The Estee Lauder Companies Inc. (NYSE: EL) reported fourth-quarter fiscal 2024 results, wherein the top and bottom lines increased year over year and beat the respective Zacks Consensus Estimate even amid a tough landscape.
For fiscal 2025, management expects continued sluggishness in the prestige beauty segment in China, mainly due to ongoing weak consumer sentiment. In other areas of the business, the company plans to deliver improved performance across both developed and emerging markets.
Quarter in Detail
The company posted adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 25 cents. The bottom line increased significantly from earnings of 7 cents reported in the year-ago quarter. Adjusted EPS was 67 cents at constant currency or cc.
The Estee Lauder Companies Inc. Price, Consensus and EPS Surprise
The Estee Lauder Companies Inc. price-consensus-eps-surprise-chart | The Estee Lauder Companies Inc. Quote
Net sales of $3,871 million surpassed the Zacks Consensus Estimate of $3,833 million. The top line advanced 7% year over year despite sluggishness in core business areas, especially mainland China, Asia travel retail and North America.
Organic net sales rose 8%, courtesy of increases in all product categories, led by Skin Care, which was backed by EL's global travel retail business. The growth in organic net sales also shows strength across markets in the EMEA, offset by declines in the Americas and Asia/Pacific.
The gross profit came in at $2,778 million, up 14% year over year. The gross margin came in at 71.8%, up from 67.8% reported in the year-ago quarter.
The adjusted operating income came in at $349 million, up significantly from $71 million reported in the year-ago period. The operating income margin soared to around 9% from nearly 2% reported in the year-ago quarter.
Product-Based Segment Results
Skin Care's sales were up 13% year over year to $2,035 million. Makeup revenues remained flat year over year at $1,105 million. In the Fragrance category, revenues of $539 million dipped 1% from the year-ago quarter's figure. Hair Care sales totaled $165 million, up 1% year over year.
Regional Results
Sales in the Americas fell 5% year over year ...
