The Estee Lauder Companies Inc. posted its fiscal third-quarter 2022 results, with earnings topping the Zacks Consensus Estimate. Revenue, however, fell short of expectations.
The beauty and cosmetics company’s adjusted earnings for the quarter came in at $1.90 per share, exceeding the Zacks Consensus Estimate of $1.66. The bottom line rose +17% (up 18% at constant currency) year over year.
Net sales increased +10% (up +11% at cc) year-over-year to $4,245 million missed the Zacks Consensus Estimate of $4,323.1 million. Organic net sales rose +9% in the quarter. Net sales grew in every product category, on the back of continued rebound in brick-and-mortar retail stores.
The company’s revenues in the Americas climbed +15% year over year (+ 14% at cc) to $1,053 million. Sales in Europe, the Middle East & Africa region rose +17% year over year (up 19% at cc) to $1,990 million. Asia-Pacific region sales, however, fell -4% ( -3% at cc) to $1,203 million.
Management mentioned that COVID-19 pandemic continued to impact the company’s retail traffic, travel, supply chain, inventory levels and other logistics worldwide in the quarter under review.
Looking ahead, the company is expecting fiscal full year 2022 reported net sales to increase in the range of 7-9%, compared to prior forecast of 13-16% year over year. It projects organic net sales growth in the range of 5-7% year over year, vs. previous estimate of 10-13% year over year.
The company now projects adjusted earnings per share in the range of $7.05 to $7.15, compared to prior expected range of $7.43-$7.58. It now expects adjusted earnings to grow 8-10% at cc in fiscal 2022, compared to prior expectation of 14-17% at cc.