Estée Lauder (EL) 2021 Q3 Earnings Report

The history of Estée Lauder Companies Inc (NYSE:EL) dates back to 1946 when Estée Lauder and her husband Joseph Lauder launched the brand with just a handful of skincare products. They initially sold the products to local beauty salons and hotels. Today, Estée Lauder is a leading cosmetic company selling hundreds of products under different brand names. Its portfolio ranges from skincare and makeup products to fragrance and hair care solutions.

The New York-based company recently announced mixed financial results for the third quarter. Estée Lauder reported earnings of $456 million, or $1.24 per share for the three months ended March 31, versus a loss of $6 million, or 2 cents per share in the comparable period of 2020. On an adjusted basis, the company earned $1.59 per share that surpassed the consensus forecast of $1.32 per share.

Revenue for the quarter came in at $3.86 billion, up 16 percent from $3.35 billion in the year-ago quarter. However, analysts on average were expecting Estée Lauder to post revenue of $3.94 billion. Estée Lauder shares fell nearly 8 percent in the mid-day trading Monday on lower-than-expected quarterly revenue.

Speaking on the results, CEO Fabrizio Freda said in a statement, “We exceeded our sales and earnings expectations, even as several markets experienced increasing pressure from COVID-19 throughout the quarter. Our growth engines of Skin Care and Fragrance were incredibly powerful. Sales rose in every region, led by double-digit growth in Asia/Pacific, where many markets contributed and sales growth in mainland China accelerated.”

Estée Lauder also issued its financial outlook for fiscal 2021. The company is anticipating adjusted earnings in the range of $6.05 per share to $6.15 per share and revenue growth of 11 to 12 percent for the full year.