Estée Lauder drop one guidance more weak than expected for 2024 and the stock, after recording a 7% decline in the pre-market, it opened at 157,04 dollars (-3,1%) at the Nyse, down by -18,92% in the last 3 months and down by -40,70% in the last 12 months, marking one of the worst performance of the S&P 500.
The American cosmetics group published a better-than-expected quarterly report, but lowered its guidance for the current quarter and for the full fiscal year 2024, disappointing analysts' expectations.
Estée Lauder: counts above expectations but disappointing guidance
Estée Lauder Companies filed its fiscal fourth quarter with a turnover net of $15,91 billion, a 10% decrease from $17,74 billion a year earlier. The sales Organic net sales decreased 6%, driven primarily by Asian travel retail in Hainan and Korea, partially offset by growth in nearly all markets in both Asia/Pacific and Europe, Middle East and Africa (EMEA).
Also decliningNet income of $1,01 billion, compared to $2,39 billion a year earlier. Net income per share was $2,79, compared to $6,55 in 2022. Adjusted net income per share was $3,46, down 49% in constant currency.
Estée Lauder Cos' full-year forecast fell short of Wall Street estimates as the company continues to struggle to catch up in Asia, despite fourth quarter results have been better than expected. The global beauty giant, which acquired Tom Ford last year, has predicted an increase in prices net sales between 5 and 7% compared to analysts' estimate of an 8,8% increase, according to data from Refinitiv. It also estimates that adjusted earnings per share will be between $3,50 and $3,75, versus average analyst expectations of $4,83.
The words of CEO Freda
“We returned to organic sales growth in the fourth quarter, confirming our forecasts – commented the CEO Fabrizio Freda -. The momentum continued in EMEA and Latin American markets, and accelerated strongly in Asia/Pacific, led by mainland China and Hong Kong SAR.
“For fiscal 2024, we expect to return to organic sales growth and deliver sequentially improving margin throughout the year, leveraging the strong equity and desirability of our brands,” Freda continued. We are focused on building momentum in burgeoning markets and accelerating growth in North America. In Asia travel retail, we are taking actions to capture demand from returning individual travelers and continuing to destock in trade as we navigate the current market headwinds.”
