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Estée Lauder earned about 39 cents per share last quarter, comfortably beating the 32 cents analysts expected. Sales grew 6 percent to $3.62 billion as the company finally saw growth across every geographic region. This is a significant turn for a business that has struggled for years with falling demand in China and too much unsold product sitting in Asian duty-free shops.
Management also raised its outlook for operating margins, which measures how much profit the company keeps from every dollar of sales after paying for things like marketing and manufacturing. The company now expects that margin to reach between 12.7 percent and 13.5 percent next year. The stock rose about 16 percent on the news, as the results suggest the company's plan to cut costs and move its supply chain closer to Asian customers is starting to work.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Estée Lauder has launched a research partnership with the University of Leeds to study color science and how people perceive their own skin tones. The goal is to solve a common frustration in the beauty industry by making it easier for customers to find the right shades for products like foundation and concealer. While this is a small research step, it is part of the company's effort to use technology to keep its high-end brands competitive. For a business trying to win back customers in a crowded market, better matching tools could help reduce product returns and improve digital sales.
Source: Business Wire
The company will share its full-year results on August 19. This will be an important check on the recovery plan aimed at cutting costs and fixing issues in the Asian market. Management will also provide a look at what they expect for the coming year.
Source: Business Wire
The company is launching a new fragrance named Glimmer to attract younger customers. While a single product launch rarely changes the outlook for a company this size, it shows the ongoing effort to refresh the brand lineup. The campaign features actress Hailee Steinfeld as the face of the brand.
Source: Business Wire
A new filing shows changes to the leadership team or the board of directors. This comes as the company works through a multi-year plan to fix its supply chain and return to growth. Leadership stability is a key factor as they try to turn around sales in China and clear out unsold inventory in Asia.
Source: 8-K filing
The company has a perfect record of beating analyst profit targets over the last two years, which suggests management is very good at under-promising and over-delivering.
| Expectation | |
|---|---|
| EPS | $0.32 |
| Revenue | $3.55B |
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