The Estee Lauder Companies has announced its results for the first quarter of fiscal 2024. The U.S. prestige beauty giant reported net sales of $3.52 billion for the three months ended September 30, 2023, down 10 percent from the prior-year period.
Net income was down significantly to $31 million from $489 million a year ago. Diluted net earnings per share were $0.09 compared to $1.35 last year.
By category, Skin Care was the hardest hit, with sales falling 22 percent on a reported basis. Hair care sales fell 6 percent, while makeup was up 1 percent and fragrance climbed a more respectable 5 percent.
The company has revised its full-year outlook accordingly and now expects net sales to be between a 2 percent decline and a 1 percent increase over the prior year.
Fabrizio Freda, President and Chief Executive Officer, said, “While we had a better-than-expected first quarter, we are lowering our outlook for fiscal year 2024 in light of increasing external headwinds, namely from slower growth in the overall prestige beauty category in Asia travel retail and mainland China, which is currently being confirmed in the pre-sale phase of the 11.11 Shopping Festival, and the risks of business disruptions in Israel and other parts of the Middle East. We are accelerating and expanding our profit recovery plan, which will benefit fiscal years 2025 and 2026, to realize our ambitions of restoring profitability in fiscal year 2024, despite the increased pressure on the business from external headwinds.”
