NYSE$EL

Estee Lauder Companies Inc · Q4 2024 earnings

Q4 2024 earnings · · Investor relations

Briefing

Net sales increased by 7% and adjusted diluted EPS increased, exceeding expectations for profitability.

Estée Lauder Companies reported a 7% increase in net sales for the fourth quarter of fiscal year 2024, with organic net sales up 8%. The company experienced growth across all product categories, led by Skin Care, and benefited from its global travel retail business. Adjusted diluted earnings per share increased to $0.64, up from $0.07 in the prior-year period.

  • Organic net sales increased by 8%, driven by growth across all product categories.
  • Skin Care led growth, with significant contributions from the global travel retail business.
  • The Americas net sales declined by 5%, impacted by distribution mix and a competitive environment.
  • Adjusted diluted net earnings per common share increased to $0.64, up from $0.07 in the prior-year period.

Headline financials

Total Revenue

$3.87B

Previous: $3.61B+7.3%
EPS (adj)

$0.64

Previous: $0.07+814.3%
Gross Margin

71.8%

No prior period
Operating Margin

-6.0%

No prior period
Adj. Operating Margin

9.0%

No prior period
Effective Tax Rate

-2.5%

No prior period
Adj. Effective Tax Rate

22.8%

No prior period
Capital Expenditures

-$217M

Previous: $351M-161.8%
Net Income

-$286M

Previous: -$32M-793.8%
Operating Income

-$233M

Previous: -$5M-4560.0%
Gross Profit

$2.76B

Previous: $2.45B+13.0%
Stock-Based Comp

$49M

Previous: $33M+48.5%

Revenue & EPS history

Estee Lauder · Revenue · Quarterly

$3.87B

Q4 2024+7.3%vs Q4 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Estee Lauder · $3.52B total across 5 segments · Q1 2024

  • Skin Care
    $1.64B-22.1%
  • Makeup
    $1.06B+1.0%
  • Fragrance
    $637M+4.9%
  • Hair Care
    $148M-6.3%
  • Other
    $32M+128.6%

Forward guidance

The Company expects global prestige beauty to grow 2%-3% in fiscal 2025. Reported and organic net sales are forecasted to decrease between 5% and 3% versus the prior-year period. Adjusted diluted net earnings per common share are expected to decrease between 89% and 17% and range between $.01 and $.09 on a constant currency basis.

Tailwinds

  • Targeted expanded consumer reach across geographies and distribution channels
  • Gradual improvement in mainland China and Asia travel retail in the second half of fiscal 2025
  • Full-year increase in net sales in North America driven in part by leveraging winning distribution channels, such as Amazon’s U.S. Premium Beauty store
  • The rest of the business is expected to accelerate growth, on average
  • Full-year adjusted operating margin of 11.0% to 11.5%, inclusive of PRGP benefits

Headwinds

  • Mainland China and Asia travel retail are generally expected to decline on a full-year basis
  • More tempered performance than the industry, mainly driven by its significant business in mainland China and Asia travel retail
  • Potential retailer destocking
  • Shift in traveler demographics and ongoing increase in spending on experiences impacting Asia travel retail
  • Adapting to channel shifts and the challenging dynamics of a strong competitive environment amidst the slowdown in growth in prestige beauty in North America

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 2024

Historical avgQ4 2024

-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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