Estee Lauder Slashes FY23 Earnings Outlook – Update

While reporting financial results for the second quarter on Thursday, Estee Lauder Cos., Inc. (EL) slashed its earnings and adjusted earnings guidance for the full-year 2023 and provided outlook for the third quarter, well below estimates.

For the third quarter, the company expects earnings in a range of $0.32 to $0.43 per share and adjusted earnings in a range of $0.37 to $0.47 per share on reported net sales decline of 14 to 12 percent, with organic net sales decline of 10 to 8 percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $1.77 per share on a revenue decline of 1.5 percent to $4.18 billion for the quarter. Analysts’ estimates typically exclude special items.

Looking ahead to fiscal 2023, the company now projects earnings in a range of $4.25 to $4.44 per share and adjusted earnings in a range of $4.87 to $5.02 per share on reported net sales decline of 7 to 5 percent, with organic net sales between down 2 percent and flat.

Previously, the company expected earnings in a range of $7.04 to $7.26 per share and adjusted earnings in a range of $7.23 to $7.38 per share on reported net sales decline of 8 to 6 percent, with organic net sales between flat and growth of 2 percent.

The Street is looking for earnings of $5.35 per share on a sales decline of 5.7 percent to $16.73 billion for the year.

Separately, the company announced a quarterly dividend on the Company’s Class A and Class B Common Stock of $0.66 per share, payable on March 15, 2023 to stockholders of record at the close of business on February 28, 2023.

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