Q3 2024 Estee Lauder Companies Inc Earnings Call Transcript
Key Points
- The Estee Lauder Companies Inc (EL) reported a 6% increase in organic sales growth, exceeding profitability expectations and improving working capital.
- Gross margin improvements were driven by a favorable mix of skincare products and strategic pricing initiatives.
- Significant progress in reducing excess inventory and obsolescence, contributing to better financial health.
- Strong performance in Asia travel retail, with targeted inventory reductions meeting goals ahead of schedule, leading to resumed growth.
- Continued innovation and expansion, including new product launches and entry into new markets, are set to drive future growth.
- Lower-than-expected sales in Mainland China due to ongoing softness in the prestige beauty market and subdued consumer confidence.
- Shifts in advertising spending to the fourth quarter, which may impact short-term financial results.
- Geopolitical tensions and macroeconomic volatility continue to pose risks to global operations.
- Challenges in achieving targeted retail inventory levels across the entire product portfolio in Asia travel retail.
- Potential short-term volatility in retail sales due to actions by certain retailers aiming to increase profitability.
Good day, everyone, and welcome to the Estee Lauder Companies' Fiscal 2024 Third Quarter Conference Call. Today's call is being recorded and webcast.
(Operator Instructions)
For opening remarks and introductions, I'd like to turn the call over to Senior Vice President of Investor Relations, Ms. Rainey Mancini. Ma'am, you may begin.
©-
Hello. On today's call are Fabrizio Freda, President and Chief Executive Officer; and Tracey Travis, Executive Vice President and Chief Financial Officer. Since many of our results today contain forward-looking statements, let me refer you to our press release and our reports filed with the SEC, where you'll find factors that could cause actual results to differ materially from these forward-looking statements. To facilitate the discussion of our underlying business, the commentary on our financial results and expectations is before restructuring and other charges and adjustments disclosed in our press release.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
