Estee Lauder Companies Inc (NYSE:EL)’s fiscal fourth quarter and full year 2023 financial results are expected to show the continued impact of a slower than initially expected recovery of Asia travel retail, with declines on the top and bottom lines forecast for both the June quarter and the fiscal year.
The cosmetics giant is due to report its latest results before the opening bell in New York on Friday, August 18, 2023.
When handing down its fiscal 3Q results in May, the company lowered its full-year fiscal 2023 guidance to reflect greater headwinds for 4Q than it expected in February.
Ongoing pressures in Asia travel retail, including obsolescence charges, increased promotions costs, an unfavorable brand and category mix, and increased inventory levels, are expected to offset growth in other markets during 4Q, it noted.
However, Estée Lauder still expects its organic net sales to return to growth in 4Q, reflecting continued post-COVID recovery growth in nearly all markets.
For the 4Q, Wall Street analysts, on average, expect the company to report a 1.9% drop in revenue from the year-ago quarter at $3.49 billion, down from $3.56 billion.
Earnings per share (EPS) are expected to decline by 109.5% from $0.42 in 4Q 2022 to a loss per share of $0.04, according to Zacks Consensus Estimate.
For the full year, analysts expect EPS of $3.34 on revenue of $15.8 billion, compared to EPS of $7.24 on revenue of $17.74 billion in fiscal 2022.
Estée Lauder shares traded flat at $162.17 on Thursday afternoon ahead of its results.
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