Mon, Aug 19, 5:01 PM (148 days ago)
For the fiscal year ended June 30, 2024, The Estée Lauder Companies Inc. reported net sales of $15,608 million, a decline of 2% from $15,910 million in 2023, primarily driven by decreased sales in skin care, makeup, and hair care categories. Operating income dropped significantly to $970 million from $1,509 million, reflecting a 36% decrease, attributed to restructuring charges, goodwill impairment of $291 million, and other intangible asset impairments totaling $180 million. The company’s net earnings fell 61% to $390 million, or $1.08 per diluted share, from $1,006 million, or $2.79 per share in the prior year. The company is undergoing a Profit Recovery and Growth Plan, which includes a restructuring program aimed at reducing its workforce by 1,800 to 3,000 positions, estimated to incur charges between $500 million and $700 million. Future outlook remains cautious due to ongoing challenges in the prestige beauty market, particularly in Asia, and rising inflation. The company maintains a strong liquidity position with $3,395 million in cash and cash equivalents as of June 30, 2024. Key risks include competitive pressures, economic downturns, and potential impacts from geopolitical tensions.