EL Earnings Prediction
The chart below shows how EL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EL sees a +11.03% change in stock price 10 days leading up to the earnings, and a +3.24% change 10 days following the report. On the earnings day itself, the stock moves by -9.24%. This data can give you a slight idea of what to expect for the next quarter's release.
EL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.00B
-6.45%
19.13%
Gross Margin
76.10%
4.19%
5.13%
Operating Margin
11.54%
-15.15%
169.63%
Net Margin
-14.74%
-294.72%
217.67%
EPS
-1.64
-288.51%
281.40%
No Data Available
EL Earnings Analysis
Estee Lauder Companies Inc Corporation (EL.N) Earnings Conference Call
Positive
Americas Online Sales Surge: Organic net sales growth in the Americas was driven by a 10% increase in online sales, including early shipments for The Ordinary's launch in Amazon's U.S. Premium Beauty Store.
Gross Margin Expansion: The gross margin expanded by 310 basis points compared to last year, attributed to strategic pricing actions and operational efficiencies under the PRGP.
Prestige Beauty Share Gain: Clinique's launch in Amazon's U.S. Premium Beauty Store resulted in 8 consecutive months of prestige beauty share gain in the U.S. market, demonstrating successful consumer acquisition strategies.
Retail Growth in China: La Mer experienced retail growth in Mainland China, contrasting with the industry's decline in prestige skincare, driven by the successful launch of its new rejuvenated night cream.
Shareholder Value Commitment: The company returned $366 million in cash to stockholders through dividends, reflecting a commitment to shareholder value amidst ongoing transformation efforts.
Negative
Sales Decline in Asia Pacific: Organic net sales declined 6% in Q2, with a significant 11% decrease in Asia Pacific, primarily due to double-digit declines in Mainland China, Korea, and Hong Kong, reflecting subdued consumer sentiment.
Operating Income Decline: Operating income decreased by 20% to $462 million, with the operating margin contracting by 200 basis points to 11.5% compared to 13.5% last year, indicating a decline in profitability.
Impairment Charges Overview: The company recorded $861 million in impairment charges related to Tom Ford and Too Faced, driven by challenges in Asia Pacific and increased weighted average cost of capital, highlighting underperformance in key brands.
Decline in Operating Cash Flows: Net cash flows from operating activities fell to $387 million for the first half of the fiscal year, down from $937 million the previous year, reflecting a decrease in earnings and unfavorable changes in operating assets and liabilities.
Operational Downsizing Announcement: The restructuring program is expected to result in a net reduction of 5,800 to 7,000 positions globally, with total charges anticipated to be between $1.2 billion and $1.6 billion, indicating significant operational downsizing.
EL FAQs
How does EL typically perform around its earnings report dates?
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EL Earning Call Sentiment
Earnings call transcript: Estee Lauder Q2 2025 beats EPS forecast, stock drops
EL.N
-1.45%Positive
The earnings call highlights several challenges: significant declines in Asia Pacific sales, substantial restructuring and impairment charges, and increased competition. Despite some positive developments like gross margin expansion and shareholder returns, the withdrawal of full-year guidance and negative sales outlook, particularly in China, weigh heavily. The Q&A section reveals management's evasiveness on specific issues, adding to concerns. Overall, the negative factors outweigh the positives, leading to a predicted negative stock price movement.
