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Investing.com -- Estee Lauder Companies Inc. reported better-than-expected third quarter results on Thursday, sending shares up around 3% in early trading.
The cosmetics giant posted adjusted earnings per share of $0.65, surpassing analyst estimates of $0.31. Revenue came in at $3.55 billion, slightly above the consensus forecast of $3.52 billion.
Despite the beat, Estee Lauder (NYSE:EL)’s sales declined 10% YoY, or 9% on an organic basis. The company cited ongoing challenges in its travel retail business and subdued consumer sentiment in Asia as key factors impacting results.
"In the third quarter of fiscal 2025, we delivered our organic sales outlook and exceeded profitability expectations," said CEO Stéphane de La Faverie. "We are moving decisively and building momentum as we bring our ’Beauty Reimagined’ strategic vision to life across its five key priorities."
The company highlighted prestige beauty market share gains in strategic markets like the U.S., China, and Japan. Online sales grew mid-single digits organically.
For the full fiscal year 2025, Estee Lauder forecasts adjusted EPS of $1.30-$1.55, compared to the analyst consensus of $1.39. The outlook reflects continued headwinds in travel retail and Asia Pacific.
"With the strategic reset of our travel retail business well underway to better reflect recent industry trends and market conditions, and provided there is meaningful resolution of the recently enacted tariffs to mitigate potential related negative impacts, we are confident in our ability to return to sales growth in fiscal 2026," de La Faverie added.