty to grow 2%-3% in fiscal 2025. Reported and organic net sales are forecasted to decrease between 5% and 3% versus the prior-year period. Adjusted diluted net earnings per common share are expected to decrease between 89% and 17% and range between $.01 and $.09 on a constant currency basis.
Positive Outlook
- Targeted expanded consumer reach across geographies and distribution channels
- Gradual improvement in mainland China and Asia travel retail in the second half of fiscal 2025
- Full-year increase in net sales in North America driven in part by leveraging winning distribution channels, such as Amazon’s U.S. Premium Beauty store
- The rest of the business is expected to accelerate growth, on average
- Full-year adjusted operating margin of 11.0% to 11.5%, inclusive of PRGP benefits
Challenges Ahead
- Mainland China and Asia travel retail are generally expected to decline on a full-year basis
- More tempered performance than the industry, mainly driven by its significant business in mainland China and Asia travel retail
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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