Summary by Futu AI
On February 5, 2024, Estee Lauder Companies Inc. released its financial results for the fiscal quarter ending December 31, 2023. The report revealed a 7% decrease in net sales to $4.28 billion from the previous year's $4.62 billion, with organic net sales dropping by 8%. The decline was attributed to challenges in Asia travel retail and a softening prestige beauty market in mainland China. Net earnings fell to $313 million from $394 million, and diluted earnings per share (EPS) declined from $1.09 to $0.87. The company's effective tax rate increased to 37.6% due to changes in the geographical mix of earnings and the impact of share-based compensation. Estee Lauder also announced a two-year restructuring program as part of its Profit Recovery Plan, aiming to reduce global positions by 3-5% and expecting to incur charges of $500 million to $700 million before taxes. The restructuring is projected to yield annual gross benefits of $350 million to $500 million, with a portion reinvested in consumer-facing activities. The company's analysis is preliminary and subject to change, with further details to be announced upon finalization of initiatives.