Shares of Estee Lauder Companies EL,
tumbled 9.0% in premarket trading toward a 15-month low after the cosmetics, fragrance and hair care company reported fiscal third-quarter profit that beat expectations but revenue that came up short and cut its full-year outlook. Net income rose to $558 million, or $1.53 a share, from $456 million, or $1.24 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.90 beat the FactSet consensus of $1.67. Sales grew 9.9% to $4.25 billion but were below the FactSet consensus of $4.32 billion, as skin care sales rose 6% to $2.40 billon, makeup sales increased 9% to $1.11 billion, fragrance sales jumped 28% to $579 million and hair care sales grew 15% to $147 million. The company said it revised its fiscal 2022 outlook given additional headwinds from COVID-19-related restrictions in China and the impact of Russia’s invasion of Ukraine. The company cut its sales growth outlook to 7% to 9% from 13% to 16% and adjusted EPS guidance to $7.05 to $7.15 from $7.43 to $7.58. The stock has dropped 29.6% year to date through Monday, while the S&P 500 SPX,
has she 12.8%.
Credit: www.marketwatch.com /