The Estée Lauder Companies Inc. has reported Q3 fiscal 2024 net sales of $3.94 billion a 5% increase year-over-year; nine-month sales for fiscal 2024 totaled $11.74 billion, a 5% decrease year-over-year.
“With our third quarter results and fourth quarter outlook, we are confident that the second half of fiscal 2024 will prove to be an inflection point for our company performance," said Fabrizio Freda, president and CEO. "We expect accelerating momentum in organic sales growth in the fourth quarter, and for operating margin in the second half of fiscal 2024 to not only be stronger than the first half but also to expand from the year-ago period.”
Results in the latest quarter were driven by 12% growth in Europe, the Middle East and Africa, and stronger sales in Asia travel retail, emerging markets in Asia/Pacific, The Americas and EMEA, and 9% growth in skin care.
Makeup net sales increased 4%, driven by travel retail and strong growth in Latin America and Korea.
Fragrance net sales grew 1%, led by a mid-single-digit gain in luxury brands across all geographic regions.
Hair care net sales decreased 4% due to softness at Aveda and its North America salon channel.
EMEA net sales were up 12%, while Asia/Pacific climbed 3% and The Americas rose 1%.
Mainland China, a challenge amid lingering economic and COVID-19 challenges, grew net sales in the latest quarter, though the prestige sector remains soft, per the company.
Of the results, Freda said:
For the third quarter of fiscal 2024, we delivered our organic sales outlook, exceeded expectations for profitability and continued to improve working capital. La Mer, Estée Lauder, Jo Malone London, Le Labo, and The Ordinary led organic sales growth, driven by beloved hero products and highly sought innovation. Asia travel retail returned to organic sales growth, as developed and emerging markets across Asia/Pacific, EMEA, and Latin America further contributed.
During the second half of fiscal 2024, we have strategically expanded our consumer reach in exciting ways, from Clinique’s debut on the U.S. Amazon Premium Beauty store, which has greatly exceeded our retail sales expectations thus far, to striking new flagship stores in Asia/Pacific for Jo Malone London and Le Labo. We have also made progress across all work streams for the Profit Recovery Plan, setting the stage to deliver its $1.1 to $1.4 billion of incremental operating profit in fiscal years 2025 and 2026 while also generating funds to reinvest into our brands and consumer-facing initiatives to accelerate sustainable sales and profit growth as a faster and leaner organization.
