Estee Lauder delivers “outstanding” results for fiscal 2019
Select language to see a machine translation of this article. The original language of the Article is English and the translation is provided for your convenience.

Estee Lauder delivers “outstanding” results for fiscal 2019

Cosmetics giant Estee Lauder reported results this week that should bring a smile to investors’ faces – and judging by the rapid ascent of its share price after the company revealed financial data, it has! Estee Lauder CEO Fabrizio Freda described the full year results as “outstanding” noting that they were a direct outcome of strategic pivots put in place a decade ago, and the importance of investment into digital adoption throughout the company.

Estee Lauder’s latest results sent the share price sky high – up 59% so far this year

Estee Aug 21

Source: Yahoo Finance

For the full-year ended June 30, Estee Lauder said net sales grew by 9% against the previous year, climbing to $14.86 billion. This good news story applies to the company in almost all regions and product categories. It also saw success in its bottom-line: Estee Lauder reported earnings of $4.82 per share for the full year, a significant advance over last years $2.95 per share.

Drilling into the fourth quarter itself, Estee Lauder beat the Street on both top- and bottom-line figures. It saw net sales of $3.59 billion (analysts had expected to see a figure of $3.53 billion) and earnings per share of 64c (analysts had expected to see earnings of 53c per share).

Summarising the year, Freda said: “We achieved strong net sales gains across our business, fuelled by investments in our strategic priorities, including improved data analytics that helped power our innovation and digital marketing. Our winning strategy led to continued share gains in global prestige beauty. With savings from our ‘Leading Beauty Forward’ initiative and cost discipline throughout the organisation, we grew profit far ahead of our net sales growth, while also investing in our strategic priorities.”

Freda also said that prestige beauty continues to be one of the most desirable consumer sectors, and that Estee Lauder was well positioned to capture even more ground that it currently has. He added: “As the best diversified pure play in the industry, we are uniquely positioned to capture global share. In fiscal 2020, we plan to continue to invest in the most compelling opportunities, including those in emerging markets beyond China. We expect another year of strong net sales growth, margin improvement and a double-digit increase in earnings per share.”

Disclosure

Dominion holds Estee Lauder in its Global Trends Luxury Fund.


If you would you like to receive the Newsfeeds daily, please click here to sign up now!

Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
0.0/5 rating (0 votes)

Disclaimer
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.