Estée Lauder Q3 2024 – 5% Net Sales Growth

The Estée Lauder Companies Inc. has released its fiscal 2024 third-quarter results, revealing a 5% increase in net sales to $3.94 billion compared to $3.75 billion in the prior-year period. Organic net sales saw a 6% growth primarily driven by double-digit growth in Europe, the Middle East & Africa ("EMEA"), fueled by stronger sales in Asia travel retail. This growth in Asia travel retail was attributed to higher shipments reflecting significant sequential improvement in retail sales trends.

The company reported a significant increase in net earnings to $330 million, compared with $156 million in the prior-year period, with diluted net earnings per common share increasing to $.91 from $.43. Excluding restructuring and other charges and adjustments, adjusted diluted net earnings per common share increased to $.97.

Operating income also saw a substantial increase, rising 79% to $531 million from $297 million in the prior-year period. The adjusted operating income in constant currency increased 83%, primarily due to higher net sales and lower cost of sales.

In terms of product categories, skin care net sales increased by 9%, driven by growth in every geographic region, with double-digit growth in EMEA fueled by stronger sales in Asia travel retail. Makeup net sales increased by 4%, primarily benefiting from growth in the company’s travel retail business and strong double-digit growth in Latin America and Korea. Fragrance net sales grew by 1%, with the company’s luxury brands experiencing mid-single-digit growth across all geographic regions.

In geographic terms, net sales in the Americas increased by 1%, with strong double-digit growth in Latin America and flat growth in North America. Net sales in Europe, the Middle East & Africa increased by 12%, primarily due to the company’s travel retail business and double-digit growth in skin care and makeup.

The company's President and Chief Executive Officer, Fabrizio Freda, expressed confidence that the second half of fiscal 2024 will prove to be an inflection point for the company's performance, expecting accelerating momentum in organic sales growth in the fourth quarter.

Today the company's shares have moved -9.5% to a price of $132.78. For more information, read the company's full 8-K submission here.

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