Estée Lauder Reports 9 Pct Net Sales Drop
The Estée Lauder Companies Inc. reported on Monday (Nov. 2) as part of its fiscal Q1 2021 earnings that net sales fell 9 percent on an as-reported and constant currency basis, according to a press release.
The net sales drop was fueled by certain temporary shop closings and decreased foot traffic in open shops due to the coronavirus, and was offset, in part, by formidable growth via the web.
The company reported that skin care net sales expanded throughout most regions, headed up by La Mer and Estée Lauder.
Net sales of Dr. Jart+, which the firm bought in December of last year, contributed roughly 6 percent to skin care net sales expansion.
However, Estée Lauder reported that hair care net sales were flat, showing a rise at Aveda that offset a fall at Bumble and bumble fueled by some temporary retail and salon closures during a portion of the quarter because of the coronavirus.
Net sales fell in makeup with decreases at all labels outside of Too Faced, which provided a modest rise. The company said that the impacts of the coronavirus affected makeup “disproportionately,” especially lip and foundation.
Estée Lauder reported that the effects of the coronavirus continue to create “significant disruption” in its operating environment, with impacts on customer preferences and retail traffic. The company said physical retail businesses have slowly reopened worldwide in the three months that concluded Sept. 30.
As for its overall results, Estée Lauder Companies reported adjusted diluted earnings per share (EPS) in constant currency of $1.44 on net sales of $3.56 billion. The results exceeded analyst expectations of 90 cents per share on revenues of $3.45 billion.
“We are pleased with the stronger-than-expected start to our fiscal year amid this difficult moment as the global community continues to confront COVID-19,” Estée Lauder President and Chief Executive Officer Fabrizio Freda said in the press release.