Estée Lauder Cos. beat an already-slashed forecast for the current quarter but its profit outlook for the fiscal year was below estimates, a sign the beauty company continues to struggle in its crucial Asia travel retail business.
Fourth-quarter earnings beat expectations on stronger sales in Europe and Asia. But travel retail in Hainan and South Korea continued to drag. The beauty company reported adjusted earnings per share of 7 cents for the period ending June 30, compared with the Wall Street estimate for a loss. Revenue also beat expectations.
Shares fell 5.5% in Friday premarket trading in New York.
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The company expects fiscal year 2024 adjusted earnings per share between $3.43 and $3.70, below the Bloomberg consensus. Sales are expected to rise 5% to 7%.
“We returned to organic sales growth in the fourth quarter,” Chief Executive Officer Fabrizio Freda said in a statement on Friday. Momentum in other regions, including Latin America and Europe, also continued, he said.
The company said a cybersecurity attack last month is likely to have an “immaterial impact” to net sales but will lower earnings by 7 cents a share in the first quarter and fiscal 2024. The attack shut down the company’s email for several days, delaying some online orders.
