Estee Lauder, a leader in prestige beauty, reported a challenging quarter with net sales declining across all product categories and regions. For the three months ended September 30, 2024, net sales decreased by 4% to $3,361 million from $3,518 million in the same period last year. The decline was primarily driven by a decrease in skin care sales, which fell by 7% year-on-year. Operating income turned into a loss of $121 million compared to a profit of $98 million in the previous year, significantly impacted by restructuring charges and talcum litigation settlement agreements. The Americas, Europe, the Middle East & Africa, and Asia/Pacific regions all experienced sales declines, with Asia/Pacific being the hardest hit with an 11% drop, largely due to weakened consumer sentiment in mainland...Show More

Estee Lauder, a leader in prestige beauty, reported a challenging quarter with net sales declining across all product categories and regions. For the three months ended September 30, 2024, net sales decreased by 4% to $3,361 million from $3,518 million in the same period last year. The decline was primarily driven by a decrease in skin care sales, which fell by 7% year-on-year. Operating income turned into a loss of $121 million compared to a profit of $98 million in the previous year, significantly impacted by restructuring charges and talcum litigation settlement agreements. The Americas, Europe, the Middle East & Africa, and Asia/Pacific regions all experienced sales declines, with Asia/Pacific being the hardest hit with an 11% drop, largely due to weakened consumer sentiment in mainland China and Hong Kong SAR. Estee Lauder's business development faced headwinds, with net sales decreases in skin care, makeup, fragrance, and hair care. The company identified and corrected misclassifications of net sales and operating income between product categories for the quarter ended September 30, 2023. Despite the downturn, Estee Lauder continues to innovate, launching new products and expanding consumer reach, particularly through digital and social media channels. Looking to the future, Estee Lauder is cautiously optimistic about medium- to long-term growth opportunities, especially with new economic stimulus measures in China. However, the company expects continued volatility and uncertainty, including inventory pressures in Asia travel retail and a slowdown in prestige beauty growth in North America. Estee Lauder's long-term strategy includes numerous initiatives across geographic regions, product categories, and distribution channels to drive sales, improve cost efficiencies, and leverage strengths for sustainable growth. The company also launched the Profit Recovery and Growth Plan, aiming to rebuild profit margins and accelerate sales growth through restructuring and cost-saving measures.