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EL · Estée Lauder Companies

50 filings

10-Q

EL 10-Q Quarterly Reports

Estée Lauder Companies - 50 quarterly reports

Filing record · 2016–202610-K1110-Q338-K126

EL filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 126 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jul ’18Jul ’18
  2. Restructuring8-K · Aug ’20Aug ’20
  3. Leadership change8-K · Jul ’22Jul ’22
  4. Restructuring8-K · Dec ’25Dec ’25
  1. 2027-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2026

    The Estée Lauder Companies Inc. reported net sales of $3.715 billion for the three months ended September 30, 2026, up 7% from $3.481 billion a year earlier (6% in constant currency). Operating income rose to $408 million from $169 million, and operating margin improved to 11.0% from 4.9%. Gross margin expanded to 75.7% from 73.4%, and operating expenses fell to 64.7% of net sales from 68.5%. Restructuring and other charges were $40 million, down from $89 million. Net earnings were $233 million, or $0.64 per diluted share, compared with $47 million, or $0.13, a year earlier. Management attributed the sales growth primarily to fragrance and skin care, with Mainland China and Asia/Pacific leading regional gains. The effective tax rate was 32.5% versus 56.9% in the prior-year quarter. Balance sheet and cash flow remained under pressure. Cash and cash equivalents declined to $3.198 billion from $3.498 billion at June 30, 2026, and net cash used for operating activities was $166 million, improved from $340 million. Total debt was $7.251 billion, and total debt as a percent of total capitalization was 64%, down from 66%. Management said tariffs are expected to adversely affect fiscal 2027 profitability and cash flows, and it continues to face litigation related to talc products, with 116 cases pending in U.S. state courts and additional derivative complaints filed. Subsequent to quarter end, the company acquired the remaining 51% of Forest Essentials for $160 million and expects a gain of approximately $94 million in the fiscal 2027 second quarter.

    Nov 2, 2026
  2. 2026-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2026

    The Estée Lauder Companies Inc. reported net sales of $3.71 billion for the three months ended March 31, 2026, up 5% from $3.55 billion a year earlier (2% in constant currency), while operating income fell to $249 million from $306 million. Net earnings were $89 million, or $0.24 per diluted share, compared with $159 million, or $0.44, in the prior-year quarter. Results were weighed down by $224 million of restructuring and other charges and an $84 million securities class action litigation settlement charge. On a non-GAAP basis, diluted earnings per share were $0.91, up 40% from $0.65. For the nine months ended March 31, 2026, net sales were $11.42 billion, up 5% (3% in constant currency), and net earnings were $298 million, or $0.82 per diluted share, versus a net loss of $587 million in the prior-year period, which included an $861 million goodwill and intangible impairment and a $159 million talcum litigation charge. Operating income was $819 million, and non-GAAP diluted EPS was $2.12, up 50%. Growth was led by fragrance, skin care and Mainland China, while the Americas was virtually flat for the nine months. The balance sheet shows cash of $3.13 billion and total debt of $7.31 billion, with total equity of $3.99 billion. Net cash from operations was $1.20 billion for the nine months, against $671 million a year earlier. The company raised its estimated restructuring charges to $1.5–1.7 billion (from $1.2–1.6 billion) and expanded its estimated net workforce reduction to 9,000–10,000 positions. It also disclosed that the One Big Beautiful Bill Act lifted its effective tax rate to 50.3% for the quarter, and that a $210 million securities class action loss contingency was recorded in accrued liabilities, with the $84 million charge in the income statement being net of estimated insurance recoveries.

    May 1, 2026
  3. 2026-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2025

    The Estée Lauder Companies Inc. reported net sales of $4,229 million for the three months ended December 31, 2025, up from $4,004 million a year earlier, with the filing stating a 6% reported increase (4% in constant currency). For the six months, net sales were $7,710 million versus $7,365 million, a 5% reported increase (3% in constant currency). Operating income was $401 million for the quarter compared with an operating loss of $(580) million in the prior-year quarter, which included a $861 million impairment of goodwill and other intangible assets. Net earnings were $162 million, or $.44 per diluted share, for the quarter, compared with a net loss of $(590) million, or $(1.64) per diluted share, a year earlier. For the six months, net earnings were $209 million, or $.57 per diluted share. Gross margin improved to 76.5% for the quarter from 76.1%, and operating expenses fell to 67.0% of net sales from 90.6%, reflecting the absence of the prior-year impairment and benefits from the Profit Recovery and Growth Plan (PRGP). The effective tax rate rose sharply to 51.40% for the quarter, which the filing attributes primarily to the loss before taxes in the prior-year period and the estimated unfavorable impact of the One Big Beautiful Bill Act. Restructuring and other charges were $207 million in the quarter, and the company estimates total Restructuring Program charges of $1,200 million to $1,600 million, with a net reduction of approximately 5,800 to 7,000 positions. Balance sheet and cash flow data show cash and cash equivalents of $3,082 million at December 31, 2025, and net cash from operating activities of $785 million for the six months, compared with $387 million a year earlier. Total debt was $7,322 million, and total debt as a percent of total capitalization was 64.5%. The company paid $255 million in dividends during the six months and declared $.35 per share in quarterly dividends. Management cites ongoing challenges in Western Europe, department store headwinds in the United States, and tariffs expected to adversely affect fiscal 2026 profitability and cash flows.

    Feb 5, 2026
  4. 2026-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2025

    The Estée Lauder Companies Inc. reported net sales of $3.48 billion for the three months ended September 30, 2025, up from $3.36 billion a year earlier, an increase of 4% as reported and 3% in constant currency. Gross profit rose to $2.55 billion from $2.43 billion, with gross margin at 73.4% versus 72.4%. Operating income was $169 million, compared with an operating loss of $121 million in the prior-year quarter, which included a $159 million talcum litigation settlement charge. Net earnings were $47 million, or $.13 per diluted share, versus a net loss of $156 million, or $(.43) per share. Excluding restructuring charges and the prior-year talcum charge, diluted earnings per share were $.32 compared with $.14 a year earlier, per the company's non-GAAP reconciliation. Cash flow remained negative in the quarter, with net cash used for operating activities of $340 million, compared with $670 million a year earlier. Cash and cash equivalents fell to $2.22 billion from $2.92 billion at June 30, 2025. Financing outflows included $150 million for payment of deferred consideration related to the TOM FORD acquisition and $127 million in dividends. Total equity was $3.89 billion, and the company declared a $.35 per share dividend on October 29, 2025. The company said it expects volatility to continue, citing weak travel retail conversion, challenges in Western Europe and department store headwinds in the United States, along with tariff uncertainty that could adversely affect fiscal 2026 profitability and cash flows. The Restructuring Program under the Profit Recovery and Growth Plan now estimates a net reduction of approximately 5,800 to 7,000 positions and total restructuring and other charges of $1.2 billion to $1.6 billion before taxes. The company expects annual target gross benefits of $800 million to $1 billion once fully implemented. Securities class action litigation was ongoing following a March 31, 2025 denial of the motion to dismiss, and cosmetic talcum cases pending rose to 91 from 84.

    Oct 30, 2025
  5. 2025-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2025

    The Estée Lauder Companies Inc. reported net sales of $3.55 billion for the three months ended March 31, 2025, down from $3.94 billion a year earlier, and net sales of $10.92 billion for the nine months, down from $11.74 billion. Reported net sales decreased 10% for the quarter, driven by volume declines of 9%, partially offset by pricing of 1%, with a 1% unfavorable currency impact. Skin care, makeup, and hair care declined in the quarter, with lower Asia travel retail, retailer destocking in North America, and softness in Asia/Pacific, particularly mainland China and Korea. Profitability was sharply lower on a reported basis. For the nine months, the company recorded an operating loss of $395 million, compared with operating income of $1.20 billion a year earlier, and a net loss attributable to the company of $587 million, or $(1.63) per diluted share. The decline reflects impairment charges of $861 million on goodwill and other intangible assets, principally TOM FORD and Too Faced trademarks, a $159 million talcum litigation settlement charge, and restructuring and other charges of $375 million. Gross margin improved to 75.0% in the quarter from 71.9%, and operating margin was 8.6% compared with 13.5% in the prior-year quarter. Diluted EPS for the quarter was $0.44, compared with $0.91 a year earlier. Liquidity remained substantial with cash and cash equivalents of $2.63 billion at March 31, 2025, against total debt of $7.30 billion. Operating cash flow was $671 million for the nine months, versus $1.47 billion a year earlier. Total equity fell to $4.35 billion from $5.31 billion. Management expanded its Profit Recovery and Growth Plan, now estimating restructuring charges of $1.2 billion to $1.6 billion and a net reduction of approximately 5,800 to 7,000 positions. Management said it does not anticipate a material impact on fiscal 2025 profitability from tariffs, but expects a high rate of tariffs to have a material adverse effect on fiscal 2026 profitability and cash flows.

    May 1, 2025
  6. 2025-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2024

    The Estée Lauder Companies Inc. reported a net loss attributable to the company of $590 million for the three months ended December 31, 2024, compared with net earnings of $313 million a year earlier, and a net loss of $746 million for the six months, versus earnings of $344 million. Net sales were $4.00 billion for the quarter, down from $4.28 billion, and $7.37 billion for the six months, down from $7.80 billion. The decline was driven by $861 million of goodwill and other intangible asset impairments, mainly a $773 million charge on the TOM FORD trademark and a $75 million charge on the Too Faced trademark, along with a $13 million Too Faced goodwill impairment. Reported net sales decreased 6% for both periods, with volume declines partly offset by pricing, and Asia/Pacific and Europe, the Middle East & Africa were the weakest regions. Restructuring charges rose sharply. The company expanded its Profit Recovery and Growth Plan on February 3, 2025, and now estimates a net reduction of approximately 5,800 to 7,000 positions and restructuring and other charges of $1.2 billion to $1.6 billion before taxes, with annual target gross benefits of $800 million to $1 billion. The company also recorded a $159 million charge for talcum litigation settlement agreements in the first quarter. Total equity fell to $4.17 billion from $5.31 billion at June 30, 2024, and total debt as a percent of total capitalization rose to 64% from 59%. Cash and cash equivalents declined to $2.59 billion, and operating cash flow for the six months was $387 million versus $937 million a year earlier. The company repaid a $500 million Senior Note at maturity and did not repurchase shares beyond tax-withholding purchases. As of January 28, 2025, the long-term debt rating was A with a negative watch from S&P and A2 with a negative outlook from Moody's.

    Feb 4, 2025
  7. 2025-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2024

    The Estée Lauder Companies Inc. reported net sales of $3,361 million for the three months ended September 30, 2024, down from $3,518 million a year earlier, a 4% decline (5% in constant currency). The company posted an operating loss of $121 million and a net loss attributable to The Estée Lauder Companies Inc. of $156 million, or $(0.43) per diluted share, compared with net earnings of $31 million, or $0.09 per diluted share, in the prior-year quarter. The results were driven by a $159 million charge for talcum litigation settlement agreements and $106 million of charges associated with restructuring and other activities. Excluding these items and the change in fair value of acquisition-related stock options, operating income rose 33% to $144 million and diluted EPS was $0.14 versus $0.11 in the prior year, per the company's non-GAAP reconciliation. The top-line weakness was broad-based, with lower net sales in all product categories and all regions. Skin care fell 7%, makeup 2%, fragrance 1% and hair care 6%. Asia/Pacific net sales declined 11%, driven by mainland China and Hong Kong SAR, and management cited worsened consumer sentiment in China and inventory pressure in Asia travel retail. Management expects continued volatility and inflationary pressure, and it cited ongoing competitive pressures in North America. Cash and cash equivalents fell to $2,350 million from $3,395 million at June 30, 2024, and net cash used for operating activities was $670 million in the quarter. The filing also details the Profit Recovery and Growth Plan, with expected restructuring and other charges of $500 million to $700 million, before taxes, and an estimated net reduction of 1,800 to 3,000 positions. The company disclosed 151 pending talc cases as of September 30, 2024, down from 273 at June 30, 2024, and an agreement to resolve over 200 pending matters and a process for future claims through 2029. Total debt as a percent of total capitalization was 61%, compared with 59% at June 30, 2024. The October 30, 2024 dividend declaration of $0.35 per share represents a reduction from the $0.66 per share quarterly dividend declared during the quarter.

    Oct 31, 2024
  8. 2024-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2024

    The Estée Lauder Companies Inc. reported net sales of $3.94 billion for the three months ended March 31, 2024, up from $3.75 billion a year earlier, driven primarily by higher net sales in its Asia travel retail business. For the nine months, net sales declined to $11.74 billion from $12.30 billion, reflecting lower Asia travel retail and mainland China sales. Reported net earnings attributable to the company were $330 million ($0.91 diluted EPS) for the quarter, compared with $156 million ($0.43) a year earlier, while nine-month net earnings attributable to the company were $674 million ($1.87 diluted EPS) versus $1.04 billion ($2.88) in the prior-year period. Operating income rose to $531 million for the quarter from $297 million, while nine-month operating income fell to $1.20 billion from $1.51 billion. The company launched a two-year restructuring program as part of a Profit Recovery Plan intended to rebuild profit margins in fiscal 2025 and 2026. It estimates a net reduction of approximately 1,800 to 3,000 positions and expects restructuring and other charges of $500 million to $700 million, with target gross annual benefits of $350 million to $500 million once fully implemented. Cash flow from operations was $1.47 billion for the nine months, and cash and cash equivalents stood at $3.70 billion at March 31, 2024. Total debt was $7.77 billion, and the company issued $650 million of 5.000% Senior Notes due 2034 in February 2024, with proceeds intended in part to fund the purchase of the remaining interest in DECIEM. The filing also discloses a cybersecurity incident identified in July 2023, a consolidated securities class action filed in the Southern District of New York, and a notice of intent to purchase the remaining DECIEM interests in April 2024. The company suspended share repurchases in December 2022, and it declared a quarterly dividend of $0.66 per share on April 30, 2024.

    May 1, 2024
  9. 2024-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2023

    The Estée Lauder Companies Inc. reported net sales of $4,279 million for the three months ended December 31, 2023, down from $4,620 million a year earlier, with the filing stating a 7% decrease as reported and an 8% decrease in constant currency. For the six months, net sales were $7,797 million versus $8,550 million, a 9% decrease. The decline was driven primarily by its Asia travel retail business, which the company attributes to retailer inventory resets and lower traveler conversion, along with ongoing softness in prestige beauty in mainland China. Operating income was $574 million for the quarter (13.4% operating margin) versus $556 million a year earlier, while six-month operating income fell to $672 million from $1,217 million, reflecting lower net sales, a lower gross margin and higher operating expense margin. Net earnings attributable to the company were $313 million for the quarter ($.87 diluted EPS) versus $394 million ($1.09), and $344 million for six months ($.95 diluted EPS) versus $883 million ($2.45). Prior-year results included a $207 million impairment of other intangible assets, which is why the quarterly operating income comparison improved. The company launched a Profit Recovery Plan and, on February 5, 2024, announced a two-year restructuring program expected to produce restructuring and other charges of $500 million to $700 million before taxes, with a net reduction of approximately 1,800 to 3,000 positions and targeted annual gross benefits of $350 million to $500 million. Management expects continued challenges in Asia travel retail and mainland China, and expects to recognize the impact of reduced manufacturing volumes on standard cost in the fiscal 2024 third quarter. Cash flows from operating activities were $937 million for the six months, versus $751 million a year earlier, while cash and cash equivalents stood at $3,939 million at December 31, 2023. Total debt was $8,140 million, and the filing notes that share repurchases have been temporarily suspended since December 2022. The filing also discloses a cybersecurity incident identified in July 2023, which management says did not have a material impact on net sales and was $.07 dilutive to earnings per share for the six months. Two securities class action complaints and a shareholder derivative action were filed in the Southern District of New York, and management believes the outcome of current litigation will not have a material adverse effect.

    Feb 5, 2024
  10. 2024-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2023

    The Estée Lauder Companies Inc. reported net sales of $3.52 billion for the first quarter of fiscal 2024 (three months ended September 30, 2023), down from $3.93 billion in the prior-year period, a decrease of 10% as reported. Reported net sales declined primarily in skin care, which fell $466 million, driven by lower Asia travel retail shipments tied to retailer inventory resets and slower recovery of prestige beauty in mainland China. Operating income fell to $98 million from $661 million, and net earnings attributable to The Estée Lauder Companies Inc. dropped to $31 million, or $0.09 per diluted share, from $489 million, or $1.35 per diluted share. Gross margin decreased to 69.6% from 74.0%, and operating expenses rose to 66.8% of net sales from 57.2%, reflecting obsolescence charges tied to excess inventory and higher employee-related and stock-based compensation costs. Interest expense rose to $95 million from $46 million, reflecting a higher debt balance from financing the TOM FORD acquisition and higher interest rates. Cash and cash equivalents declined to $3.09 billion from $4.03 billion at June 30, 2023, and net cash flows used for operating activities were $408 million. Total debt was $8.09 billion, and total debt as a percent of total capitalization was 60%. The company stated that its long-term debt is rated A+ with a negative outlook by Standard & Poor's and A1 with a negative outlook by Moody's. The filing also discloses a July 2023 cybersecurity incident that the company says is contained, which was $0.08 dilutive to earnings per share in the quarter and is expected to be dilutive by approximately $0.08 for the full fiscal year. Management's outlook cites continued challenges in Asia travel retail, incremental headwinds from a slower-than-expected recovery of prestige beauty in mainland China, and business disruption risks in Israel and the Middle East. The company declared a quarterly dividend of $0.66 per share on October 31, 2023, and has temporarily suspended share repurchases since December 2022.

    Nov 1, 2023
  11. 2023-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2023

    The Estée Lauder Companies Inc. reported a sharp earnings decline for the three months ended March 31, 2023. Net sales were $3,751 million, down from $4,245 million, a reported decrease of 12%. Operating income fell to $297 million from $738 million, and operating margin dropped to 7.9% from 17.4%. Diluted net earnings per common share were $0.43, compared with $1.53. Management attributed the weakness mainly to lower demand in its Asia travel retail business, where retailers reduced inventory, along with COVID-19-related impacts in mainland China and Korea. Skin care, the largest category, saw net sales decline 20%. Gross margin fell to 69.1% from 76.6%, reflecting unfavorable product mix, higher obsolescence charges and higher manufacturing costs. For the nine months ended March 31, 2023, net sales were $12,301 million, down 13% from $14,176 million, and operating income was $1,514 million versus $3,091 million. The company recorded trademark impairment charges totaling $207 million in the nine-month period, related to Dr.Jart+, Too Faced and Smashbox. The effective tax rate rose to 44.6% for the quarter. Net cash provided by operating activities was $1,017 million, compared with $1,969 million a year earlier. Cash and cash equivalents increased to $5,531 million, while total debt rose to $7,371 million, and total debt as a percent of total capitalization was 56%, up from 49%. Commercial paper borrowings increased, and the company suspended share repurchases beginning in December 2022. Subsequent to the quarter, the company completed its acquisition of the TOM FORD brand on April 28, 2023, for approximately $2,250 million paid at closing, funded by cash on hand, commercial paper and approximately $250 million received from Marcolin S.p.A. An aggregate $300 million in deferred payments at 5% interest becomes due beginning July 2025. The filing states that the acquisition eliminates existing license royalty payments on TOM FORD Beauty.

    May 3, 2023
  12. 2023-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2022

    The Estée Lauder Companies Inc. reported a sharp decline in results for the second quarter of fiscal 2023 (three months ended December 31, 2022). Net sales were $4.62 billion, down 17% from $5.54 billion a year earlier, driven by COVID-related impacts affecting Asia travel retail, mainland China and the Dr.Jart+ travel retail business in Korea, lower replenishment orders in the United States, and the June 30, 2022 termination of certain designer fragrance licenses. Operating income fell to $556 million from $1,418 million, and operating margin declined to 12.0% from 25.6%. The company recorded other intangible asset impairments of $207 million related to the Dr.Jart+, Too Faced and Smashbox trademarks. Net earnings attributable to the company were $394 million, and diluted earnings per share were $1.09 compared with $2.97 in the prior-year quarter. For the six months, net sales were $8.55 billion, diluted EPS was $2.45 versus $4.85, and net cash from operating activities was $751 million versus $1,846 million. The balance sheet remained substantial, with cash and cash equivalents of $3.73 billion at December 31, 2022 and total debt of $5.37 billion. Total debt represented 48% of total capitalization. In January 2023 the company entered into a $2.0 billion revolving credit facility and raised its U.S. commercial paper program from $2.5 billion to $4.5 billion. The company also agreed in November 2022 to acquire the TOM FORD brand for approximately $2.3 billion, net of a $250 million payment from Marcolin S.p.A., with closing expected in the second half of fiscal 2023. Share repurchases were temporarily suspended beginning in December 2022, and the board declared a quarterly dividend of $0.66 per share on February 1, 2023. Management continues to cite ongoing uncertainty from COVID-19, China restrictions, the strong U.S. dollar, inflationary pressures and geopolitical tensions. The Post-COVID Business Acceleration Program, with estimated charges of $500 million to $515 million before taxes, continues to be executed, and the company noted that further impairments are possible if key business assumptions do not materialize.

    Feb 2, 2023
  13. 2023-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2022

    The Estée Lauder Companies Inc. reported net sales of $3.93 billion for the three months ended September 30, 2022, down from $4.39 billion ($4,392 million) a year earlier, an 11% reported decline (7% in constant currency). Management attributes the decline mainly to continued COVID-19 restrictions in China affecting travel retail in Hainan and mainland China, tighter inventory management by certain U.S. retailers, and the license terminations of certain designer fragrances effective June 30, 2022. Skin care (down 14%) and makeup (down 10%) drove the decrease, while hair care rose 7% and fragrance was virtually flat. Operating income fell to $661 million from $935 million, with operating margin of 16.8% versus 21.3%, and diluted EPS was $1.35 versus $1.88. Cash flow weakened markedly. Net cash flows used for operating activities were $650 million compared with $81 million a year earlier, reflecting lower earnings, a lower accounts payable balance and higher inventory. Cash and cash equivalents declined to $2.94 billion from $3.96 billion at June 30, 2022. Total debt was $5.37 billion, and the company repurchased about 0.4 million shares for $110 million during the quarter. Management continues to cite the Post-COVID Business Acceleration Program, now with cumulative approved charges of $515 million, and notes the Inflation Reduction Act's 1% excise tax on share repurchases beginning in the third quarter of fiscal 2023. The filing highlights ongoing macroeconomic and geopolitical risks, including China-related restrictions, the Russia and Ukraine situation, inflation, and U.S.-China tensions. A quarterly dividend of $0.66 per share was declared on November 1, 2022.

    Nov 2, 2022
  14. 2022-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2022

    The Estée Lauder Companies Inc. reported net sales of $4.245 billion for the three months ended March 31, 2022, up from $3.864 billion a year earlier, and $14.176 billion for the nine months, up from $12.279 billion. Net earnings attributable to The Estée Lauder Companies Inc. were $558 million for the quarter ($1.53 diluted per share) versus $456 million ($1.24 diluted) in the prior-year quarter, and $2.338 billion for the nine months ($6.39 diluted) versus $1.852 billion ($5.03 diluted). Reported operating income rose to $738 million in the quarter from $616 million, but the quarter included $216 million of impairment charges on other intangible and long-lived assets, mainly for the Dr.Jart+ trademark ($205 million) and GLAMGLOW trademark ($11 million). The company cited the resurgence of COVID-19 in Chinese provinces, which curtailed retail traffic and distribution in Asia/Pacific, where net sales decreased 4% for the quarter. Cash flow and capital allocation were central to the period. Net cash from operating activities was $1.969 billion for the nine months, down from $2.777 billion, reflecting higher working capital needs and higher cash paid for taxes. Capital expenditures rose to $658 million from $386 million, and treasury stock purchases totaled $1.998 billion versus $316 million a year earlier. Cash and cash equivalents fell to $3.836 billion from $4.958 billion at June 30, 2021. Total debt was $5.457 billion, and total debt as a percent of total capitalization (excluding noncontrolling interests) was 47%. The company's long-term debt is rated A+ by Standard & Poor's and A1 by Moody's, both with stable outlooks. The filing also details the acquisition of additional shares in DECIEM Beauty Group Inc. on May 18, 2021, for $1.092 billion in cash, which raised the company's fully diluted equity interest from approximately 29% to approximately 76%. The Post-COVID Business Acceleration Program, expected to bring restructuring and other charges of $400 million to $500 million before taxes, has cumulative charges of $311 million approved through March 31, 2022. The filing notes that results related to Russia and Ukraine were not material for the periods presented, and that the company suspended business in Russia in March 2022.

    May 3, 2022
  15. 2022-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2021

    The Estée Lauder Companies Inc. reported net sales of $5,539 million for the three months ended December 31, 2021, up from $4,853 million a year earlier, with growth in every product category and geographic region. For the six months, net sales were $9,931 million versus $8,415 million. Operating income rose to $1,418 million from $1,063 million in the quarter, and operating margin expanded to 25.6% from 21.9%. Diluted net earnings per common share were $2.97 for the quarter, compared with $2.37 a year earlier, and $4.85 for the six months versus $3.79. The filing attributes the sales recovery mainly to the progression toward brick-and-mortar and travel recovery, hero product franchises, holiday performance, and the consolidation of DECIEM, which the company acquired a controlling interest in during the fourth quarter of fiscal 2021. The company continued to note headwinds. Its gross margin fell to 77.0% for the six months from 77.3%, reflecting mix effects including lower margins on DECIEM products. The filing states that supply chain disruptions are expected to raise costs for the remainder of fiscal 2022, and that the continued curtailment of international travel is weighing on travel retail, historically one of the company's fastest-growing areas. Cash and cash equivalents were $4,603 million at December 31, 2021, against total debt of $5,531 million. Net cash from operating activities was $1,846 million for the six months, compared with $1,978 million a year earlier, as working capital needs returned to a more normalized level. Treasury stock purchases were $1,428 million for the six months, and the Board declared a $0.60 quarterly dividend on February 2, 2022. The Post-COVID Business Acceleration Program, announced in August 2020, remains in progress. The company estimates a net reduction of 2,000 to 2,500 positions and the closure of approximately 10% to 15% of its freestanding stores globally, with related restructuring and other charges expected to total $400 million to $500 million before taxes. Restructuring and other charges were $13 million for the quarter, down from $35 million in the prior-year quarter.

    Feb 3, 2022
  16. 2022-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2021

    The Estée Lauder Companies Inc. reported net sales of $4,392 million for the three months ended September 30, 2021, up from $3,562 million a year earlier, a 23% increase (21% in constant currency). Growth was broad-based, with every product category and geographic region rising, led by skin care ($2,449 million), makeup ($1,174 million), and fragrance ($609 million, up 50%). Operating income rose to $935 million from $705 million, with operating margin expanding to 21.3% from 19.8%. Net earnings attributable to the company were $692 million, and diluted EPS was $1.88 versus $1.42 in the prior-year quarter, up 32%. Cash flow was weaker: operating activities used $81 million compared with $358 million provided in the prior-year period, reflecting working capital build, with accounts receivable up $583 million. Cash and cash equivalents fell to $3,995 million from $4,958 million at June 30, 2021. The company spent $557 million repurchasing Class A stock and paid $192 million in dividends during the quarter. The DECIEM acquisition, which increased the company's stake to approximately 76% on a fully diluted basis, contributed incremental net sales and is still accounted for on a provisional basis. The filing also details the Post-COVID Business Acceleration Program, which is expected to bring $400 million to $500 million in pre-tax charges and a net reduction of 2,000 to 2,500 positions. Management notes that COVID-19 continues to disrupt retail traffic and travel retail, that makeup remains below pre-pandemic levels, and that higher transportation costs are expected to pressure cost of sales and operating expenses. Subsequent to quarter-end, the company replaced its revolving credit facility with a new $2.5 billion facility expiring in October 2026, with an option to extend.

    Nov 2, 2021
  17. 2021-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2021

    The Estée Lauder Companies Inc. reported third-quarter fiscal 2021 results (three months ended March 31, 2021) with net sales of $3.86 billion, up from $3.35 billion in the prior-year period, and net earnings attributable to the company of $456 million, or $1.24 per diluted share, compared with a net loss of $6 million, or $(0.02) per diluted share, a year earlier. Operating income rose to $616 million from $109 million, with operating margin of 15.9% versus 3.3%. The prior-year period carried $346 million of goodwill, other intangible and long-lived asset impairments, versus $33 million in the current period. Restructuring and other charges were $145 million in the quarter, tied primarily to the Post-COVID Business Acceleration Program, which the company expects to total between $400 million and $500 million before taxes. For the nine months ended March 31, 2021, net sales were $12.28 billion, up from $11.86 billion, and diluted EPS was $5.03 versus $3.12. Growth was led by skin care, which rose to $7.11 billion for the nine months, while makeup declined to $3.24 billion from $4.25 billion amid COVID-19 pressure on brick-and-mortar retail. Asia/Pacific net sales increased to $4.18 billion, while The Americas declined to $2.84 billion. Direct-to-consumer online sales represented approximately 18% of net sales for the nine months, compared with approximately 12% in the prior-year period. The balance sheet strengthened, with cash and cash equivalents of $6.40 billion at March 31, 2021 compared with $5.02 billion at June 30, 2020, and total debt of $5.96 billion. Operating cash flow was $2.78 billion for the nine months. The company issued $600 million of 1.950% Senior Notes due 2031 in March 2021, used in part to repay $450 million of 1.70% notes in April 2021, and agreed to acquire additional DECIEM Beauty Group shares for approximately $1.00 billion, expected to close in May 2021. The company also resumed share repurchases in March 2021.

    May 3, 2021
  18. 2021-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2020

    The Estée Lauder Companies Inc. reported net sales of $4.85 billion for the three months ended December 31, 2020, up from $4.62 billion a year earlier, with the filing stating a 5% increase as reported and 3% in constant currency. Net sales for the six months ended December 31, 2020 were $8.42 billion, down from $8.52 billion, a 1% decline as reported. Growth was led by skin care and the Asia/Pacific region, while makeup sales fell 25% for the quarter and the Americas and Europe, the Middle East & Africa regions declined amid COVID-19 disruptions to brick-and-mortar retail and travel retail. Direct-to-consumer online sales represented approximately 23% of second-quarter net sales, compared with approximately 15% a year earlier. Operating income was $1.06 billion for the quarter versus $261 million in the prior-year period, and $1.77 billion for the six months versus $1.04 billion. The prior-year period included $777 million of goodwill and other intangible asset impairments and a $553 million gain on the previously held Have & Be equity interest, so the comparison is distorted. Diluted EPS was $2.37 for the quarter compared with $1.52, and $3.79 for the six months compared with $3.13. The company recorded a $54 million goodwill impairment and $27 million of intangible impairments related to GLAMGLOW in November 2020, and it launched the Post-COVID Business Acceleration Program with estimated restructuring and other charges of $400 million to $500 million, before taxes. Balance sheet and cash flow strengthened. Cash and cash equivalents rose to $5.55 billion from $5.02 billion at June 30, 2020, and net cash from operating activities was $1.98 billion for the six months versus $1.26 billion. Total debt fell to $5.38 billion from $6.14 billion, and total debt as a percent of total capitalization was 50% compared with 61% at June 30, 2020. The company repaid the remaining $750 million under its revolving credit facility in August 2020 and declared a quarterly dividend of $.53 per share on February 4, 2021. Share repurchases remain temporarily suspended, as they have been since early February 2020.

    Feb 5, 2021
  19. 2021-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2020

    The Estée Lauder Companies Inc. reported its fiscal 2021 first-quarter results for the three months ended September 30, 2020. Net sales were $3,562 million, down from $3,895 million, a 9% decline as reported, with growth in skin care and Asia/Pacific offset by declines in makeup, fragrance and The Americas as COVID-19 store closures and reduced travel curtailed brick-and-mortar sales. Operating income fell to $705 million from $779 million, and net earnings attributable to the company were $523 million, or $1.42 per diluted share, compared with $595 million and $1.61 a year earlier. Restructuring and other charges were $9 million in the quarter, and adjusted diluted EPS (non-GAAP, excluding these charges) was $1.44 versus $1.67. Balance sheet and cash flow reflect a shift in liquidity. Cash and cash equivalents declined to $4,267 million from $5,022 million at June 30, 2020, as the company repaid the remaining $750 million drawn on its $1,500 million revolving credit facility in August 2020. Operating cash flow was positive at $358 million versus negative $170 million a year earlier, driven by working capital changes, while accounts receivable rose to $1,812 million from $1,194 million. Total debt as a percent of total capitalization fell to 55% from 61%. The company also disclosed the Post-COVID Business Acceleration Program, announced August 20, 2020, which it expects to generate restructuring and other charges of $400 million to $500 million before taxes, along with an estimated 1,500 to 2,000 position reduction and closure of 10% to 15% of freestanding stores globally. Management cites continued uncertainty from the pandemic, the resurgence of COVID-19 in parts of Europe, declining international travel retail, U.S.-China trade tensions and Brexit. Direct-to-consumer online sales represented approximately 13% of first-quarter net sales versus approximately 8% a year earlier. The Board declared a dividend of $.53 per share on October 30, 2020, payable December 15, 2020.

    Nov 2, 2020
  20. 2020-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2020

    The Estée Lauder Companies Inc. reported a sharp decline in its fiscal 2020 third quarter (three months ended March 31, 2020) as COVID-19 disrupted its operating environment. Net sales were $3.35 billion versus $3.74 billion a year earlier, and operating income fell to $109 million from $674 million, driven largely by $294 million of year-over-year goodwill, intangible and long-lived asset impairments. The company recorded a net loss attributable to The Estée Lauder Companies Inc. of $6 million, or $(0.02) per diluted share, compared with net earnings of $555 million, or $1.51 per diluted share, in the prior-year quarter. For the nine months, net sales were $11.86 billion and net earnings attributable to the company were $1.15 billion, or $3.12 per diluted share, with a $553 million gain on the previously held equity method investment in Have & Be (Dr. Jart+) included in Other income, net. The filing describes significant COVID-19 effects: retail stores across most regions closed for some period, travel retail was sharply curtailed, and management expects global prestige beauty to remain adversely impacted at least over the next few months. The company cut costs, expects operating expense savings of approximately $500 million to $600 million in the fiscal 2020 fourth quarter, plans capital investment reductions of approximately $250 million to $300 million for fiscal 2020, temporarily suspended share repurchases, and suspended the quarterly dividend that would have been paid in June 2020. Total debt rose to $6.20 billion, and debt as a percent of total capitalization was 59%, up from 44% at June 30, 2019. Subsequent to quarter-end, the company issued $700 million of 2.600% Senior Notes due 2030 and borrowed the full $1.5 billion under its revolving credit facility, which management says enhances flexibility and liquidity. The filing also details continued weakness in prestige makeup in North America, with Too Faced, BECCA, Smashbox and GLAMGLOW reporting units requiring impairment charges. Management states it cannot reasonably estimate the full extent of the COVID-19 impact on financial condition or results, and notes that additional impairment charges are possible.

    May 1, 2020
  21. 2020-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2019

    The Estée Lauder Companies Inc. reported results for the second quarter of fiscal 2020 (three months ended December 31, 2019). Net sales rose to $4.62 billion from $4.01 billion, up 15% as reported and 16% in constant currency, with growth across all regions and product categories, led by skin care. Operating income fell to $261 million from $771 million, driven by goodwill and other intangible asset impairments of $777 million in the quarter, including $511 million of goodwill and $266 million of trademarks tied to the Too Faced, BECCA and Smashbox reporting units. Diluted EPS was $1.52 versus $1.55 a year earlier. Excluding the impairments, other income and certain other items, the company stated adjusted diluted EPS rose 21% to $2.11. Other income of $576 million reflected a $553 million gain from remeasuring a previously held equity method investment upon acquiring the remaining 66.66% of Have & Be Co. Ltd. (Dr. Jart+) for $1,268 million in cash, which closed December 18, 2019. The acquisition is provisional pending final purchase accounting. To fund it and for general purposes, the company issued $1.8 billion of senior notes in November 2019. Cash and cash equivalents were $3,596 million at December 31, 2019, and total debt as a percent of total capitalization rose to 53% from 44% at June 30, 2019. Management cited continued declines in prestige makeup in North America and competitive pressures, as well as Hong Kong disruptions, Brexit and trade tensions. It also flagged that the coronavirus outbreak had caused a significant decline in air travel and consumer traffic in key shopping and tourist areas, with the greatest expected impact on global travel retail in the coming months.

    Feb 6, 2020
  22. 2020-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2019

    The Estée Lauder Companies Inc. reported net sales of $3.90 billion for the first quarter of fiscal 2020 (three months ended September 30, 2019), up from $3.52 billion a year earlier, with the filing stating a 11% increase as reported and 12% in constant currency. Growth was led by skin care, which rose to $1.84 billion from $1.49 billion, and by the travel retail business and China within Asia/Pacific and Europe, the Middle East & Africa. Net sales declined in The Americas, where the filing cites lower U.S. sales from Too Faced, M•A•C and BECCA amid weakness in prestige makeup in North America. Profitability improved. Operating income rose to $779 million from $652 million, and operating margin reached 20.0% versus 18.5%. Diluted earnings per share were $1.61 compared with $1.34, and the company's non-GAAP adjusted diluted EPS was $1.67 versus $1.41. The filing notes a gross margin of 76.7% and an effective tax rate of 21.3%. Cash flow from operations was negative at $170 million, reflecting working capital changes, mainly accounts payable timing, and the company returned cash through $313 million of share repurchases and $156 million of dividends. The balance sheet reflects the first-quarter adoption of ASC 842, which added $2.52 billion of operating lease right-of-use assets and $2.68 billion of total operating lease liabilities. Cash and cash equivalents fell to $2.26 billion from $2.99 billion, and total debt was $3.42 billion. The company declared a quarterly dividend of $.48 per share on October 30, 2019, up from $.43, and disclosed about 1.0 million shares repurchased for $195 million after September 30, 2019.

    Oct 31, 2019
  23. 2019-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2019

    The Estée Lauder Companies Inc. reported net sales of $3.744 billion for the three months ended March 31, 2019, up from $3.370 billion a year earlier, and $11.273 billion for the nine months, up from $10.388 billion. Reported net earnings attributable to the company were $555 million ($1.51 diluted EPS) for the quarter versus $372 million ($0.99) a year earlier, and $1.628 billion ($4.39 diluted EPS) for the nine months versus $922 million ($2.45). Management attributes sales growth primarily to skin care (Estée Lauder and La Mer) and makeup, with strength in China, Hong Kong and travel retail, while noting declining retail traffic in certain U.S. and U.K. brick-and-mortar stores and competitive pressure. Reported gross margin fell to 78.1% for the quarter from 79.7%, mainly reflecting the adoption of ASC 606 and hedge accounting changes. Operating income rose to $674 million from $498 million, but results include $90 million of nine-month goodwill and trademark impairments tied to the Smashbox reporting unit, which the company says could face further impairment if its plans do not materialize. Other income, net of $71 million for the quarter reflects a gain on liquidation of a foreign subsidiary that held available-for-sale securities. Balance sheet and cash flow highlights include cash and cash equivalents of $2.902 billion, total debt of $3.399 billion, net cash from operating activities of $1.756 billion for the nine months, and treasury stock purchases of $1.344 billion. The company also cited a $229 million cumulative reduction to opening retained earnings from adopting ASC 606 and reported that its Leading Beauty Forward program may total $900 million to $950 million in restructuring and other charges.

    May 1, 2019
  24. 2019-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2018

    The Estée Lauder Companies Inc. reported net sales of $4,005 million for the three months ended December 31, 2018, up from $3,744 million a year earlier, and $7,529 million for the six months, up from $7,018 million. Reported net earnings attributable to the company were $573 million for the quarter (diluted EPS $1.55, versus $.33) and $1,073 million for the six months (diluted EPS $2.88, versus $1.46). The prior-year results included a Transition Tax charge under the TCJA, which largely explains the swing in reported earnings. On an adjusted basis, the company reported diluted EPS of $1.74 for the quarter versus $1.52 a year earlier, and $3.15 for the six months versus $2.73. The adoption of ASC 606 reduced reported net sales by $67 million in the quarter and $134 million for the six months, and reduced operating income by $54 million and $85 million respectively. Gross margin fell to 77.3% in the quarter from 79.9%, reflecting the net impact of new accounting standards. Operating margin rose to 19.3% from 19.0% for the quarter, helped by lower operating expenses and lower restructuring charges. The company recorded $38 million of goodwill and other intangible asset impairments related to its Smashbox brand, following a slowdown in its makeup business. Balance sheet and cash flow data show cash and cash equivalents of $1,876 million at December 31, 2018, compared with $2,181 million at June 30, 2018. Operating cash flow for the six months was $1,273 million, versus $1,439 million a year earlier. The company spent $1,126 million on share repurchases during the six months and paid $297 million in dividends. Total debt was 44% of total capitalization, and the company declared a quarterly dividend of $.43 per share on February 4, 2019.

    Feb 5, 2019
  25. 2019-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2018

    The Estée Lauder Companies Inc. reported net sales of $3.52 billion for the first quarter of fiscal 2019 (three months ended September 30, 2018), up from $3.27 billion a year earlier, with the filing stating an 8% reported increase and a 9% increase in constant currency. Operating income rose to $652 million from $569 million, and diluted net earnings per share were $1.34 compared with $1.14. The filing notes that adoption of ASC 606 reduced reported net sales by $67 million and operating income by $31 million in the quarter, and that gross margin declined to 76.6% from 78.3%, primarily reflecting the net impact of newly adopted accounting standards. Cash flow was weaker: operating activities used $119 million in the quarter versus $82 million provided a year earlier, driven mainly by higher accounts receivable and lower accounts payable. The company spent $530 million repurchasing Class A shares, and cash and cash equivalents fell to $1.44 billion from $2.18 billion at June 30, 2018. Total debt was $3.54 billion, and total debt as a percent of total capitalization was 45%, up from 43%. Subsequent to quarter end, the company replaced its $1.5 billion revolving credit facility with a new facility expiring October 26, 2023, and the Board authorized repurchase of up to another 40.0 million Class A shares. The Board also declared a quarterly dividend of $.43 per share on October 30, 2018, up from $.38 in the prior quarter. Management highlighted growth in skin care, led by La Mer and Estée Lauder, and in travel retail and China/Hong Kong, while noting a decline in The Americas and continued competitive and macroeconomic pressures.

    Oct 31, 2018
  26. 2018-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2018

    The Estée Lauder Companies Inc. reported third-quarter fiscal 2018 results (three months ended March 31, 2018) with net sales of $3.37 billion, up 18% from $2.86 billion a year earlier (13% in constant currency), and nine-month net sales of $10.39 billion, up 16%. Operating income rose to $497 million from $427 million, and diluted EPS was $0.99 versus $0.80. Nine-month diluted EPS fell to $2.45 from $2.74, driven by a $332 million provisional Transition Tax charge under the TCJA, which the company recorded as a provisional charge, and related remeasurement and withholding-tax items. Growth was led by skin care, makeup and fragrance, with particular strength in Europe, the Middle East & Africa (travel retail) and Asia/Pacific (China and Hong Kong), while the Americas declined in the quarter. The balance sheet strengthened, with cash and cash equivalents rising to $2.14 billion from $1.14 billion at June 30, 2017, and net cash from operating activities of $1.93 billion for the nine months versus $1.25 billion a year earlier. The company repurchased $676 million of Class A stock and paid $407 million in dividends during the nine months. Total debt was $3.66 billion, and total debt as a percent of total capitalization (excluding noncontrolling interests) was 44%. The filing also discloses that testing related to certain product advertising claims did not meet company standards and is being revalidated, with some claims to be modified; the company stated this is not a product safety issue and that it cannot yet determine whether the outcome will be material. Restructuring under the Leading Beauty Forward program is expected to total $600 million to $700 million in charges.

    May 2, 2018
  27. 2018-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2017

    The Estée Lauder Companies Inc. reported net sales of $3.74 billion for the three months ended December 31, 2017, up from $3.21 billion a year earlier, and $7.02 billion for the six months, up from $6.07 billion. Reported net sales grew 17% for the quarter and 16% for the six months, or 14% in constant currency for both periods. Growth was led by skin care, makeup and fragrance, with the Asia/Pacific region up 33% and Europe, the Middle East & Africa up 20% on a reported basis. Profitability was sharply lower on a reported basis because of the Tax Cuts and Jobs Act. Net earnings attributable to the company fell to $123 million for the quarter from $428 million, and diluted EPS was $0.33 versus $1.15. The effective tax rate was 81.9% for the quarter, driven by a provisional $325 million Transition Tax charge, a $51 million remeasurement of U.S. net deferred tax assets, and an $18 million foreign withholding tax charge. Operating income rose 15% to $710 million for the quarter and 23% to $1.28 billion for the six months. Operating margin was 19.0% for the quarter, down from 19.2%, and 18.2% for the six months, up from 17.0%. The balance sheet strengthened, with cash and cash equivalents rising to $2.11 billion from $1.14 billion at June 30, 2017, and operating cash flow of $1.45 billion for the six months versus $824 million a year earlier. Total debt was $3.79 billion, and the company repurchased about 3.5 million Class A shares for $398 million in the six months. The Leading Beauty Forward restructuring program is still expected to generate total charges of $600 million to $700 million.

    Feb 2, 2018
  28. 2018-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2017

    The Estée Lauder Companies Inc. reported net sales of $3,274 million for the first quarter of fiscal 2018 (three months ended September 30, 2017), up from $2,865 million a year earlier, a 14% increase as reported and 14% in constant currency. Growth was led by makeup, skin care and fragrance, with gains in every geographic region, including Europe, the Middle East & Africa and Asia/Pacific. Operating income rose to $568 million from $418 million, and operating margin improved to 17.3% from 14.6%. Net earnings attributable to the company were $427 million, or $1.14 per diluted share, compared with $294 million, or $.79 per diluted share, in the prior-year period. Diluted EPS as adjusted for restructuring and contingent consideration items was $1.21, up 42%. The increase in earnings was helped by a $23 million income tax benefit from newly adopted share-based compensation guidance, which lowered the effective tax rate to 21.7% from 26.6%. Gross margin fell to 78.3% from 79.2%, mainly due to fiscal 2017 acquisitions Too Faced and BECCA. Cash flow from operations was $93 million, compared with a use of $150 million in the prior-year period. Total debt was $3,935 million at September 30, 2017, and the company had $1,444 million of cash and cash equivalents. The company also noted continued weakness in brick-and-mortar retail traffic in the United States, and it expects the Leading Beauty Forward program to bring total restructuring charges of $600 million to $700 million. The Board declared a quarterly dividend of $.38 per share on October 31, 2017, up from $.34 per share. Subsequent to quarter end, the company repurchased approximately 0.4 million Class A shares for $41 million.

    Nov 1, 2017
  29. 2017-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2017

    The Estée Lauder Companies Inc. reported net sales of $2,857 million for the three months ended March 31, 2017, up from $2,657 million a year earlier, and $8,930 million for the nine months, up from $8,616 million. Reported operating income was $427 million for the quarter versus $384 million, while nine-month operating income was $1,462 million versus $1,467 million. Diluted earnings per share were $0.80 for the quarter versus $0.71, and $2.74 for the nine months versus $2.71. The company attributes the results partly to charges associated with restructuring and other activities of $62 million for the quarter and $134 million for the nine months, tied to its Leading Beauty Forward initiative, which it expects to total $600 million to $700 million before taxes. The balance sheet changed materially during the period, driven by acquisitions and financing. Goodwill rose to $1,942 million from $1,228 million and other intangible assets rose to $1,337 million from $344 million, following the acquisitions of Too Faced for approximately $1.5 billion and BECCA. Long-term debt increased to $3,377 million from $1,910 million after the company issued $1.5 billion of senior notes in February 2017. Cash provided by operating activities was $1,252 million for the nine months, compared with $1,316 million a year earlier. The company disclosed that its disclosure controls and procedures were not effective as of March 31, 2017, due to a material weakness in internal control over financial reporting related to general information technology controls, identified in the fourth quarter of fiscal 2016. Management expects remediation to be completed in fiscal 2017. The company also reported that it repurchased approximately 4.2 million Class A shares for $363 million during the nine months and declared a quarterly dividend of $0.34 per share on May 2, 2017.

    May 3, 2017
  30. 2017-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2016

    The Estée Lauder Companies Inc. reported net sales of $3.21 billion for the three months ended December 31, 2016, up 3% from $3.12 billion a year earlier (5% in constant currency). Operating income fell to $617 million from $630 million, and diluted net earnings per share were $1.15 versus $1.19. Restructuring and other charges rose to $41 million from $19 million, and gross margin declined to 80.1% from 81.2%. For the six months, net sales were $6.07 billion, up 2%, while operating income was $1.04 billion versus $1.08 billion and diluted EPS was $1.94 versus $2.00. The company's balance sheet changed substantially during the quarter. It acquired Too Faced for approximately $1.5 billion in December 2016 and also acquired BECCA in November 2016. Total debt rose to $4.03 billion at December 31, 2016 from $2.24 billion at June 30, 2016, mainly from $1.8 billion of commercial paper, and total debt as a percent of total capitalization increased to 52% from 39%. Net cash provided by operating activities was $824 million for the six months, compared with $962 million a year earlier. The filing also discloses that disclosure controls were not effective as of December 31, 2016 because of a material weakness in internal control over financial reporting related to general information technology controls, which management expects to remediate in fiscal 2017. Under the Leading Beauty Forward initiative, the company expects restructuring and other charges of $600 million to $700 million before taxes and annual net benefits of $200 million to $300 million once fully implemented. The Board declared a quarterly dividend of $.34 per share on February 1, 2017.

    Feb 2, 2017
  31. 2017-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2016

    The Estée Lauder Companies Inc. reported net sales of $2,865 million for the first quarter of fiscal 2017 (three months ended September 30, 2016), up from $2,835 million a year earlier, a 1% increase as reported and 2% in constant currency. Operating income fell to $418 million from $453 million, with operating margin of 14.6% versus 16.0%. The decline reflected $31 million of charges associated with restructuring activities under the Leading Beauty Forward program. Net earnings attributable to the company were $294 million, or $0.79 per diluted share, compared with $309 million, or $0.82, a year earlier. Excluding restructuring charges, diluted EPS would have been $0.84, a 3% increase as adjusted. By product category, makeup net sales were essentially flat at $1,166 million, fragrance grew 7% to $442 million, and skin care declined 1% to $1,102 million. Geographically, the Americas declined 3% to $1,233 million, while Europe, the Middle East & Africa rose 3% to $1,044 million and Asia/Pacific rose 7% to $590 million. Cash flow from operations was negative $150 million, compared with positive $8 million a year earlier, mainly due to timing of accounts payable payments. Cash and cash equivalents fell to $664 million from $914 million at June 30, 2016. The filing states that disclosure controls were not effective as of September 30, 2016, due to a material weakness in internal control over financial reporting related to general information technology controls, identified in the fourth quarter of fiscal 2016. Management expects remediation to be completed in fiscal 2017. The company also disclosed a planned $1.5 billion revolving credit facility replacing its $1.0 billion facility and an agreement to acquire BECCA.

    Nov 2, 2016
  32. 2016-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2016

    The Estée Lauder Companies Inc. reported net sales of $2,656.5 million for the third quarter of fiscal 2016, up from $2,580.5 million, and operating income of $384.0 million, down from $397.2 million, reflecting a $15.2 million GTI Restructuring charge. Diluted EPS was $0.71, flat with the prior-year quarter. For the nine months ended March 31, 2016, net sales rose to $8,616.0 million from $8,256.0 million and operating income rose to $1,466.6 million from $1,378.0 million, while net earnings attributable to the company increased to $1,021.1 million and diluted EPS rose to $2.71 from $2.42. The filing notes that results were affected by approximately $440 million of unfavorable foreign currency translation over the nine months, partly offset by the favorable comparison to approximately $178 million of accelerated orders in the prior-year period. Cash flow and balance sheet trends warrant attention. Cash and cash equivalents fell to $556.3 million from $1,021.4 million at June 30, 2015, mainly reflecting purchases of investments, while long-term investments rose to $1,075.3 million from $420.3 million. Operating cash flow was $1,316.2 million versus $1,385.0 million a year earlier. Total debt rose to $1,925.3 million, and treasury stock purchases totaled $703.1 million for the nine months. Management also disclosed Leading Beauty Forward, a multi-year initiative announced May 3, 2016, expected to generate restructuring and other charges of $600 million to $700 million before taxes and annual net benefits of $200 million to $300 million once fully implemented. The company's gross margin was 80.6% for the nine months, and management attributed slower results in skin care and Hong Kong to competitive and retail traffic pressures, while makeup and luxury fragrance brands drove growth. The filing also reports a discretionary $30.0 million pension contribution in April 2016 and a quarterly dividend of $0.30 per share declared May 2, 2016.

    May 3, 2016
  33. 2016-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2015

    The Estée Lauder Companies Inc. reported net sales of $3,124.8 million for the three months ended December 31, 2015, up from $3,044.5 million a year earlier, and net sales of $5,959.5 million for the six months, up from $5,675.5 million. Reported operating income for the quarter was $629.4 million versus $632.8 million, and net earnings attributable to the company rose to $446.2 million from $435.7 million. Diluted EPS was $1.19 for the quarter versus $1.13, and $2.00 for the six months versus $1.71. The filing notes that foreign currency translation reduced net sales by approximately $168 million in the quarter and approximately $366 million for the six months, and that the prior-year six-month period was boosted by accelerated orders tied to the July 2014 SMI rollout, which created a favorable comparison of approximately $178 million in net sales. The quarter included $18.5 million of restructuring and other charges related to the GTI Restructuring, a transition of the company's global technology infrastructure to a primarily vendor-owned model, which the company expects will total approximately $40 million to $50 million and continue through calendar year 2016. Cash flow from operations was $962.3 million for the six months, down from $993.7 million, and cash and cash equivalents declined to $868.1 million from $1,021.4 million at June 30, 2015, reflecting investment purchases. Total debt was $1,981.7 million at December 31, 2015, including $340.2 million of commercial paper, and the company repurchased $627.8 million of its Class A stock during the six months. By product category, makeup net sales increased 10% on a reported basis for the six months, while skin care declined 1%. Management described growth in makeup and fragrance as strong, while noting slow retail traffic in some department store channels and softness in Hong Kong and China. The company also declared a $.30 per share quarterly dividend on February 4, 2016.

    Feb 5, 2016
  34. 2016-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2015

    The Estée Lauder Companies Inc. reported net sales of $2,834.7 million for the first quarter of fiscal 2016 (three months ended September 30, 2015), up from $2,631.0 million a year earlier. Reported net sales rose 8%, which the filing says included approximately $198 million of unfavorable foreign currency translation and a favorable comparison of approximately $178 million from accelerated orders in the prior-year period. Excluding foreign currency translation, net sales increased 15%. Operating income rose to $453.2 million from $348.0 million, with operating margin of 16.0% versus 13.2%. Net earnings attributable to the company were $309.3 million, or $.82 per diluted share, compared with $.59 a year earlier. The filing notes that the prior-year comparison benefited from accelerated orders tied to the July 2014 Strategic Modernization Initiative rollout, and that adjusted for those orders, operating income would have decreased 5%. Cash flow was weak in the quarter: net cash provided by operating activities was $8.2 million versus $127.7 million a year earlier, driven by working capital changes including a $389.0 million increase in accounts receivable. Cash and cash equivalents fell to $408.5 million from $1,021.4 million at June 30, 2015, reflecting net purchases of investments of $688.1 million offset by sales of $232.8 million, and the company repurchased $387.0 million of Class A stock. Total debt rose to $2,066.2 million, with $422.0 million of commercial paper outstanding, and total debt as a percent of total capitalization increased to 37% from 31%. In October 2015 the Board-authorized officers approved a plan to transform the company's global technology infrastructure to a primarily vendor-owned model, which the filing expects to bring restructuring and other charges of approximately $40 million to $50 million, mostly non-cash asset write-offs, through calendar year 2016.

    Nov 2, 2015
  35. 2015-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2015

    The Estée Lauder Companies Inc. reported third-quarter fiscal 2015 net sales of $2,580.5 million, up from $2,549.8 million a year earlier, and net earnings attributable to the company of $272.1 million, compared with $213.2 million. Diluted EPS was $0.71 versus $0.54. Management said that excluding the effect of foreign currency translation, net sales increased 8% in the quarter. Operating income rose to $397.2 million from $341.6 million, and operating margin improved to 15.4% of net sales from 13.4%. For the nine months, net sales were $8,256.0 million, roughly flat with $8,243.5 million, and operating income declined to $1,378.0 million from $1,447.4 million. The company attributed the decline in part to approximately $178 million of retailer orders accelerated into the fiscal 2014 fourth quarter ahead of the July 2014 Strategic Modernization Initiative rollout, which reduced operating results by approximately $127 million. Nine-month net earnings attributable to the company were $935.9 million, versus $946.4 million, and diluted EPS was $2.42 versus $2.40. Foreign currency translation reduced nine-month net sales by approximately $326 million. Balance sheet and cash flow changes reflect acquisitions and a new investment strategy. The company acquired Le Labo, RODIN olio lusso, Editions de Parfums Frédéric Malle and GLAMGLOW, with an aggregate acquisition-date fair value of approximately $445 million. Cash and cash equivalents fell to $1,288.3 million from $1,629.1 million, while available-for-sale investments totaled $524.4 million. Net cash from operating activities rose to $1,385.0 million from $1,169.4 million, and the company repurchased $626.1 million of Class A stock during the nine months.

    May 5, 2015
  36. 2015-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2014

    The Estée Lauder Companies Inc. filed this Form 10-Q for the second quarter of fiscal 2015, covering the three and six months ended December 31, 2014. Net sales for the quarter were $3,044.5 million, up 1% from $3,018.7 million, and net earnings attributable to the company were $435.7 million, up from $432.5 million. Diluted EPS rose to $1.13 from $1.09. For the six months, net sales declined to $5,675.5 million from $5,693.7 million, and net earnings attributable to the company fell 9% to $663.8 million, with diluted EPS of $1.71 versus $1.86. The filing attributes the six-month decline largely to approximately $178 million of accelerated retailer orders into the fiscal 2014 fourth quarter ahead of the July 2014 Strategic Modernization Initiative rollout, which created a difficult comparison and reduced operating income by approximately $127 million. Balance sheet and cash flow data show cash and cash equivalents of $1,241.2 million at December 31, 2014, down from $1,629.1 million at June 30, 2014, as the company moved part of its cash into short- and long-term investments totaling $512.9 million. Net cash provided by operating activities was $993.7 million for the six months, compared with $782.4 million a year earlier. Treasury stock purchases were $478.6 million, and dividends paid were $168.9 million. The company made several acquisitions, including Le Labo, RODIN olio lusso, Editions de Parfums Frederic Malle and GLAMGLOW, with total closing payments of approximately $252 million and an aggregate fair value of approximately $441 million, excluding amounts contingent on future results. Regionally, net sales in Europe, the Middle East & Africa rose 4% for the six months, while the Americas declined 3% and Asia/Pacific declined 2%. Skin care, makeup, and fragrance results were pressured by heritage brands, while makeup artist, luxury and hair care brands improved. The company declared a quarterly dividend of $.24 per share on February 4, 2015.

    Feb 5, 2015
  37. 2015-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2014

    The Estée Lauder Companies Inc. reported net sales of $2,631.0 million for the three months ended September 30, 2014, down from $2,675.0 million in the prior-year period. The filing attributes the decline primarily to accelerated retailer orders of approximately $178 million into the fiscal 2014 fourth quarter, ahead of the July 2014 rollout of the Strategic Modernization Initiative (SMI). Operating income fell to $348.0 million from $449.5 million, and net earnings attributable to the company decreased to $228.1 million, or $.59 per diluted share, compared with $300.7 million, or $.76, a year earlier. Management states that adjusting for the accelerated orders, net sales would have increased 5% and operating income would have increased 6%. Cash flow from operations improved to $127.7 million from $29.9 million, driven largely by a favorable change in accounts receivable. Cash and cash equivalents declined to $1,395.4 million from $1,629.1 million at June 30, 2014, as the company spent $207.0 million on treasury stock purchases and $77.5 million on dividends. Total debt was $1,333.0 million, and the company declared a quarterly dividend of $.24 per share on November 3, 2014. Subsequent to quarter end and through October 28, 2014, the company repurchased approximately 1.6 million additional shares for $120.0 million. Management cited intensifying competitive pressures, a softer U.S. retail environment in some channels, unfavorable foreign exchange from the strong U.S. dollar, and weakness in Hong Kong and China, including political instability in Hong Kong. Skin care, the most profitable category, saw net sales decline 7% to $1,091.4 million, while makeup, fragrance and hair care grew.

    Nov 4, 2014
  38. 2014-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2014

    The Estée Lauder Companies Inc. reported net sales of $2,549.8 million for the three months ended March 31, 2014, up from $2,291.8 million a year earlier, and $8,243.5 million for the nine months, up from $7,774.3 million. Net earnings attributable to the company were $213.2 million for the quarter (diluted EPS $0.54, versus $0.45) and $946.4 million for the nine months (diluted EPS $2.40, versus $2.35). The filing notes that the prior-year third quarter was boosted by approximately $94 million of retailer orders accelerated ahead of the January 2013 SMI rollout, which makes the quarter's comparisons favorable to the current period; excluding that effect, management states reported net sales would have increased 7% overall. The quarter also absorbed a $38.3 million charge, recorded in SG&A, to remeasure the Venezuelan subsidiary's monetary assets at the SICAD II rate of 49.81 per U.S. dollar, compared with the 6.3 rate previously used. Operating margin rose to 13.4% from 10.7%, while cash and cash equivalents stood at $1,530.2 million and total debt was $1,346.1 million at March 31, 2014. Net cash from operating activities was $1,169.4 million for the nine months, compared with $934.2 million a year earlier. Management says the business is performing well overall but cites softness in certain European countries and Korea, an uncertain U.S. retail environment, and the effects of Chinese government actions on travel retail. The company also expects additional retailer orders of $125 million to $150 million of net sales to fall into the fourth quarter of fiscal 2014 ahead of the July 2014 SMI rollout, with an estimated $.14 to $.17 impact on diluted EPS.

    May 2, 2014
  39. 2014-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2013

    The Estée Lauder Companies Inc. filed this Form 10-Q for the second quarter of fiscal 2014, covering the three and six months ended December 31, 2013. Net sales rose 3% in the quarter to $3,018.7 million, and 4% for the six months to $5,693.7 million, with growth led by makeup, fragrance and hair care in the quarter. Results were compared against a prior-year period that was inflated by about $94 million of retailer orders pulled forward ahead of the January 2013 SMI rollout. Operating income for the quarter was $656.3 million, roughly flat versus $653.1 million a year earlier, and operating margin declined to 21.7% from 22.3%, reflecting higher investment spending behind launches. Net earnings attributable to the company fell 3% to $432.5 million, and diluted EPS declined 4% to $1.09 from $1.13. Balance sheet and cash flow were solid. Cash and cash equivalents rose to $1,748.0 million from $1,495.7 million at June 30, 2013, and operating cash flow for the six months was $782.4 million versus $655.1 million. The company repurchased $204.9 million of Class A stock in the six months, and it declared a $.20 quarterly dividend on February 4, 2014. Total debt as a percent of total capitalization fell to 26% from 29%. Management flagged continued weakness in certain European countries and Korea, a cautious near-term view of the U.S. retail environment and China, and the effect of recent Chinese government actions on travel retail. It also noted a Venezuelan profit-margin cap imposed in January 2014 that it is still evaluating.

    Feb 5, 2014
  40. 2014-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2013

    The Estée Lauder Companies Inc. reported net sales of $2,675.0 million for the three months ended September 30, 2013, up from $2,549.5 million a year earlier, with net sales increasing 5% and 6% excluding the impact of foreign currency translation. Operating income declined 7% to $449.5 million, and operating margin fell to 16.8% of net sales from 18.9%, reflecting higher investment spending behind major launches. Net earnings attributable to the company rose slightly to $300.7 million, while diluted earnings per share held at $.76. Growth was broad-based across product categories and regions. Skin care net sales rose 5% to $1,171.0 million, makeup rose 4% to $1,001.0 million, and fragrance rose 6% to $367.4 million, with Asia/Pacific net sales up 7% and Europe, the Middle East & Africa up 8%. Cost of sales improved to 20.3% of net sales from 21.1%, but selling, general and administrative expenses rose to 62.8% of net sales from 60.0%, driven by advertising, merchandising and sampling spending. The company noted continued weakness in certain Southern European countries and Korea, and caution about the U.S. retail environment and slowing growth in China. Cash flow from operations was $29.9 million, compared with cash used of $125.2 million a year earlier, mainly due to favorable changes in accounts receivable and accounts payable. Cash and cash equivalents declined to $1,322.2 million from $1,495.7 million at June 30, 2013, and total debt was $1,340.6 million. The board declared a quarterly dividend of $.18 per share in August 2013 and a $.20 per share dividend on October 30, 2013.

    Nov 1, 2013
  41. 2013-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2013

    The Estée Lauder Companies Inc. reported net sales of $2,291.8 million for the third quarter of fiscal 2013, up 2% (or $43.6 million) from $2,248.2 million a year earlier, with growth in makeup in the Americas and Europe, the Middle East & Africa. Operating income rose 16% to $245.1 million, and operating margin improved to 10.7% from 9.4%. Net earnings attributable to the company increased 37% to $178.8 million, and diluted EPS rose from $.33 to $.45. For the nine months, net sales were $7,774.3 million (up 4%) and net earnings attributable to the company were $925.8 million (up 15%), with diluted EPS of $2.35 versus $2.03. The filing states that accelerated retailer orders tied to the January 2013 SAP-based Strategic Modernization Initiative shifted approximately $94 million of net sales into the fiscal 2013 second quarter from the third quarter, which created a difficult comparison and reduced third-quarter operating results by approximately $78 million. Excluding these orders, reported net sales would have increased 5%. The company closed its 2009 cost savings program, now expects cumulative charges of $325 million to $350 million, and transitioned to quarterly dividends, declaring $.18 per share on May 1, 2013. Balance sheet items include cash and cash equivalents of $1,438.6 million, total debt of $1,349.2 million, and total equity of $3,206.8 million at March 31, 2013. Operating cash flow for the nine months was $934.2 million, and the company repurchased $363.2 million of treasury stock in the period. The company also issued $500 million of senior notes in August 2012 and redeemed its 7.75% notes due 2013 for $230.1 million principal.

    May 3, 2013
  42. 2013-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2012

    The Estée Lauder Companies Inc. reported net sales of $2,933.0 million for the three months ended December 31, 2012, up from $2,737.5 million a year earlier, and $5,482.5 million for the six months, up from $5,214.2 million. Operating income rose to $653.1 million for the quarter from $597.0 million, and net earnings attributable to the company rose to $447.5 million, with diluted EPS of $1.13 versus $1.00. The filing notes that retailers accelerated orders of approximately $94 million into the fiscal 2013 second quarter ahead of the January 2013 SAP implementation, which likely would have occurred in the third quarter; the company states that excluding these orders, reported net sales would have increased 5% for the quarter and 4% for the six months. The company's balance sheet shows cash and cash equivalents of $1,323.6 million and total debt of $1,356.1 million at December 31, 2012. In August 2012 it issued $250.0 million of 2.35% Senior Notes due 2022 and $250.0 million of 3.70% Senior Notes due 2042, and used proceeds to redeem $230.1 million of 7.75% Senior Notes due 2013. The Board authorized repurchase of up to another 40.0 million Class A shares in November 2012, and the company announced a quarterly dividend of $.18 per share payable March 15, 2013. The company closed its restructuring Program, now estimating total cumulative charges of $325 million to $350 million, substantially recorded through fiscal 2013. Management cites Southern European weakness, Korea and Australia as areas performing worse than expected, along with a slowdown in travel retail growth. The filing also describes a pending appeal of a Paris Commercial Court judgment in the Darphin matter, with the company maintaining a previously accrued amount that is less than the court's award.

    Feb 6, 2013
  43. 2013-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2012

    The Estée Lauder Companies Inc. reported net sales of $2,549.5 million for the first quarter of fiscal 2013 (three months ended September 30, 2012), up from $2,476.7 million a year earlier, with net sales increasing 6% excluding the impact of foreign currency translation. Operating income rose to $482.0 million from $430.0 million, and operating margin improved to 18.9% of net sales from 17.4%. Net earnings attributable to the company increased to $299.5 million from $278.6 million, and diluted earnings per share were $.76 compared with $.70. Results were helped by growth in skin care, makeup and hair care, while fragrance declined slightly. Management noted weakness in certain Western European countries and Korea, and a slowdown in travel retail. The balance sheet showed cash and cash equivalents of $1,053.7 million at September 30, 2012, down from $1,347.7 million at June 30, 2012. Accounts receivable rose to $1,604.7 million from $1,060.3 million, and operating cash flow was negative at $(125.2) million, compared with $(36.2) million a year earlier. Total debt was $1,354.7 million, and the company issued $500 million of Senior Notes in August 2012 and used proceeds to redeem $230.1 million of 7.75% Senior Notes due 2013, recording a $19.1 million pre-tax extinguishment charge. The company repurchased about 3.0 million Class A shares for $165.4 million during the quarter and, on November 1, 2012, authorized repurchase of up to another 40.0 million shares and declared a $.72 per share dividend. The filing also describes the company's ongoing cost savings Program, which carries cumulative pre-tax charges of $303.0 million recorded through September 30, 2012, and a Darphin-related litigation in Paris in which the company has appealed a judgment against it.

    Nov 2, 2012
  44. 2012-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2012

    The Estée Lauder Companies Inc. reported third-quarter fiscal 2012 net sales of $2.25 billion, up from $2.17 billion a year earlier, with net earnings attributable to the company of $130.4 million versus $124.7 million, and diluted EPS of $0.33 versus $0.31. For the nine months, net sales rose to $7.46 billion from $6.75 billion, operating income increased to $1.24 billion from $1.02 billion, and diluted EPS reached $2.03 versus $1.64. The filing attributes part of the quarter's sales comparison to the timing of retailer orders tied to the SAP rollout, which shifted approximately $30 million of fiscal 2012 second-quarter sales forward and created a difficult comparison of roughly $72 million against the fiscal 2011 third quarter. Management cites skin care as the primary growth driver, with net sales of $1.02 billion for the quarter and $3.26 billion for the nine months. The filing also notes a provision for anticipated returns of approximately $16 million tied to repositioning certain products after U.S. sunscreen regulation changes, and a sunscreen-related inventory and returns impact that weighed on makeup operating income. Cash flow from operations was $869.7 million for the nine months, versus $727.6 million a year earlier, while the company repurchased $550.0 million of stock and paid $204.0 million in dividends. Management also flags ongoing softness in certain European countries, Japan and Australia. The filing reports total assets of $6.60 billion and cash of $1.19 billion at March 31, 2012. Total debt was $1.21 billion, and the company repaid its $120.0 million 6.00% Senior Notes in January 2012 using commercial paper.

    May 7, 2012
  45. 2012-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2011

    The Estée Lauder Companies Inc. reported net sales of $2,737.5 million for the three months ended December 31, 2011, up from $2,492.0 million, and $5,214.2 million for the six months, up from $4,583.7 million. Operating income rose to $597.0 million for the quarter from $517.7 million, and to $1,027.0 million for the six months from $815.7 million. Net earnings attributable to the company were $396.7 million for the quarter and $675.3 million for the six months, with diluted EPS of $1.00 and $1.70 respectively, both reflecting the two-for-one stock split effected in January 2012. Management attributed the growth to strength across all geographic regions and most product categories, with Skin Care, Makeup, and Asia/Pacific leading. The filing notes approximately $30 million of retailer orders accelerated into the second quarter ahead of the January 2012 SAP implementation, and states that this will create a difficult comparison with the fiscal 2012 third quarter of approximately $72 million in net sales and $51 million in operating income. Management also flagged softening in certain European countries, Japan and Australia due to global economic uncertainty, and said that a further deterioration could negatively affect consumer demand. Cash and cash equivalents were $999.1 million at December 31, 2011, down from $1,253.0 million at June 30, 2011, as the company returned cash to shareholders through $522.4 million of treasury stock purchases and $204.0 million of dividends during the six months. Operating cash flow was $610.2 million for the six months, compared with $508.0 million a year earlier. Total debt stood at $1,212.5 million, and the company repaid the $120.0 million 6.00% Senior Notes on January 15, 2012.

    Feb 6, 2012
  46. 2012-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2011

    The Estée Lauder Companies Inc. reported net sales of $2,476.7 million for the first quarter of fiscal 2012 (three months ended September 30, 2011), up from $2,091.7 million a year earlier, with net sales increasing 18% and 14% excluding the impact of foreign currency translation. Operating income rose 44% to $430.0 million, and operating margin improved to 17.4% of net sales from 14.2%. Net earnings attributable to the company increased 46% to $278.6 million, and diluted EPS rose from $.95 to $1.40. Growth was broad-based, with skin care net sales up 25% to $1,072.9 million, makeup up 17% to $928.8 million, and Europe, the Middle East & Africa up 26%. Cash flow and balance sheet items shifted during the quarter. Cash and cash equivalents fell to $719.5 million from $1,253.0 million at June 30, 2011, largely due to $402.9 million in treasury stock purchases and $80.8 million in additional repurchases after quarter-end. Accounts receivable rose to $1,378.5 million from $945.6 million. Net cash used for operating activities was $36.2 million. Total debt as a percent of total capitalization increased to 33% from 32%. The company declared a two-for-one stock split and a $1.05 per share cash dividend on November 3, 2011. The filing notes that cumulative charges under its cost savings Program reached $243.5 million through September 30, 2011, against an expected total of $350 million to $450 million before taxes. Management stated that recent economic uncertainty had not significantly affected the business to date, while cautioning that a prolonged downturn could weaken consumer demand.

    Nov 4, 2011
  47. 2011-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2011

    The Estée Lauder Companies Inc. reported third-quarter fiscal 2011 net sales of $2,165.7 million, up from $1,860.0 million, and net earnings attributable to the company of $124.7 million, compared with $57.5 million a year earlier. Diluted EPS was $.62 versus $.28. For the nine months, net sales rose to $6,749.4 million from $5,955.7 million, operating income reached $1,024.8 million versus $746.3 million, and diluted EPS was $3.28 compared with $2.27. The filing attributes the improvement to stronger net sales across all product categories and regions, favorable product mix, and savings from the company's multi-faceted cost savings program. Management notes that about $42 million of retailer orders in the third quarter likely would have occurred in the fourth quarter, ahead of an April 2011 SAP implementation at certain affiliates. Profitability was affected by goodwill and intangible impairments tied to the Ojon brand, totaling $36.3 million for the nine months, and a $29.3 million goodwill charge recorded in the third quarter. Total charges associated with restructuring activities were $47.4 million for the nine months. Cash flow from operations was $727.6 million for the nine months, down from $798.2 million, mainly due to higher accounts receivable. Cash used for investing rose to $479.8 million, reflecting the Smashbox acquisition, and treasury stock purchases were $346.6 million. Total debt as a percent of total capitalization fell to 33% from 39%. The company's cumulative charges under its cost savings program were $227.4 million through March 31, 2011, against an expected total of approximately $284 million to $289 million. The filing reports an effective tax rate of 32.4% for the nine months, down from 33.6%, largely due to favorable reserve adjustments tied to the conclusion of an IRS examination.

    May 6, 2011
  48. 2011-Q2

    Estée Lauder Companies Quarterly Report for Q2 Ended Dec 31, 2010

    The Estée Lauder Companies Inc. reported strong second-quarter fiscal 2011 results for the three months ended December 31, 2010. Net sales rose to $2,492.0 million from $2,262.3 million, and net earnings attributable to the company increased to $343.9 million from $256.2 million. Diluted earnings per share were $1.71, up from $1.28. Operating income was $517.7 million, with operating margin of 20.8% of net sales versus 17.7% a year earlier. For the six months, net sales were $4,583.7 million and net earnings attributable to the company were $535.0 million, or $2.67 diluted EPS. Management attributes the improvement to higher net sales across all regions and categories, cost savings from the multi-faceted cost savings program, and favorable product mix toward skin care. The balance sheet expanded during the period, largely due to the July 1, 2010 acquisition of Smashbox Beauty Cosmetics, funded from operating cash. Goodwill rose to $900.0 million from $752.5 million, and other intangible assets to $241.6 million from $109.5 million. Cash and cash equivalents declined to $1,043.1 million from $1,120.7 million, and accounts receivable increased to $1,172.5 million from $746.2 million. Operating cash flow was $508.0 million for the six months, down from $616.9 million, reflecting higher receivables and lower payables. Total debt as a percent of total capitalization decreased to 34% from 39%. The filing also notes the company's Program is expected to total between $350 million and $450 million in pre-tax charges over several years, with projected savings of $625 million to $675 million. Management cautions that global economic uncertainties remain, and that some sales gains in Europe, the Middle East & Africa from travel retail and a perfumery initiative are not expected to continue at the same pace.

    Feb 4, 2011
  49. 2011-Q1

    Estée Lauder Companies Quarterly Report for Q1 Ended Sep 30, 2010

    The Estée Lauder Companies Inc. reported net sales of $2,091.7 million for the three months ended September 30, 2010, up from $1,833.4 million in the prior-year period, with operating income rising to $298.0 million from $220.4 million and net earnings attributable to the company of $191.1 million compared with $140.7 million. Diluted earnings per share were $.95 versus $.71. Management attributed the improvement to strong growth across all geographic regions, favorable product mix toward skin care, and savings from its multi-faceted cost savings program, while noting it does not expect the same levels of period-over-period improvement to continue and remains cautious about global economic uncertainties. Cash flow and balance sheet items warrant attention. Net cash used for operating activities was $39.1 million, compared with $2.7 million provided in the prior-year period, driven mainly by a $369.2 million increase in accounts receivable ahead of the holiday season. Cash and cash equivalents fell to $693.5 million from $1,120.7 million at June 30, 2010. The company acquired Smashbox Beauty Cosmetics during the quarter for an aggregate cost of approximately $258 million, net of cash acquired and earn-out obligations related to Bobbi Brown, and repurchased approximately 2.4 million shares for $143.8 million in cash flow terms. Total debt stood at $1,235.1 million. Management highlighted that the North American retail environment may be challenging over the remainder of the fiscal year, and that the company continues its restructuring program, now expected to total between $350 million and $450 million before taxes, with a workforce reduction of approximately 2,000 employees. The company reported a 32.7% effective tax rate, up from 31.4%, and filed a Form 10-Q dated November 1, 2010.

    Nov 1, 2010
  50. 2010-Q3

    Estée Lauder Companies Quarterly Report for Q3 Ended Mar 31, 2010

    The Estée Lauder Companies Inc. reported net sales of $1,860.0 million for the third quarter of fiscal 2010 (three months ended March 31, 2010), up from $1,696.5 million a year earlier, and net earnings attributable to the company of $57.5 million, or $.28 per diluted share, compared with $27.2 million, or $.14, in the prior-year quarter. For the nine months, net sales were $5,955.7 million versus $5,641.0 million, and net earnings attributable to the company were $454.4 million, or $2.27 per diluted share, compared with $236.3 million, or $1.19. Operating income for the nine months was $746.3 million, against $433.1 million a year earlier, and the filing describes improved results across all three geographic regions, led by Asia/Pacific and Europe, the Middle East & Africa, with the Americas declining slightly on a nine-month basis. Cash generation strengthened: net cash provided by operating activities was $798.2 million for the nine months, compared with $306.7 million in the prior-year period, and cash and cash equivalents rose to $1,381.2 million at March 31, 2010 from $864.5 million at June 30, 2009. Total debt as a percent of total capitalization decreased to 41% from 46%. The company also announced a cash tender offer, commenced April 27, 2010, for up to $200.0 million of its 2012 and 2013 Senior Notes, which it expects to cost approximately $220 million to $230 million including fees, with a fourth-quarter charge of $26 million to $30 million pre-tax. The filing also details ongoing restructuring under a cost savings program first announced in February 2009, with total expected pre-tax charges of $350 million to $450 million and a workforce reduction of approximately 2,000 employees. Restructuring charges included in operating income were $16.5 million for the quarter and $59.1 million for the nine months. Goodwill and intangible impairments related mainly to the Ojon and Darphin brands were recorded in the second quarter, and the company discontinued certain perfumery stock keeping units with anticipated product returns and inventory write-offs in the third quarter.

    Apr 27, 2010