NYSE$EL

Estee Lauder Companies Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Net sales increased and diluted EPS rose.

The Estée Lauder Companies Inc. reported a net sales increase of 5% and a diluted EPS increase of 56% for its second quarter ended December 31, 2020. The company's performance was fueled by Skin Care, Fragrance, Asia/Pacific, Travel Retail in Asia, and global Online, with double-digit sales growth from Estée Lauder and La Mer brands.

  • Net sales increased 5% and diluted EPS rose 56%.
  • Skin Care, Fragrance, Asia/Pacific, Travel Retail in Asia, and global Online fueled performance.
  • Double-digit sales growth from Estée Lauder and La Mer brands.
  • Successfully combined technology and data with beauty advisors to enhance online shopping experience.

Headline financials

Total Revenue

$4.85B

Previous: $4.62B+5.0%
EPS (adj)

$2.61

Previous: $2.11+23.7%
Capital Expenditures

-$250M

Previous: -$291M+14.1%
Free Cash Flow

$627M

Previous: $270M+132.2%
Net Income

$877M

Previous: $561M+56.3%
Operating Income

$1.06B

Previous: $261M+307.3%
Gross Profit

$3.77B

Previous: $3.58B+5.2%
Cash & Equivalents

$5.55B

Previous: $3.6B+54.2%
Total Assets

$19.6B

Previous: $17.9B+9.2%
Stock-Based Comp

$105M

Previous: $83M+26.5%

Revenue & EPS history

Estee Lauder · Revenue · Quarterly

$4.85B

Q2 2021+5%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Estee Lauder · $4.85B total across 5 segments · Q2 2021

  • Skin Care
    $2.82B
  • Makeup
    $1.25B
  • Fragrance
    $618M
  • Hair Care
    $154M
  • Other
    $15M

Forward guidance

The Company expects to maintain momentum and continue to deliver sequentially improving sales growth. As the global recovery from the COVID-19 pandemic progresses, the Company plans to accelerate its investment in attractive opportunities, including a recovery of categories that were most affected by the pandemic.

Tailwinds

  • Reported net sales are forecasted to increase between 13% and 14% versus the prior-year period.
  • Excluding the impact of currency, net sales are forecasted to increase between 10% and 11%.
  • Reported diluted net earnings per common share are projected to be between $.99 and $1.11.
  • Adjusted diluted earnings per common share are expected to increase between 26% and 38% on a constant currency basis.
  • The Company expects to take charges associated with previously approved restructuring and other activities.

Headwinds

  • Given the recent surge of COVID-19 infections globally and the uncertainty around the timing, speed and duration of the recovery from the adverse impacts of COVID-19, the Company is not providing specific sales and EPS guidance for the fiscal 2021 full year.
  • The Company will continue to pursue cost savings, but expects that some expenses will be returning in the coming months including in-store and office costs.
  • These costs will also reflect expenses to protect employees and consumers as they return to the Company’s facilities and retail locations.
  • The Company expects to invest in areas to support the recovery, including advertising, online and supply chain, to both drive growth in areas of opportunity and help nurture emerging trends in the rest of the business.
  • Currency exchange rates are volatile and difficult to predict.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-0.2%

Avg return

Earnings day

-1.3%

Avg return

5 days after

+0.0%

Avg return

30 days after

49%

33 / 67 earnings

Positive

+12.8%

Q4 2019

Best reaction

-23.6%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.8%+13.0%+16.1%
Q2 2026-19.2%-15.3%-22.5%
Q1 2026+0.3%-4.6%-3.4%
Q3 2025-1.8%-2.4%+11.6%
Q2 2025-16.1%-21.4%-13.6%
Q1 2025-23.6%-24.4%-17.2%
Q4 2024-4.2%-1.3%-7.3%
Q3 2024-8.0%-11.3%-15.9%
Q2 2024+9.0%+6.9%+8.4%
Q1 2024-11.2%-12.6%+2.4%
Q4 2023-6.9%-5.7%-3.9%
Q3 2023-18.0%-16.0%-23.2%
Q2 2023-4.0%-7.0%-9.8%
Q1 2023-6.3%-0.4%+15.6%
Q4 2022-1.2%-4.0%-13.4%
Q3 2022-1.3%-7.8%+1.4%
Q2 2022-1.8%-1.3%-10.5%
Q1 2022+4.7%+7.5%+2.9%
Q4 2021+3.5%+5.8%+0.3%
Q3 2021-3.7%-3.3%-3.2%
Q2 2021+10.9%+12.4%+15.7%
Q1 2021+2.3%+8.6%+11.7%
Q4 2020-2.6%+1.4%-0.1%
Q3 2020-1.1%-3.9%+11.9%
Q2 2020+3.8%+4.2%-4.7%
Q1 2020-3.5%-4.8%+1.1%
Q4 2019+12.8%+10.0%+7.1%
Q3 2019-0.9%-1.0%-6.3%
Q2 2019+10.3%+13.6%+14.1%
Q1 2019+8.2%+8.1%+8.7%
Q4 2018+0.5%-0.3%+2.7%
Q3 2018-7.5%-7.7%+2.4%
Q2 2018-0.2%+0.1%+4.5%
Q1 2018+7.5%+8.3%+11.6%
Q4 2017+8.3%+6.2%+11.6%
Q3 2017+5.0%+5.9%+9.9%
Q2 2017+3.9%+4.4%+3.8%
Q1 2017-7.8%-6.7%-12.1%
Q4 2016-3.9%-4.8%-7.8%
Q3 2016-4.1%
Q2 2016+3.0%
Q1 2016+7.9%
Q4 2015-5.6%
Q3 2015+4.6%
Q2 2015+9.6%
Q1 2015-6.3%
Q4 2014+1.2%
Q3 2014+2.6%
Q2 2014-3.5%
Q1 2014-2.0%
Q4 2013+3.3%
Q3 2013+3.5%
Q2 2013+3.7%
Q1 2013-2.6%
Q4 2012+10.8%
Q3 2012+0.2%
Q2 2012-0.1%
Q1 2012+2.4%
Q2 2011+4.0%
Q4 2009+4.0%
Q4 2011+4.0%
Q3 2011+5.7%
Q3 2010+5.7%
Q2 2010-0.6%
Q4 2010-0.9%
Q1 2011-0.9%
Q1 2010-0.9%

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