Estée Lauder Cos. shares fell after the company reported another lacklustre quarter and slashed its outlook for the rest of its fiscal year, citing continued sluggishness in its China business and incipient weakness in the US.
The beauty company said on Wednesday that it expects earnings per share in the current fiscal year of $5.01 to $5.21 versus an earlier target of $7.11 to $7.33. Estée Lauder sees net sales decreasing between 6 percent to 8 percent in the current fiscal year versus the year-ago period. That includes an expected decrease in net sales in the current quarter between 17 percent to 19 percent.
Estée Lauder said sales in its Americas division dipped 3% in the three months ended Sept. 30. The company attributed the decline in part to retailers in the US starting to tighten inventory as well as inflation and recession concerns curtailing demand.
Executives told analysts during an earnings presentation on Wednesday that they would continue to raise prices to offset most of the impact from inflation. They said they are mulling the possibility of an even bigger price hike in January or February than they had been planning.
Estee Lauder
More from NEWS
CARTIER opens newly renovated and redesigned flagship store in Miami at Miami Design District
CARTIER has reopened its newly expanded regional flagship in the Miami Design District, unveiling a space that feels less like …
Austrian luxury resort brand LANSERHOF secures $110 million investment
Austrian resort brand Lanserhof has announced a €95 million ($110 million) investment as it prepares to ramp up expansion. The …
MONCLER Group revenues fall 1 percent in the third quarter
Revenues at Moncler fell 1% at constant exchange rates in the third quarter, hit by weak tourist demand in Europe …
