The American group did better than expected in the third quarter of 2023-2024, which ended in March. But despite a recovery in Asia, it expects a downturn in both sales and results for the year.
Estée Lauder turns a smile into a grimace for its investors.
On May 1, 2024, the American cosmetics group unveiled its third-quarter results (ending March 2024), which exceeded analysts’ forecasts.
At the same time, however, it announced that sales would be down for the full year, despite its (partial) rebound on the Asian market. This is the ninth time in a row that the company has revised its forecasts sharply downwards.
In the second quarter of 2023-24, Estée Lauder had explained the 10% drop in sales by “a slower-than-expected recovery in Asia, and especially in China”.
Falling annual sales and profits
This time, due to “macro-economic headwinds” and “persistent softness” in luxury cosmetics in mainland China, the group anticipates a decline of between 2% and 3% in annual sales and, for the same period, a fall of between 33% and 36% in earnings per share excluding exceptional items and at constant exchange rates…
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Featured Photo: © Estée Lauder
