Q1 2024 Earnings Summary
Reported on Jan 4, 2025 (Before Market Open)
Pre-Earnings Price$128.87Last close (Oct 31, 2023)
Post-Earnings Price$109.28Open (Nov 1, 2023)
Price Change
$-19.59(-15.20%)
- Estée Lauder plans to rebuild profit margins through an $800 million to $1 billion profit recovery plan over the next two fiscal years, focusing on optimizing mix, maximizing value, leveraging investments, and unlocking cost efficiencies. The company is confident in achieving previous profit levels even if travel retail does not return to prior levels. , ,
- Strong underlying consumer demand with retail sales growing mid to high single digits globally calendar year-to-date, showing the strength of its brands and products. The company expects to ship more towards these positive retail trends, enhancing future growth. ,
- In Mainland China, Estée Lauder is building market share in the prestige beauty segment, with solid demand and no significant trade-down to mass-market brands, despite slower overall market growth.
- The recovery of Estée Lauder's profit margins is challenged by lower gross margins and higher costs compared to fiscal 2019, despite previous cost-saving programs not fully delivering anticipated savings.
- The company is experiencing a slower-than-expected recovery in Asia travel retail, with management not counting on travel retail to return to prior levels, impacting future profitability.
- Growth in Mainland China's beauty market slowed to 2% in the first quarter, lower than Estée Lauder's expectations, leading to adjustments in their projections for the year.