NYSE$EL

Estee Lauder Companies Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

The company delivered outstanding results, capped by an exceptional fourth quarter.

The Estée Lauder Companies reported a strong Q4 2021 with net sales increasing by 62% compared to the prior-year period. Net income was $1.02 billion, and diluted earnings per share was $2.76.

  • Net sales grew in every category and region.
  • Results reflect comparisons with the prior-year period when most retail stores were closed due to COVID-19 restrictions.
  • There was improved foot traffic in countries where brick-and-mortar stores have reopened.
  • There was strong growth in travel retail, and continued online sales growth.

Headline financials

Total Revenue

$3.94B

Previous: $2.43B+62.0%
EPS (adj)

$0.78

Previous: -$0.53+247.2%
Capital Expenditures

$251M

Previous: $155M+61.9%
Free Cash Flow

$603M

Previous: $180M+235.0%
Net Income

$1.02B

Previous: -$459M+321.1%
Operating Income

$234M

Previous: -$543M+143.1%
Gross Profit

$2.95B

Previous: $1.66B+77.4%
Cash & Equivalents

$4.96B

Previous: $5.02B-1.3%
Total Assets

$22B

Previous: $17.8B+23.6%
Stock-Based Comp

$72M

Previous: $3M+2300.0%

Revenue & EPS history

Estee Lauder · Revenue · Quarterly

$3.94B

Q4 2021+62%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Estee Lauder · $3.94B total across 5 segments · Q4 2021

  • Skin Care
    $2.37B+47.1%
  • Makeup
    $960M+76.1%
  • Fragrance
    $448M+162.0%
  • Hair Care
    $153M+56.1%
  • Other
    $8M+100.0%

Forward guidance

The Company expects to invest in areas to support the recovery, including advertising, online, research and development and supply chain, to both drive growth in areas of opportunity and help nurture emerging trends in the rest of the business.

Tailwinds

  • A recovery of the makeup and hair care categories as countries reduce COVID-19 restrictions.
  • Growth in developed markets in the west and in brick-and-mortar retail.
  • Targeted new distribution throughout the year to retailers that provide broader consumer reach.
  • A gradual resumption of international travel beginning later in the fiscal year.
  • Benefit from a nearly full year incremental impact of DECIEM in net sales and operating results.

Headwinds

  • The Company is mindful of ongoing risks related to the COVID-19 pandemic
  • Risks related to social, economic and political matters, including restructurings and bankruptcies in the retail industry
  • Geopolitical tensions
  • Regulatory developments
  • Changes in consumer preferences that affect consumer spending in certain countries, channels and travel corridors.

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 Q4 2021

Historical avgQ4 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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