Net Sales Decrease 17% for The Estée Lauder Companies in Q2 Results

The Estée Lauder Companies Inc. reported net sales of $4.62 billion for its second quarter ended December 31, 2022. The figure represents a decline of 17% from $5.54 billion in the prior-year period, including negative impacts from foreign currency. 

 

Organic net sales fell 11%. In the fiscal 2023 second quarter, company officials said the evolution of the COVID-19 environment, including restrictions in mainland China and the rising number of COVID cases, led to stronger headwinds as the quarter progressed. As a result, tourism and product shipments to Hainan remained largely curtailed and traffic in brick-and-mortar in the rest of China was limited. These challenges were partially offset by broad-based strong organic net sales growth across developed and emerging markets globally. Organic net sales benefited from continued double-digit growth in fragrance as well as strong holiday offerings and performance during the 11.11 Global Shopping Festival.

 

“We delivered on our expectations for the second quarter of fiscal 2023, despite the incremental pressure of COVID-19 in China in December,” said CEO and President Fabrizio Freda. “Many developed and emerging markets around the world outperformed to realize our organic sales growth outlook and, given disciplined expense management and moderation of the stronger US dollar, we exceeded our adjusted diluted EPS outlook. Fragrance excelled globally, while Makeup prospered in a great number of markets, as our brands are realizing the promise of the category’s renaissance as usage occasions resume.”

 

The company reported net earnings of $0.39 billion, compared with net earnings of $1.09 billion in the prior-year period.