Estée Lauder 4Q Profit, Revenue Fall on Macroeconomic Challenges

By Connor Hart

Estée Lauder Cos. on Thursday posted lower net income and revenue in its fourth quarter, as unfavorable international conditions cut into the company's top and bottom lines.

The negative effects of increased Covid-19 cases and restrictions in China and the company's suspended commercial activities in Russia and Ukraine were partially offset by improved foot traffic in brick-and-mortar stores in the Americas, the company said.

The New York-based cosmetics giant said net income fell to $50 million, or 14 cents a share, compared with $1 billion, or $2.76 a share, in the previous year.

Stripping out one-time costs, the company posted adjusted earnings of 42 a share. Analysts polled by FactSet were expecting adjusted per-share earnings of 32 cents.

Revenue for the quarter ended June 30 fell 10%, to $3.56 billion, but came in above analyst estimates of $3.4 billion, according to FactSet.

Organic net sales, which strips out currency swings as well as acquisitions of divestitures, fell 8%, the company said.

The Covid-19 pandemic continued to disrupt the company's operations, as supply chain snarls affected inventory levels and logistics and outbreaks in China hurt retail traffic and travel and distribution capabilities, the company said.

The company on Thursday said it would pay a quarterly dividend of 60 cents a share to Class A and Class B shareholders on Sept. 15.

Earlier this month, The Wall Street Journal reported that Estée Lauder was in talks to buy luxury fashion brand Tom Ford. The company is best known for its menswear, though it also sells womenswear and accessories as well as a fast-growing, high-end line of cosmetics and fragrances.

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(END) Dow Jones Newswires

August 18, 2022 07:37 ET (11:37 GMT)

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