NYSE$EL

Estee Lauder Companies Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Net sales decreased and diluted loss per share was reported, but adjusted diluted EPS showed a decrease in constant currency, with the company observing growth in online sales and recovery in mainland China.

The Estée Lauder Companies reported a decrease in net sales and a net loss for the third quarter of fiscal 2020, impacted by COVID-19 related retail store closures. However, the company saw strong growth in online sales and a recovery in mainland China, while also implementing cost control measures and enhancing liquidity.

  • Net sales decreased by 11% to $3.35 billion, or 9% excluding currency translation impacts.
  • The company reported a net loss of $(6) million, with a diluted loss per share of $(.02).
  • Adjusted diluted EPS fell 45% to $.86, excluding currency translation and other items.
  • Global online sales rose strong double-digits, and sales in mainland China and global travel retail increased.

Headline financials

Total Revenue

$3.35B

Previous: $3.74B-10.7%
EPS (adj)

$0.86

Previous: $1.28-32.8%
Capital Expenditures

-$468M

Previous: -$441M-6.1%
Free Cash Flow

-$472M

Previous: $116M-506.9%
Net Income

-$4M

Previous: $557M-100.7%
Operating Income

$109M

Previous: $674M-83.8%
Gross Profit

$2.51B

Previous: $2.93B-14.2%
Cash & Equivalents

$4.88B

Previous: $2.9B+68.0%
Total Assets

$18.4B

Previous: $12.9B+42.0%
Stock-Based Comp

$71M

Previous: $70M+1.4%

Revenue & EPS history

Estee Lauder · Revenue · Quarterly

$3.35B

Q3 2020-10.7%vs Q3 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Estee Lauder · $3.55B total across 4 segments · Q3 2020

  • Skin Care
    $1.8B
  • Makeup
    $946M
  • Fragrance
    $434M
  • Hair Care
    $371M

Forward guidance

Due to 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 2020 fourth quarter and full year.

Tailwinds

  • Strong consumer demand for high-quality products remains intact despite temporary challenges related to COVID-19.
  • The Company expects to continue to build global share, even in a declining market.
  • Actions to control costs during this very volatile moment are expected to help it emerge strongly when the global recovery begins.
  • Maintaining the flexibility to make strategic investments in the areas of greatest opportunity.
  • Stands ready to facilitate the recovery in fiscal 2021 as soon as the market dynamics support it.

Headwinds

  • The majority of retail stores will remain closed for most of the fiscal 2020 fourth quarter.
  • Traffic will rebuild gradually when stores reopen around the world.
  • Global prestige beauty to continue to be adversely impacted during that period.
  • Some retail locations in certain markets may not reopen.
  • Likely to be lingering adverse global economic and social impacts.

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 Q3 2020

Historical avgQ3 2020

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro