Estee Lauder Falls on FQ4 Results, Guidance

Estee Lauder (EL:US) shares sank nearly 4% on Friday after the company reported FQ4 results and offered guidance. While results and guidance were solid in general, investors were likely hoping for a quicker rebound in Asia.

In the fourth fiscal quarter, Estee Lauder reported adjusted earnings per share of $0.07, better than the estimated loss per share of $0.04 according to the consensus. 

The company's adjusted net sales for the quarter reached $3.61 billion, marking a 1% year-on-year increase and ahead of the estimated net sales figure of $3.48 billion.

For the first quarter, Estee Lauder foresees a loss per share ranging from $0.23 to $0.34. Organic net sales are projected to experience a decline between 10% to 12%.

The company expects full-year EPS in the range of $3.43 to $3.70, which compares to the analyst consensus of $3.36. Net sales are anticipated to rise by 5% to 7%, with organic net sales growth in the range of 6% to 8%.

Estee Lauder anticipates a return to organic sales growth for the year 2024, with a focus on progressively recovering margins. The company acknowledges certain challenges, including the impact of the Asia travel retail segment. Despite these challenges, the company remains optimistic about its strategic positioning and market momentum.

Fabrizio Freda, President and Chief Executive Officer said, “We returned to organic sales growth in the fourth quarter, delivering our outlook. Momentum continued in the markets of EMEA and Latin America, and accelerated strongly in Asia/Pacific led by mainland China and Hong Kong SAR.”

Congressman Jonathan Jackson disclosed that he sold $15,000 - $50,000 worth of EL shares on June 07, when the stock closed at $181.26. Shares were offered below $160 apiece on Friday.