Estee Lauder Posts 3Q Loss, Sales Fall

By Maitane Sardon

Estee Lauder Cos. said Friday sales for its third quarter fell amid retail store closures prompted by coronavirus pandemic lockdowns.

The New York-based cosmetics company reported a loss of $6 million, or 2 cents a share, compared with earnings of $555 million, or $1.51 a share, in the comparable quarter a year ago.

The company reported adjusted earnings of 86 cents a share. Analysts polled by FactSet were expecting 74 cents a share on an adjusted basis.

Sales fell 11% to $3.3 billion. Analysts had expected $3 billion of revenue in the quarter.

Sales in the company's Americas segment fell 23% year-over-year to $892 million. Sales in its Asia Pacific region fell 4% to $928 million.

Estee Lauder said many retail stores in northern Asia have been reopening in recent weeks and that online sales have accelerated globally, but retail stores in southern Asia, the Americas and Europe, the Middle East and Africa are still closed.

The company withdrew its financial guidance for the year in March and said earlier this month it has taken a number of measures in light of the coronavirus pandemic. It has suspended its quarterly dividend and borrowed the full amount under its $1.5 billion revolving credit facility.

Starting today through Oct. 30, Estee Lauder's Executive Chairman William Lauder and Chief Executive Fabrizio Freda will have their salaries halved, the executive leadership team will cut their salaries by 30% and other members of management will cut their salaries by 10% to 20%.

Write to Maitane Sardon at [e-mail]

(END) Dow Jones Newswires

May 01, 2020 07:24 ET (11:24 GMT)

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