1 week ago
Estée Lauder Sales Beat Estimates as Turnaround Gains Momentum
Estée Lauder sells beauty brands such as La Mer and Jo Malone London.
Its latest quarterly sales and profits were better than analysts expected.
The company also said its yearly revenue decline had ended.
Sales grew organically by 5% for the fourth quarter in a row.
Investors reacted positively, and the stock rose as much as 8.6% before the market opened.
Chief Executive Stéphane de La Faverie has been trying to make the company more profitable.
Estée Lauder plans to cut about 10,000 jobs and improve its operations.
It is also trying to attract younger shoppers through Amazon.com and TikTok Shop.
Estée Lauder reported fiscal fourth-quarter revenue of $3.6 billion, exceeding analyst estimates.
Adjusted earnings per share reached $0.39, also beating expectations.
The company ended three consecutive annual revenue declines and reported 5% organic sales growth.
Estée Lauder reaffirmed its 2027 sales outlook and raised adjusted operating-margin guidance.
The company confirmed an approximate net reduction of 10,000 jobs as part of its restructuring.
- Who
- Estée Lauder Companies, led by Chief Executive Officer Stéphane de La Faverie.
- What
- The company reported quarterly results above analyst expectations and advanced its turnaround plan.
- Where
- The company’s shares rose in premarket trading in New York.
- When
- The fiscal fourth quarter ended in June; the results were reported after the fiscal year ended.
- Why
- Estée Lauder is restructuring operations, cutting costs, improving profitability, speeding product launches and reaching younger shoppers.
Key facts
- Quarterly revenue
- $3.6 billion in the fiscal fourth quarter through June
- Adjusted earnings per share
- $0.39
- Organic sales growth
- 5% for the fourth consecutive quarter
- 2027 sales outlook
- Reaffirmed
- Adjusted operating margin
- Guidance raised
- Workforce reduction
- Approximately 10,000 net jobs
- Premarket share reaction
- Shares rose as much as 8.6%
Quotes
Stéphane de La Faverie
Chief Executive Officer of Estée Lauder
“We ended the year on a high note, as organic sales growth accelerated to 5% for our fourth consecutive quarter of growth and stronger profitability.”
livemint.com
Sources
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