Estée Lauder: Fourth Quarter Business Growth Strong

  •   06/09/2021 - 07h12
  •   DEHOUI Lionel

Estée Lauder Group returned to profit in the fourth quarter of its fiscal year 2021/22. The company's business had a good momentum during this period. This is reflected in the better results reported by the company for the quarter. In addition, the company started the new financial year with great confidence and a solid outlook.

Estée Lauder: Fourth Quarter Business Growth Strong

Fourth quarter performance

For the full fourth quarter of 2020/21 (ending June), Estée Lauder saw a remarkable increase in sales. The cosmetics group's revenues reached $3.936 billion, up 62% year-on-year. They were slightly higher than the market's forecast of $3.751 billion.

This strong performance was driven by increased sales of skincare, hair care and fragrances. On the other hand, makeup saw a decline in this last quarter of fiscal year 2020/21. For the entire period, the company posted a profit of $1.018 billion (or $2.76 per share).

A year earlier, the group posted a loss of $4.62 million (or $1.28 per share). For its part, the company's adjusted EPS came in at 78 cents in the fourth quarter of 2020/21 versus a shortfall of 53 cents per share in the same period last year. It also beat market expectations of 50 cents.

 

Outlook for the first half of fiscal year 2021/22

The Estée Lauder Group is posting solid targets for the first half of the new fiscal year underway. For the first half of 2021/22, it expects net sales growth. It is expected to be in the range of 17% to 19%. For its part, the market is targeting 18.1% sales growth in H1 for revenues of $4.207bn.

The cosmetics company expects to report earnings per share in the range of $1.49 to $1.61 in H1. This forecast is below market estimates, which expect EPS of $1.84. Finally, for the full six months of 2021/22, the company is targeting adjusted earnings per share of between $1.55 and $1.65.

 

Full year guidance for the new financial year

Like the first half of the year, the Estée Lauder Group is very optimistic in its outlook for the full year 2021/22. The company expects its business to be buoyant. For instance, the company estimates that net sales are expected to grow by 13% to 16% over the said fiscal year as a whole.

For its part, the market has a more solid forecast. It expects sales of $18.244 billion. This corresponds to an increase of 12.4%. For 2021/22, the group expects earnings per share in the range of 7.04 dollars to 7.26 dollars.

Analysts, on the other hand, are expecting EPS of $7.14 for the full year. Finally, the cosmetics company expects to achieve adjusted earnings per share of between $7.23 and $7.38 by the end of fiscal year 2021/22.