Estée Lauder beats on top and bottom lines
The New York–based Estée Lauder (EL) reported results for the third quarter, which ended on March 2018, this morning. The cosmetics giant cruised ahead of top- and bottom-line expectations for the quarter.
Its total sales increased 17.8% YoY (year-over-year) to $3.37 billion, beating Thomson Reuters I/B/E/S Estimates by $125 million.
“Among our multiple engines of growth, travel retail, online and Asia again were standouts, and we experienced strong momentum in other high growth channels and markets. Our performance this quarter reflected robust global demand across our portfolio, with virtually all our brands posting sales growth,” said Fabrizio Freda, president and CEO.
Adjusted earnings per share expanded 28.6% YoY to $1.17, 10 cents more than consensus expectations. This was the fifteenth consecutive earnings beat for the company.
Estée Lauder also issued an optimistic outlook for fiscal 2018 earnings per share. Management now expects adjusted earnings of $4.38 to $4.42 per share, versus analyst earnings expectations of $4.37 per share.
Estée Lauder’s stock is falling despite the beat
However, despite better-than-expected results, Estée Lauder’s stock price is falling today. The stock was down 7% at 1:30 PM.
Investors seem to be unhappy with the stagnant US sales, which stood flat during the quarter while Asia-Pacific reported 38% growth. Falling retail traffic in US brick-and-mortar stores has been behind the poor showing in US sales.