Estee Lauder Companies Inc (NYSE:EL) is expected to report a year-over-year drop in sales and earnings for its fiscal first quarter when it reports on November 1.
The company has struggled in recent quarters as the result of pressure on Asia travel retail and softness in North America, partially offset by strong performance in fragrance.
When handing down its fiscal 2023 results in August, the company noted headwinds in China’s economy and potential impacts on its business from the volatility associated with high inflation, the strengthening US dollar, and recession concerns for 1Q.
For the quarter, it guided a decrease in sales between 10% and 12% from the year-ago quarter’s $3.93 billion and a loss per share in the range of $0.19 to $0.29, compared to earnings per share of $1.37 for 3Q 2022.
Wall Street analysts expect results in line with the beauty company’s guidance, projecting revenue of $3.53 billion, down 10.3% year-over-year.
They expect a loss per share of $0.21.
Estée Lauder shares traded higher on Monday afternoon, adding 0.4% at US$137.91.
The stock has shed 45.7% in the year to date.
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