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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.
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 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
- Potential retailer destocking
- Shift in traveler demographics and ongoing increase in spending on experiences impacting Asia travel retail
- Adapting to channel shifts and the challenging dynamics of a strong competitive environment amidst the slowdown in growth in prestige beauty in North America
Revenue & Expenses
Visualization of income flow from segment revenue to net income