Estee Lauder beats by $0.47, reports revs in-line; guides Q4 EPS below consensus; guides FY24 EPS below consensus, revs below consensus (146.71)
- Reports Q3 (Mar) earnings of $0.97 per share, excluding non-recurring items, $0.47 better than the FactSet Consensus of $0.50; revenues rose 5.0% year/year to $3.94 bln vs the $3.92 bln FactSet Consensus.
- Skin Care net sales increased 9%, due to growth in every geographic region.
- Makeup net sales increased 4%, primarily benefiting from growth in the Company's travel retail business as well as strong double-digit growth in Latin America and Korea.
- Fragrance net sales grew 1%. Net sales from the Company's luxury brands increased mid-single digits, reflecting growth across all geographic regions, partially offset by a decline from Estée Lauder.
- Hair Care net sales decreased 4%, primarily driven by Aveda reflecting softness in the Company's North America salon channel.
- Given the Company's fiscal 2024 third quarter results and fourth quarter outlook, it remains confident in its renewed net sales and profit growth trajectory. For the full-year fiscal 2024 outlook, amid ongoing macroeconomic headwinds, including continued softness in overall prestige beauty in mainland China, and geopolitical volatility in some areas around the world, the Company is reducing its organic net sales outlook range and both increasing and tightening its adjusted diluted net earnings per common share range, partially offset by an expected unfavorable impact from foreign currency translation. With these revisions, the Company is maintaining its adjusted full-year operating margin outlook.
- Co issues downside guidance for Q4, sees EPS of $0.18-0.28, excluding non-recurring items, vs. $0.75 FactSet Consensus. Reported net sales to increase between 5% and 9% versus prior-year period.
- Co issues downside guidance for FY24, sees EPS of $2.14-2.24, excluding non-recurring items, vs. $2.25 FactSet Consensus; sees FY24 reported revs down between 3% and 2%, which translates to ~$15.4-15.6 bln vs. $15.81 bln FactSet Consensus.