Estee Lauder’s sales climb by 5% in the fiscal second quarter

Written by: Wajeeh Khan
February 5, 2021
  • Estee Lauder’s sales climb by 5% in the fiscal second quarter.
  • The American company reports £635.43 million of net income.
  • Estee Lauder expects an annualised growth of 13% in its Q3 sales.

The Estee Lauder Companies Inc. (NYSE: EL) published its earnings report for the fiscal second quarter on Friday that came in better than what analysts had anticipated. The company, however, warned that the COVID-19 restrictions were likely to weigh on its financial performance in the third quarter.  

Estee Lauder closed the regular session more than 1% down in the stock market on Friday. The stock performed largely upbeat in the stock market last year with an annual gain of roughly 30%. At the time of writing, Estee Lauder is valued at almost £72 billion and has a price to earnings ratio of 165.80.

Estee Lauder’s Q2 financial results versus analysts’ estimates

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For the quarter that concluded on 31st December, Estee Lauder reported £635.43 million of net income that translates to £1.73 per share. In the same quarter last year, its net income was capped at a much lower £405.42 million or £1.11 per share.

Adjusted for one-time items, the American multinational earned £1.86 per share in the recent quarter. Estee Lauder valued its sales in Q2 at £3.53 billion that translates to a 5% annualised growth. In the prior quarter (Q1), its sales had slid 9% due to the ongoing Coronavirus pandemic.

According to FactSet, experts had forecast the company to post £3.27 billion of sales in the second quarter. Their estimates for adjusted per-share earnings stood at a lower £1.23.

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Other prominent figures in Estee Lauder’s earnings report

Other prominent figures in Estee Lauder’s financial report on Friday include a 28% year over year increase in skin car sales. On the contrary, makeup sales slid 25% in Q2. As per the New York-based company, its fragrance sales jumped 6% in the recent quarter, and hair care sales came in 5% lower than last year.

Skincare and fragrance sales, Estee Lauder added, topped the FactSet Consensus in the second quarter. Makeup and hair care sales, on the other hand, were lower than expected. In separate news from the United States, Peloton also published its quarterly financial results earlier this week.

For the fiscal third quarter, the NYSE-listed firm now forecasts its adjusted per-share earnings to fall in the range of 80 pence to 87 pence. Estee Lauder expects an annualised growth of 13% in its third-quarter sales. In comparison, analysts are calling for £1.06 of adjusted earnings per share and a 15.3% sales growth in the third quarter.