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NEW YORK--(BUSINESS WIRE)--Aug 19, 2024--
The Estée Lauder Companies Inc. (NYSE: EL) today reported net sales of $15.61 billion for its fiscal year ended June 30, 2024, a decrease of 2% from $15.91 billion in the prior year. Organic net sales decreased 2%, primarily reflecting ongoing softness in overall prestige beauty in mainland China and a decline in Asia travel retail driven by the decrease in the first half of fiscal 2024, reflecting actions taken by the Company and its retailers to reset inventory levels as well as lower conversion. Partially offsetting these declines was growth in Hong Kong SAR, overall in the markets of Europe, the Middle East & Africa (“EMEA”), Japan and Latin America.
The Company reported net earnings of $0.39 billion, compared with net earnings of $1.01 billion in the prior year. The Company’s reported effective tax rate was 47.0%, compared with 27.7% in the prior year. This increase reflects the impact of nondeductible goodwill impairment charges associated with the Company’s Dr.Jart+ reporting unit, a higher effective tax rate on the Company's foreign operations due to the geographical mix of earnings and the unfavorable impact associated with previously issued stock-based compensation. Diluted net earnings per common share was $1.08, compared with $2.79 reported in the prior year. Excluding restructuring and other charges and adjustments as detailed on page 3, adjusted diluted net earnings per common share was $2.59, a 22% decrease in constant currency. The fiscal 2024 impact of business disruptions in Israel and other parts of the Middle East was $.06 dilutive to reported and adjusted net earnings per common share.
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1 Organic net sales represents net sales excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures; as well as the impact of foreign currency translation. The Company believes that the Non-GAAP measure of organic net sales growth provides year-over-year sales comparisons on a consistent basis. See page 2 for reconciliations to GAAP.
Fabrizio Freda, President and CEO said, “In fiscal 2024’s fourth quarter, we achieved our organic sales outlook and exceeded expectations for profitability, closing a difficult year. Organic sales and adjusted EPS returned to growth in the second half.
“For fiscal 2025, we anticipate continued declines in the prestige beauty segment in China, mainly reflecting persistent weak sentiment among Chinese consumers. We intend to drive share gains in a market that continues to hold strong long-term promise. In the rest of our business, we are planning to deliver improved performance across both developed and emerging markets. To fuel this, our priorities are reigniting Skin Care, capitalizing on the multiple growth drivers of high-end Fragrance, moving faster in leveraging winning channels, launching accretive innovation inclusive of new, big opportunities, and enhancing our precision marketing capabilities. From La Mer’s entry into night-specific consumption, to The Ordinary’s expansion into new markets and more brands debuting in new channels, like on Amazon’s U.S. Premium Beauty store, we have a rich slate of initiatives to drive new consumer acquisition and continue to leverage our strength in retention. Alongside this work, we are realizing initial benefits of the Profit Recovery and Growth Plan as we rightsize our cost structure and simplify the organization to be more agile and faster to market.
“For fiscal 2025, the Profit Recovery and Growth Plan enables us to offset the pressure to profitability driven by the prestige beauty segment’s ongoing softness in China, yielding a more moderate pace of operating margin expansion than we’d previously expected. While our sales and profit outlook for fiscal 2025 is disappointing, this year we will make important strides, as we implement our strategy reset to continue rebalancing regional growth, deliver improved annual profitability, and strengthen go-to-market and innovation capabilities to elevate our execution in response to a more competitive market. These efforts, coupled with the strengths of our brands, product portfolio, and talented teams around the world, will position us to both outperform prestige beauty in fiscal 2026 and accelerate profitability expansion.”
Fiscal 2024 Results
Reported net sales decreased 2%, including royalty revenue from the fiscal 2023 fourth quarter acquisition of the TOM FORD brand, the impact from foreign currency translation and returns associated with restructuring and other activities.
Reconciliation between GAAP and Non-GAAP Net Sales Growth (Unaudited) | ||
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| Year Ended | |
As Reported-GAAP | (1.9 | )% |
Impact of royalty revenue from the acquisition of the TOM FORD brand | (0.3 | ) |
Impact of foreign currency translation | 0.7 |
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Returns associated with restructuring and other activities | (0.2 | ) |
Organic, Non-GAAP | (1.7 | )% |
(1) Percentages are calculated on an individual basis |
Adjusted diluted net earnings per common share excludes restructuring and other charges and adjustments as detailed in the following table.
Reconciliation between GAAP and Non-GAAP - Diluted Net Earnings Per Common Share (“EPS”) (Unaudited) | ||||||||
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| Year Ended June 30 | |||||||
| 2024 | 2023 | Growth | |||||
As Reported EPS - GAAP | $ | 1.08 | $ | 2.79 | (61 | )% | ||
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Non-GAAP |
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Restructuring and other charges |
| .27 |
| .18 |
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Change in fair value of DECIEM acquisition-related stock options inclusive of payroll tax | ||||||||
(less the portion attributable to redeemable noncontrolling interest) |
| .05 |
| .05 |
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Goodwill and other intangible asset impairments |
| 1.19 |
| .44 |
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Adjusted EPS - Non-GAAP | $ | 2.59 | $ | 3.46 | (25 | )% | ||
Impact of foreign currency translation on earnings per share |
| .10 |
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Adjusted Constant Currency EPS - Non-GAAP | $ | 2.69 | $ | 3.46 | (22 | )% |
Net sales and operating income in nearly all of the Company’s product categories and geographic regions were impacted by a stronger U.S. dollar in relation to most currencies.
Total reported operating income was $0.97 billion, a decrease of 36% from $1.51 billion in the prior year. In constant currency, adjusted operating income decreased 10% to $1.64 billion, primarily due to lower net sales, partially offset by lower cost of sales, excluding the following items:
During the fiscal 2024 second quarter, the Company identified and corrected prior-period misclassifications of net sales and operating income between certain of its product categories. As a result, product category net sales and operating income have been adjusted from the amounts previously reported for the three months and year ended June 30, 2023 for comparability purposes. The misclassifications had no impact on the current-period or prior-period consolidated statements of earnings, consolidated statements of comprehensive income, consolidated balance sheets, or the consolidated statements of cash flows, and the Company determined that the impact on its current-period and previously issued financial statements for the respective periods was not material. See the Q2 Quarterly Earnings section of the Company’s website for supplemental information relating to the impacts of these misclassifications.
Results by Product Category (Unaudited) | ||||||||||||||||||||||
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| Year Ended June 30 | |||||||||||||||||||||
| Net Sales | Percentage Change (1) | Operating | Percentage | ||||||||||||||||||
($ in millions) | 2024 | 2023 | Reported | Impact of | Impact of | Organic | 2024 | 2023 | Reported | |||||||||||||
Skin Care | $ | 7,908 |
| $ | 8,249 |
| (4 | )% | — | % | 1 | % | (3 | )% | $ | 735 |
| $ | 1,277 |
| (42 | )% |
Makeup |
| 4,470 |
|
| 4,532 |
| (1 | ) | — |
| — |
| (1 | ) |
| 93 |
|
| (21 | ) | 100 | + |
Fragrance |
| 2,487 |
|
| 2,451 |
| 1 |
| — |
| — |
| 2 |
|
| 265 |
|
| 370 |
| (28 | ) |
Hair Care |
| 629 |
|
| 652 |
| (4 | ) | — |
| — |
| (4 | ) |
| (52 | ) |
| (36 | ) | (44 | ) |
Other |
| 115 |
|
| 53 |
| 100 | + | (100 | +) | — |
| 15 |
|
| 53 |
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| 4 |
| 100 | + |
Subtotal | $ | 15,609 |
| $ | 15,937 |
| (2 | )% | — | % | 1 | % | (2 | )% | $ | 1,094 |
| $ | 1,594 |
| (31 | )% |
Returns/charges |
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associated with |
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restructuring and |
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other activities |
| (1 | ) |
| (27 | ) |
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| (124 | ) |
| (85 | ) |
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Total | $ | 15,608 |
| $ | 15,910 |
| (2 | )% | — | % | 1 | % | (2 | )% | $ | 970 |
| $ | 1,509 |
| (36 | )% |
Non-GAAP Adjustments to As Reported Operating Income: | ||||||||||||||||||||||
Returns/charges associated with restructuring and other activities |
| 124 |
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| 85 |
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Skin Care - Changes in fair value of DECIEM acquisition-related stock options inclusive of | ||||||||||||||||||||||
payroll tax |
| 23 |
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| 22 |
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Skin Care - Goodwill and other intangible asset impairments |
| 471 |
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| 100 |
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Makeup - Other intangible asset impairments |
| — |
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| 107 |
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Adjusted Operating Income - Non-GAAP | $ | 1,588 |
| $ | 1,823 |
| (13 | )% | ||||||||||||||
(1) Percentages are calculated on an individual basis. Refer to the Reconciliation between GAAP and Non-GAAP Net Sales Growth on page 2 for additional detail on the organic impacts to reported net sales. |
The product category net sales commentary below reflects organic performance, excluding the negative impacts which are reflected in the preceding table.
Skin Care
Makeup
Fragrance
Hair Care
Results by Geographic Region | ||||||||||||||||||||||
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| Year Ended June 30 | |||||||||||||||||||||
| Net Sales | Percentage Change (1) | Operating | Percentage | ||||||||||||||||||
($ in millions) | 2024 | 2023 | Reported | Impact of | Impact of | Organic | 2024 | 2023 | Reported | |||||||||||||
The Americas | $ | 4,581 |
| $ | 4,518 |
| 1 | % | (1 | )% | — | % | — | % | $ | 34 |
| $ | (73 | ) | 100 | +% |
Europe, the | ||||||||||||||||||||||
Middle East & | ||||||||||||||||||||||
Africa |
| 6,140 |
|
| 6,225 |
| (1 | ) | — |
| (1 | ) | (2 | ) |
| 836 |
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| 843 |
| (1 | ) |
Asia/Pacific |
| 4,888 |
|
| 5,194 |
| (6 | ) | — |
| 3 |
| (3 | ) |
| 224 |
|
| 824 |
| (73 | ) |
Subtotal | $ | 15,609 |
| $ | 15,937 |
| (2 | )% | — | % | 1 | % | (2 | )% | $ | 1,094 |
| $ | 1,594 |
| (31 | )% |
Returns/charges | ||||||||||||||||||||||
associated with | ||||||||||||||||||||||
restructuring and | ||||||||||||||||||||||
other activities |
| (1 | ) |
| (27 | ) |
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|
| (124 | ) |
| (85 | ) |
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Total | $ | 15,608 |
| $ | 15,910 |
| (2 | )% | — | % | 1 | % | (2 | )% | $ | 970 |
| $ | 1,509 |
| (36 | )% |
Non-GAAP Adjustments to As Reported Operating Income: | ||||||||||||||||||||||
Returns/charges associated with restructuring and other activities |
| 124 |
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| 85 |
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The Americas - Changes in fair value of DECIEM acquisition-related stock options inclusive | ||||||||||||||||||||||
of payroll tax |
| 14 |
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| 22 |
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Europe, the Middle East & Africa - Changes in fair value of DECIEM acquisition-related | ||||||||||||||||||||||
stock options inclusive of payroll tax |
| 9 |
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| — |
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The Americas - Other intangible asset impairments |
| — |
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| 107 |
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Asia/Pacific - Goodwill and other intangible asset impairments |
| 471 |
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| 100 |
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Adjusted Operating Income - Non-GAAP | $ | 1,588 |
| $ | 1,823 |
| (13 | )% | ||||||||||||||
(1) Percentages are calculated on an individual basis. Refer to the Reconciliation between GAAP and Non-GAAP Net Sales Growth on page 2 for additional detail on the organic impacts to reported net sales. |
The geographic region net sales commentary below reflects organic performance, excluding the negative (positive) impacts which are reflected in the preceding table.
The Americas
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2 The Company’s Priority Emerging Markets by geographic region: The Americas: Brazil and Mexico; EMEA: India, the Middle East, Turkey and South Africa; and Asia/Pacific: Thailand, Malaysia, Vietnam, Indonesia and the Philippines.
Europe, the Middle East & Africa
Asia/Pacific
Cash Flows
Fourth Quarter Results
Results by Product Category | ||||||||||||||||||||||
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| Three Months Ended June 30 | |||||||||||||||||||||
| Net Sales | Percentage Change (1) | Operating | Percentage | ||||||||||||||||||
($ in millions) | 2024 | 2023 | Reported | Impact of | Impact of | Organic | 2024 | 2023 | Reported | |||||||||||||
Skin Care | $ | 2,035 | $ | 1,795 |
| 13 | % | — | % | 2 | % | 15 | % | $ | (185 | ) | $ | 39 |
| (100 | +%) | |
Makeup |
| 1,105 |
| 1,108 |
| — |
| — |
| 1 |
| 1 |
|
| 37 |
|
| (12 | ) | 100 | + | |
Fragrance |
| 539 |
| 544 |
| (1 | ) | — |
| 1 |
| 1 |
|
| (2 | ) |
| 27 |
| (100 | +) | |
Hair Care |
| 165 |
| 164 |
| 1 |
| — |
| 2 |
| 2 |
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| (2 | ) |
| (4 | ) | 50 | ||
Other |
| 27 |
| 15 |
| 80 |
| (40 | ) | (7 | ) | 33 |
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| 15 |
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| (3 | ) | 100 | + | |
Subtotal | $ | 3,871 | $ | 3,626 |
| 7 | % | — | % | 1 | % | 8 | % | $ | (137 | ) | $ | 47 |
| (100 | +%) | |
Returns/charges | ||||||||||||||||||||||
associated with | ||||||||||||||||||||||
restructuring and | ||||||||||||||||||||||
other activities |
| — |
| (17 | ) |
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| (96 | ) |
| (52 | ) |
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Total | $ | 3,871 | $ | 3,609 |
| 7 | % | — | % | 1 | % | 8 | % | $ | (233 | ) | $ | (5 | ) | (100 | +%) | |
Non-GAAP Adjustments to As Reported Operating Income: | ||||||||||||||||||||||
Returns/charges associated with restructuring and other activities |
| 96 |
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| 52 |
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Skin Care - Changes in fair value of DECIEM acquisition-related stock options inclusive of | ||||||||||||||||||||||
payroll tax |
| 15 |
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| 24 |
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Skin Care - Goodwill and other intangible asset impairments |
| 471 |
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| — |
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Adjusted Operating Income - Non-GAAP | $ | 349 |
| $ | 71 |
| 100 | +% | ||||||||||||||
(1) Percentages are calculated on an individual basis |
| Results by Geographic Region (Unaudited) | ||||||||||||||||||||||
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| Three Months Ended June 30 | |||||||||||||||||||||
| Net Sales | Percentage Change (1) | Operating | Percentage | ||||||||||||||||||
($ in millions) | 2024 | 2023 | Reported | Impact of | Impact of | Organic | 2024 | 2023 | Reported | |||||||||||||
The Americas | $ | 1,014 | $ | 1,071 |
| (5 | )% | (1 | )% | — | % | (5 | )% | $ | 277 |
| $ | (20 | ) | 100 | +% | |
Europe, the | ||||||||||||||||||||||
Middle East & | ||||||||||||||||||||||
Africa |
| 1,652 |
| 1,253 |
| 32 |
| — |
| — |
| 32 |
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| 11 |
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| (76 | ) | 100 | + | |
Asia/Pacific |
| 1,205 |
| 1,302 |
| (7 | ) | — |
| 4 |
| (4 | ) |
| (425 | ) |
| 143 |
| (100 | +) | |
Subtotal | $ | 3,871 | $ | 3,626 |
| 7 | % | — | % | 1 | % | 8 | % | $ | (137 | ) | $ | 47 |
| (100 | +%) | |
Returns/charges | ||||||||||||||||||||||
associated with | ||||||||||||||||||||||
restructuring and | ||||||||||||||||||||||
other activities |
| — |
| (17 | ) |
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| (96 | ) |
| (52 | ) |
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Total | $ | 3,871 | $ | 3,609 |
| 7 | % | — | % | 1 | % | 8 | % | $ | (233 | ) | $ | (5 | ) | (100 | +%) | |
Non-GAAP Adjustments to As Reported Operating Income: | ||||||||||||||||||||||
Returns/charges associated with restructuring and other activities |
| 96 |
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| 52 |
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The Americas - Changes in fair value of DECIEM acquisition-related stock options inclusive |
| 6 |
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| 24 |
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Europe, the Middle East & Africa - Changes in fair value of DECIEM acquisition-related stock |
| 9 |
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| — |
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Asia/Pacific - Goodwill and other intangible asset impairments |
| 471 |
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| — |
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Adjusted Operating Income - Non-GAAP | $ | 349 |
| $ | 71 |
| 100 | +% | ||||||||||||||
(1) Percentages are calculated on an individual basis |
Outlook for Fiscal 2025 First Quarter and Full Year
The Company expects global prestige beauty to grow 2%-3% in fiscal 2025, reflecting the ongoing strength in many developed and emerging markets globally, albeit with more tempered growth in certain large markets, such as North America, partially offset by continued declines in mainland China and Asia travel retail due to low consumer sentiment and conversion rates. The Company expects global prestige beauty to re-accelerate to historical mid-single-digit growth in fiscal 2026, assuming China progressively stabilizes and then returns to growth.
In fiscal 2025, the Company expects more tempered performance than the industry, mainly driven by its significant business in mainland China and Asia travel retail. Elsewhere, the Company expects to deliver accelerated net sales growth, driven by the Company’s strategic priorities to reignite Skin Care, capitalize on the multiple growth drivers of high-end Fragrance, move faster in leveraging winning channels, launch accretive innovation inclusive of new, big opportunities, and enhance the Company’s precision marketing capabilities.
The Company is focused on delivering on the benefits from its Profit Recovery and Growth Plan (“PRGP”), previously known as the Profit Recovery Plan (“PRP”). The recent renaming of the PRGP better reflects the plan’s vision from the outset of both sales growth acceleration and profit margin recovery. The PRGP is designed to improve gross margin, lower the Company’s cost base, including reducing overhead expenses, while reinvesting in key consumer-facing activities to accelerate growth, create expense leverage also at lower levels of sales growth and increase agility and speed-to-market.
The Company’s initiatives under the PRGP are on track and are still expected to drive operating profit net savings of $1.1 billion to $1.4 billion, including net benefits from the restructuring program, in fiscal years 2025 and 2026, slightly more than half of which is expected to be realized through fiscal 2025. However, the greater than previously expected headwinds in mainland China and Asia travel retail are expected to partially offset the PRGP’s initial operating profit net benefits.
The Company remains mindful of risks, including potential retailer destocking, associated with (i) current consumer sentiment contributing to the ongoing declines in overall prestige beauty in mainland China as well as in retail trends in Asia travel retail, including subdued conversion; (ii) the shift in traveler demographics and ongoing increase in spending on experiences impacting Asia travel retail; and (iii) adapting to channel shifts and the challenging dynamics of a strong competitive environment amidst the slowdown in growth in prestige beauty in North America.
The full year outlook reflects the following assumptions and expectations:
The Company continues to monitor the effects of the global macro environment, including the risk of recession; currency volatility; inflationary pressures; supply chain challenges; social and political issues; legal and regulatory matters, including the imposition of tariffs and sanctions; geopolitical tensions; and global security issues. The Company is also mindful of inflationary pressures on its cost base and is monitoring the impact on consumer preferences and the impact of changes being made in the organization, including those related to the PRGP.
Full Year Fiscal 2025
Sales Outlook
Earnings per Share Outlook
First Quarter Fiscal 2025
Sales Outlook
Earnings per Share Outlook
Reconciliation between GAAP and Non-GAAP - Net Sales Growth | ||||
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| Three Months Ending | Twelve Months Ending | ||
| September 30, 2024 (F) | June 30, 2025 (F) | ||
As Reported - GAAP | (5%) - (3 | %) | (1%) - 2 | % |
Impact of foreign currency translation | — | — | ||
Returns associated with restructuring and other activities | — | — | ||
Organic, Non-GAAP | (5%) - (3 | %) | (1%) - 2 | % |
(F) Represents forecast |
| Reconciliation between GAAP and Non-GAAP - Diluted Earnings Per Common Share (“EPS”) (Unaudited) | ||||||||||||
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| Three Months Ending | Twelve Months Ending | ||||||||||
| September 30 |
| June 30 |
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| 2024 (F) | 2023 | Growth | 2025 (F) | 2024 | Growth | ||||||
Forecasted/As Reported EPS - GAAP | $(.09) - $.00 | $ | .09 | (100+)% | $2.52 - $2.76 | $ | 1.08 | 100+% | ||||
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Non-GAAP |
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Restructuring and other charges | .10 - .11 |
| — |
| .19 - .23 |
| .27 |
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Change in fair value of DECIEM acquisition- |
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related stock options inclusive of payroll tax |
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(less the portion attributable to redeemable |
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noncontrolling interest) | — |
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| .02 |
| — |
| .05 |
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Goodwill and other intangible asset impairments | — |
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| — |
| — |
| 1.19 |
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Forecasted/Adjusted EPS - Non-GAAP | $.02 - $.10 | $ | .11 | (82%) - (10%) | $2.75 - $2.95 | $ | 2.59 | 6% - 14% | ||||
Impact of foreign currency translation | (.01 | ) |
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| .03 |
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Forecasted/Adjusted Constant CurrencyEPS - |
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Non-GAAP | $.01 - $.09 | $ | .11 | (89%) - (17%) | $2.78 - $2.98 | $ | 2.59 | 7% - 15% | ||||
(F) Represents forecast |
Conference Call The Estée Lauder Companies will host a conference call at 9:30 a.m. (ET) today, August 19, 2024 to discuss its results. The dial-in number for the call is 877-883-0383 in the U.S. or 412-902-6506 internationally (conference ID number: 8001061). The call will also be webcast live at http://www.elcompanies.com/investors/events-and-presentations.
Cautionary Note Regarding Forward-Looking Statements
Statements in this press release, in particular those in “Outlook,” as well as remarks by the CEO and other members of management, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may address the Company’s expectations regarding sales, earnings or other future financial performance and liquidity, other performance measures, product introductions, entry into new geographic regions, information technology initiatives, new methods of sale, the Company’s long-term strategy, restructuring and other charges and resulting cost savings, and future operations or operating results. These statements may contain words like “expect,” “will,” “will likely result,” “would,” “believe,” “estimate,” “planned,” “plans,” “intends,” “may,” “should,” “could,” “anticipate,” “estimate,” “project,” “projected,” “forecast,” and “forecasted” or similar expressions. Although the Company believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, actual results may differ materially from the Company’s expectations.
Factors that could cause actual results to differ from expectations include, without limitation: | ||
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(1) | increased competitive activity from companies in the skin care, makeup, fragrance and hair care businesses; | |
(2) | the Company’s ability to develop, produce and market new products on which future operating results may depend and to successfully address challenges in the Company’s business; | |
(3) | consolidations, restructurings, bankruptcies and reorganizations in the retail industry causing a decrease in the number of stores that sell the Company’s products, an increase in the ownership concentration within the retail industry, ownership of retailers by the Company’s competitors or ownership of competitors by the Company’s customers that are retailers and the Company’s inability to collect receivables; | |
(4) | destocking and tighter working capital management by retailers; | |
(5) | the success, or changes in timing or scope, of new product launches and the success, or changes in timing or scope, of advertising, sampling and merchandising programs; | |
(6) | shifts in the preferences of consumers as to where and how they shop; | |
(7) | social, political and economic risks to the Company’s foreign or domestic manufacturing, distribution and retail operations, including changes in foreign investment and trade policies and regulations of the host countries and of the United States; | |
(8) | changes in the laws, regulations and policies (including the interpretations and enforcement thereof) that affect, or will affect, the Company’s business, including those relating to its products or distribution networks, changes in accounting standards, tax laws and regulations, environmental or climate change laws, regulations or accords, trade rules and customs regulations, and the outcome and expense of legal or regulatory proceedings, and any action the Company may take as a result; | |
(9) | foreign currency fluctuations affecting the Company’s results of operations and the value of its foreign assets, the relative prices at which the Company and its foreign competitors sell products in the same markets and the Company’s operating and manufacturing costs outside of the United States; | |
(10) | changes in global or local conditions, including those due to volatility in the global credit and equity markets, natural or man-made disasters, real or perceived epidemics, supply chain challenges, inflation, or increased energy costs, that could affect consumer purchasing, the willingness or ability of consumers to travel and/or purchase the Company’s products while traveling, the financial strength of the Company’s customers, suppliers or other contract counterparties, the Company’s operations, the cost and availability of capital which the Company may need for new equipment, facilities or acquisitions, the returns that the Company is able to generate on its pension assets and the resulting impact on funding obligations, the cost and availability of raw materials and the assumptions underlying the Company’s critical accounting estimates; | |
(11) | shipment delays, commodity pricing, depletion of inventory and increased production costs resulting from disruptions of operations at any of the facilities that manufacture the Company’s products or at the Company’s distribution or inventory centers, including disruptions that may be caused by the implementation of information technology initiatives, or by restructurings; | |
(12) | real estate rates and availability, which may affect the Company’s ability to increase or maintain the number of retail locations at which the Company sells its products and the costs associated with the Company’s other facilities; | |
(13) | changes in product mix to products which are less profitable; | |
(14) | the Company’s ability to acquire, develop or implement new information technology, including operational technology and websites, on a timely basis and within the Company’s cost estimates; to maintain continuous operations of its new and existing information technology; and to secure the data and other information that may be stored in such technologies or other systems or media; | |
(15) | the Company’s ability to capitalize on opportunities for improved efficiency, such as publicly-announced strategies and restructuring and cost-savings initiatives, and to integrate acquired businesses and realize value therefrom; | |
(16) | consequences attributable to local or international conflicts around the world, as well as from any terrorist action, retaliation and the threat of further action or retaliation; | |
(17) | the timing and impact of acquisitions, investments and divestitures; and | |
(18) | additional factors as described in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2023. | |
|
| |
The Company assumes no responsibility to update forward-looking statements made herein or otherwise. |
The Estée Lauder Companies Inc. is one of the world’s leading manufacturers, marketers and sellers of quality skin care, makeup, fragrance and hair care products, and is a steward of luxury and prestige brands globally. The Company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, La Mer, Bobbi Brown Cosmetics, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, TOM FORD, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+, and the DECIEM family of brands, including The Ordinary and NIOD.
ELC-F
ELC-E
CONSOLIDATED STATEMENT OF EARNINGS | |||||||||||||||||
|
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|
|
|
|
|
| ||||||||||
| Three Months Ended | Percentage |
| Year Ended | Percentage | ||||||||||||
($ in millions, except per share data) | 2024 | 2023 |
| 2024 | 2023 | ||||||||||||
Net sales(A) | $ | 3,871 |
| $ | 3,609 |
| 7 | % |
| $ | 15,608 |
| $ | 15,910 |
| (2 | )% |
Cost of sales (A) |
| 1,093 |
|
| 1,163 |
| (6 | ) |
|
| 4,424 |
|
| 4,564 |
| (3 | ) |
Gross profit |
| 2,778 |
|
| 2,446 |
| 14 |
|
|
| 11,184 |
|
| 11,346 |
| (1 | ) |
Gross margin |
| 71.8 | % |
| 67.8 | % |
|
|
| 71.7 | % |
| 71.3 | % |
| ||
Operating expenses |
|
|
|
|
|
|
| ||||||||||
Selling, general and administrative (B) |
| 2,444 |
|
| 2,420 |
| 1 |
|
|
| 9,621 |
|
| 9,575 |
| — |
|
Restructuring and other charges (A) |
| 96 |
|
| 31 |
| 100 | + |
|
| 122 |
|
| 55 |
| 100 | + |
Goodwill impairment (C) |
| 291 |
|
| — |
| (100 | ) |
|
| 291 |
|
| — |
| (100 | ) |
Impairment of other intangible assets (C) |
| 180 |
|
| — |
| (100 | ) |
|
| 180 |
|
| 207 |
| (13 | ) |
Total operating expenses |
| 3,011 |
|
| 2,451 |
| 23 |
|
|
| 10,214 |
|
| 9,837 |
| 4 |
|
Operating expense margin |
| 77.8 | % |
| 67.9 | % |
|
|
| 65.4 | % |
| 61.8 | % |
| ||
Operating income (loss) |
| (233 | ) |
| (5 | ) | (100 | +) |
|
| 970 |
|
| 1,509 |
| (36 | ) |
Operating income (loss) margin |
| (6.0 | )% |
| (0.1 | )% |
|
|
| 6.2 | % |
| 9.5 | % |
| ||
Interest expense |
| 91 |
|
| 99 |
| (8 | ) |
|
| 378 |
|
| 255 |
| 48 |
|
Interest income and investment income, net |
| 41 |
|
| 53 |
| (23 | ) |
|
| 167 |
|
| 131 |
| 27 |
|
Other components of net periodic benefit cost |
| (4 | ) |
| (3 | ) | (33 | ) |
|
| (13 | ) |
| (12 | ) | (8 | ) |
Earnings (loss) before income taxes |
| (279 | ) |
| (48 | ) | (100 | +) |
|
| 772 |
|
| 1,397 |
| (45 | ) |
Provision for income taxes |
| 7 |
|
| (16 | ) | 100 | + |
|
| 363 |
|
| 387 |
| (6 | ) |
Net earnings (loss) |
| (286 | ) |
| (32 | ) | (100 | +) |
|
| 409 |
|
| 1,010 |
| (60 | ) |
Net loss (earnings) attributable to redeemable | |||||||||||||||||
noncontrolling interest |
| 2 |
|
| (1 | ) | 100 | + |
|
| (19 | ) |
| (4 | ) | (100 | +) |
Net earnings (loss) attributable to The Estée Lauder | |||||||||||||||||
Companies Inc. | $ | (284 | ) | $ | (33 | ) | (100 | +)% |
| $ | 390 |
| $ | 1,006 |
| (61 | )% |
|
|
|
|
|
|
|
| ||||||||||
Net earnings (loss) attributable to The Estée Lauder | |||||||||||||||||
Companies Inc. per common share |
|
|
|
|
|
|
| ||||||||||
Basic | $ | (.79 | ) | $ | (.09 | ) | (100 | +)% |
| $ | 1.09 |
| $ | 2.81 |
| (61 | )% |
Diluted | $ | (.79 | ) | $ | (.09 | ) | (100 | +)% |
| $ | 1.08 |
| $ | 2.79 |
| (61 | )% |
|
|
|
|
|
|
|
| ||||||||||
Weighted-average common shares outstanding |
|
|
|
|
|
|
| ||||||||||
Basic |
| 359.4 |
|
| 358.3 |
|
|
|
| 359.0 |
|
| 357.9 |
|
| ||
Diluted |
| 359.4 |
|
| 358.3 |
|
|
|
| 360.8 |
|
| 360.9 |
|
| ||
|
|
|
|
|
|
|
|
(A) As a component of the Profit Recovery Plan, now known as the Profit Recovery and Growth Plan, communicated on November 1, 2023, on February 5, 2024, the Company announced a two-year restructuring program. The restructuring program’s main focus includes the reorganization and rightsizing of certain areas of the Company’s business as well as simplification and acceleration of processes. The Company plans to substantially complete specific initiatives under the restructuring program through fiscal 2026. The Company expects that the restructuring program will result in restructuring and other charges totaling between $500 million and $700 million, before taxes, consisting of employee-related costs, contract terminations, asset write-offs and other costs associated with implementing these initiatives. |
|
The Company approved specific initiatives under the Post-COVID Business Acceleration Program (the “PCBA Program”) through fiscal 2022 and has substantially completed those initiatives through fiscal 2023. Additional information about the PCBA Program is included in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2023. |
|
(B) For the three and twelve months ended June 30, 2024, the Company recorded $15 million ($11 million, less the portion attributable to redeemable noncontrolling interest and net of tax, or $.03 per common share) and $23 million ($18 million, less the portion attributable to redeemable noncontrolling interest and net of tax, or $.05 per common share), respectively, of expense related to the change in fair value of DECIEM acquisition-related stock options inclusive of payroll tax. For the three and twelve months ended June 30, 2023, the Company recorded $24 million ($19 million, less the portion attributable to redeemable noncontrolling interest and net of tax, or $.05 per common share) and $22 million ($17 million, less the portion attributable to redeemable noncontrolling interest and net of tax, or $.05, respectively, of expense related to the change in fair value of DECIEM acquisition-related stock options. |
|
(C) Based on the Company’s annual goodwill and other indefinite-lived intangible asset impairment testing as of April 1, 2024, the Company determined that the carrying value of the Dr.Jart+ reporting unit and trademark exceeded their estimated fair values. Given the lower-than-expected growth within key geographic regions, the reporting unit has made a strategic shift in its operating plan to exit the travel retail channel. This revised strategy also includes increased direct investment in other areas of the business, including in China, to support the brand’s future growth. As a result of these changes in strategy, the Company made revisions to the internal forecasts relating to the Dr.Jart+ reporting unit which were finalized and approved in the fiscal 2024 fourth quarter, and reflected in the goodwill and other indefinite-lived intangible asset impairment testing as of April 1, 2024. These changes in circumstances were also indicators that the carrying amounts of its respective long-lived assets may not be recoverable. The Company concluded that the carrying value of the trademark intangible asset exceeded its estimated fair value, which was determined utilizing the relief-from-royalty method to determine discounted projected future cash flows and recorded an impairment charge of $180 million. The Company then performed a recoverability analysis of the Dr.Jart+ long-lived asset group and, based on the estimated undiscounted cash flows of the asset group, concluded that the carrying amount of the long-lived assets were recoverable. After adjusting the carrying value of the trademark, the Company completed a quantitative impairment test for goodwill. As the carrying value of the reporting unit exceeded its estimated fair value, the Company recorded a goodwill impairment charge of $291 million. The estimated fair value of the reporting unit was based upon an equal weighting of the income and market approaches, utilizing estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of the cash flows, as well as valuation multiples derived from comparable publicly traded companies that are applied to operating performance of the reporting unit. The significant assumptions used in these approaches include revenue growth rates and profit margins, terminal value, weighted average cost of capital used to discount future cash flows, comparable market multiples for the reporting unit, and royalty rate for the trademark. The most significant unobservable input used to estimate the fair value of the reporting unit and trademark intangible asset was the weighted-average cost of capital, which was 10.5%. For the three and twelve months ended June 30, 2024, goodwill impairment charges were $291 million and other intangible asset impairment charges were $180 million (combined $430 million, net of tax), with a combined impact of $1.19 per common share. |
|
During the fiscal 2023 second quarter, given the lower-than-expected results in the overall business, the Company made revisions to the internal forecasts relating to its Smashbox reporting unit. The Company concluded that the changes in circumstances in the reporting unit triggered the need for an interim impairment review of its trademark intangible asset. The remaining carrying value of the trademark intangible asset was not recoverable and the Company recorded an impairment charge of $21 million reducing the carrying value to zero. |
|
During the fiscal 2023 second quarter, the Dr.Jart+ reporting unit experienced lower-than-expected growth within key geographic regions and channels that continue to be impacted by the spread of COVID-19 variants, resurgence in cases, and the potential future impacts relating to the uncertainty of the duration and severity of COVID-19 impacting the financial performance of the reporting unit. In addition, due to macro-economic factors, Dr.Jart+ has experienced lower-than-expected growth within key geographic regions. The Too Faced reporting unit experienced lower-than-expected results in key geographic regions and channels coupled with delays in future international expansion to areas that continue to be impacted by COVID-19. As a result, the Company made revisions to the internal forecasts relating to its Dr.Jart+ and Too Faced reporting units. Additionally, there were increases in the weighted average cost of capital for both reporting units as compared to the prior year annual goodwill and other indefinite-lived intangible asset impairment testing as of April 1, 2022. |
|
The Company concluded that the changes in circumstances in the reporting units, along with increases in the weighted average cost of capital, triggered the need for interim impairment reviews of their trademarks and goodwill. These changes in circumstances were also an indicator that the carrying amounts of Dr.Jart+’s and Too Faced’s long-lived assets, including customer lists, may not be recoverable. Accordingly, the Company performed interim impairment tests for the trademarks and a recoverability test for the long-lived assets as of November 30, 2022. The Company concluded that the carrying value of the trademark intangible assets exceeded their estimated fair values, which were determined utilizing the relief-from-royalty method to determine discounted projected future cash flows and recorded an impairment charge of $100 million for Dr.Jart+ and $86 million for Too Faced. The Company concluded that the carrying amounts of the long-lived assets were recoverable. After adjusting the carrying values of the trademarks, the Company completed interim quantitative impairment tests for goodwill. As the estimated fair value of the Dr.Jart+ and Too Faced reporting units were in excess of their carrying values, the Company concluded that the carrying amounts of the goodwill were recoverable and did not record a goodwill impairment charge related to these reporting units. The fair values of these reporting units were based upon an equal weighting of the income and market approaches, utilizing estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of the cash flows, as well as valuation multiples derived from comparable publicly traded companies that are applied to operating performance of the reporting units. The significant assumptions used in these approaches include revenue growth rates and profit margins, terminal values, weighted average cost of capital used to discount future cash flows and royalty rates for trademarks. The most significant unobservable input used to estimate the fair values of the Dr.Jart+ and Too Faced trademark intangible assets was the weighted average cost of capital, which was 11% and 13%, respectively. |
|
For the twelve months ended June 30, 2023, other intangible asset impairment charges were $207 million ($159 million, net of tax), with an impact of $.44 per common share. |
Returns and Charges Associated With Restructuring and Other Activities and Other Adjustments | |||||||||||||||||||||
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| ||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||
| Sales | Cost of | Operating Expenses | Total | After | Diluted | |||||||||||||||
(In millions, except per share data) | Restructuring | Other Charges/ | |||||||||||||||||||
Leading Beauty Forward | $ | — | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | $ | (1 | ) | $ | — | ||||
PCBA Program |
| — |
| — |
| (3 | ) |
| 2 |
| (1 | ) |
| (1 | ) |
| — | ||||
Restructuring Program Component of Profit | |||||||||||||||||||||
Recovery Plan |
| — |
| — |
| 86 |
|
| 12 |
| 98 |
|
| 77 |
|
| .21 | ||||
Change in fair value of DECIEM acquisition-related | |||||||||||||||||||||
stock options inclusive of payroll tax |
| — |
| — |
| — |
|
| 15 |
| 15 |
|
| 11 |
|
| .03 | ||||
Goodwill and other intangible asset impairments |
| — |
| — |
| — |
|
| 471 |
| 471 |
|
| 430 |
|
| 1.19 | ||||
Total | $ | — | $ | — | $ | 82 |
| $ | 500 | $ | 582 |
| $ | 516 |
| $ | 1.43 | ||||
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|
|
|
|
| ||||||||||||||
| Year Ended June 30, 2024 | ||||||||||||||||||||
| Sales | Cost of | Operating Expenses | Total | After | Diluted | |||||||||||||||
(In millions, except per share data) | Restructuring | Other Charges/ | |||||||||||||||||||
Leading Beauty Forward | $ | — | $ | — | $ | (1 | ) | $ | — | $ | (1 | ) | $ | (1 | ) | $ | — | ||||
PCBA Program |
| 1 |
| 1 |
| 1 |
|
| 7 |
| 10 |
|
| 8 |
|
| .02 | ||||
Restructuring Program Component of Profit | |||||||||||||||||||||
Recovery Plan |
| — |
| — |
| 92 |
|
| 23 |
| 115 |
|
| 90 |
|
| .25 | ||||
Change in fair value of DECIEM acquisition-related | |||||||||||||||||||||
stock options inclusive of payroll tax |
| — |
| — |
| — |
|
| 23 |
| 23 |
|
| 18 |
|
| .05 | ||||
Goodwill and other intangible asset impairments |
| — |
| — |
| — |
|
| 471 |
| 471 |
|
| 430 |
|
| 1.19 | ||||
Total | $ | 1 | $ | 1 | $ | 92 |
| $ | 524 | $ | 618 |
| $ | 545 |
| $ | 1.51 |
| Three Months Ended June 30, 2023 | ||||||||||||||||||||
| Sales | Cost of | Operating Expenses | Total | After | Diluted | |||||||||||||||
(In millions, except per share data) | Restructuring | Other Charges/ | |||||||||||||||||||
Leading Beauty Forward | $ | — | $ | — | $ | — | $ | 3 | $ | 3 | $ | 1 | $ | — | |||||||
PCBA Program |
| 17 |
| 4 |
| 23 |
| 5 |
| 49 |
| 40 |
| .11 | |||||||
Change in fair value of DECIEM acquisition-related | |||||||||||||||||||||
stock options |
| — |
| — |
| — |
| 24 |
| 24 |
| 19 |
| .05 | |||||||
Total | $ | 17 | $ | 4 | $ | 23 | $ | 32 | $ | 76 | $ | 60 | $ | .16 | |||||||
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| ||||||||||||||
| Year Ended June 30, 2023 | ||||||||||||||||||||
| Sales | Cost of | Operating Expenses | Total | After | Diluted | |||||||||||||||
(In millions, except per share data) | Restructuring | Other Charges/ | |||||||||||||||||||
Leading Beauty Forward | $ | — | $ | — | $ | 1 | $ | 7 | $ | 8 | $ | 6 | $ | .02 | |||||||
PCBA Program |
| 27 |
| 3 |
| 35 |
| 12 |
| 77 |
| 60 |
| .16 | |||||||
Change in fair value of DECIEM acquisition-related | |||||||||||||||||||||
stock options |
| — |
| — |
| — |
| 22 |
| 22 |
| 17 |
| .05 | |||||||
Other intangible asset impairments |
| — |
| — |
| — |
| 207 |
| 207 |
| 159 |
| .44 | |||||||
Total | $ | 27 | $ | 3 | $ | 36 | $ | 248 | $ | 314 | $ | 242 | $ | .67 |
This earnings release includes some non-GAAP financial measures relating to charges associated with restructuring and other activities and adjustments, as well as organic net sales. Included herein are reconciliations between the non-GAAP financial measures and the most directly comparable GAAP measures for certain consolidated statements of earnings accounts before and after these items. The Company uses certain non-GAAP financial measures, among other financial measures, to evaluate its operating performance, which represent the manner in which the Company conducts and views its business. Management believes that excluding certain items that are not comparable from period-to-period, or do not reflect the Company’s underlying ongoing business, provides transparency for such items and helps investors and others compare and analyze operating performance from period-to-period. In the future, the Company expects to incur charges or make adjustments similar in nature to those presented herein; however, the impact to the Company’s results in a given period may be highly variable and difficult to predict. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by, or determined in a manner consistent with, other companies. While the Company considers the non-GAAP measures useful in analyzing its results, they are not intended to replace, or act as a substitute for, any presentation included in the consolidated financial statements prepared in conformity with GAAP.
The Company operates on a global basis, with the majority of its net sales generated outside the United States. Accordingly, fluctuations in foreign currency exchange rates can affect the Company’s results of operations. Therefore, the Company presents certain net sales, operating results and diluted net earnings per common share information excluding the effect of foreign currency rate fluctuations to provide a framework for assessing the performance of its underlying business outside the United States. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company calculates constant currency information by translating current-period results using prior-year period monthly average foreign currency exchange rates and adjusting for the period-over-period impact of foreign currency cash flow hedging activities.
Reconciliation of Certain Consolidated Statements of Earnings Accounts | ||||||||||||||||||||||||||||
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| Three Months Ended June 30 |
|
| |||||||||||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||||||||||||
($ in millions, except per share data) | As | Returns/ | Non- | Impact of | Non- | As | Returns/ | Non- | Non- | Non- | ||||||||||||||||||
Net sales | $ | 3,871 |
| $ | — | $ | 3,871 | $ | 51 | $ | 3,922 | $ | 3,609 |
| $ | 17 | $ | 3,626 | 7 | % | 8 | % | ||||||
Gross profit |
| 2,778 |
|
| — |
| 2,778 |
| 41 |
| 2,819 |
| 2,446 |
|
| 21 |
| 2,467 | 13 | % | 14 | % | ||||||
Operating (loss) | ||||||||||||||||||||||||||||
income |
| (233 | ) |
| 582 |
| 349 |
| 10 |
| 359 |
| (5 | ) |
| 76 |
| 71 | 100 | +% | 100 | +% | ||||||
Diluted EPS | $ | (.79 | ) | $ | 1.43 | $ | .64 | $ | .03 | $ | .67 | $ | (.09 | ) | $ | .16 | $ | .07 | 100 | +% | 100 | +% | ||||||
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|
Reconciliation of Certain Consolidated Statements of Earnings Accounts | ||||||||||||||||||||||||||||
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| ||||||||||||||||||
| Year Ended June 30 |
| ||||||||||||||||||||||||||
| 2024 | 2023 | % Change | |||||||||||||||||||||||||
($ in millions, except per share data) | As | Returns/ | Non- | Impact of | Non- | As | Returns/ | Non- | Non- | Non- | ||||||||||||||||||
Net sales | $ | 15,608 | $ | 1 | $ | 15,609 | $ | 105 | $ | 15,714 | $ | 15,910 | $ | 27 | $ | 15,937 | (2 | )% | (1 | )% | ||||||||
Gross profit |
| 11,184 |
| 2 |
| 11,186 |
| 84 |
| 11,270 |
| 11,346 |
| 30 |
| 11,376 | (2 | )% | (1 | )% | ||||||||
Operating income |
| 970 |
| 618 |
| 1,588 |
| 50 |
| 1,638 |
| 1,509 |
| 314 |
| 1,823 | (13 | )% | (10 | )% | ||||||||
Diluted EPS | $ | 1.08 | $ | 1.51 | $ | 2.59 | $ | .10 | $ | 2.69 | $ | 2.79 | $ | .67 | $ | 3.46 | (25 | )% | (22 | )% | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
|
|
| ||||
| June 30, | June 30, | ||||
($ in millions) | (Audited) | |||||
ASSETS |
|
| ||||
|
|
| ||||
Cash and cash equivalents | $ | 3,395 | $ | 4,029 | ||
Accounts receivable, net |
| 1,727 |
| 1,452 | ||
Inventory and promotional merchandise |
| 2,175 |
| 2,979 | ||
Prepaid expenses and other current assets |
| 625 |
| 679 | ||
Total current assets |
| 7,922 |
| 9,139 | ||
Property, plant and equipment, net |
| 3,136 |
| 3,179 | ||
Operating lease right-of-use assets |
| 1,833 |
| 1,797 | ||
Other assets |
| 8,786 |
| 9,300 | ||
Total assets | $ | 21,677 | $ | 23,415 | ||
|
|
| ||||
LIABILITIES AND EQUITY |
|
| ||||
|
|
| ||||
Current debt | $ | 504 | $ | 997 | ||
Accounts payable |
| 1,440 |
| 1,670 | ||
Operating lease liabilities |
| 354 |
| 357 | ||
Other accrued liabilities |
| 3,404 |
| 3,216 | ||
Total current liabilities |
| 5,702 |
| 6,240 | ||
Long-term debt |
| 7,267 |
| 7,117 | ||
Long-term operating lease liabilities |
| 1,701 |
| 1,698 | ||
Other noncurrent liabilities |
| 1,693 |
| 1,943 | ||
Total noncurrent liabilities |
| 10,661 |
| 10,758 | ||
Redeemable noncontrolling interest |
| — |
| 832 | ||
Total equity |
| 5,314 |
| 5,585 | ||
Total liabilities and equity | $ | 21,677 | $ | 23,415 |
SELECT CASH FLOW DATA | ||||||
|
|
| ||||
| Twelve Months Ended | |||||
($ in millions) | 2024 | 2023 | ||||
Net earnings | $ | 409 |
| $ | 1,010 |
|
Adjustments to reconcile net earnings to net cash flows from operating | ||||||
activities: |
|
| ||||
Depreciation and amortization |
| 825 |
|
| 744 |
|
Deferred income taxes |
| (265 | ) |
| (186 | ) |
Goodwill and other intangible asset impairments |
| 471 |
|
| 207 |
|
Other items |
| 289 |
|
| 312 |
|
Changes in operating assets and liabilities: |
|
| ||||
Decrease (increase) in accounts receivable, net |
| (285 | ) |
| 185 |
|
Decrease (increase) in inventory and promotional merchandise |
| 766 |
|
| (64 | ) |
Decrease in other assets, net |
| 15 |
|
| 26 |
|
Increase (decrease) in accounts payable and other liabilities |
| 135 |
|
| (503 | ) |
Net cash flows provided by operating activities | $ | 2,360 |
| $ | 1,731 |
|
|
|
| ||||
Other Investing and Financing Sources (Uses): |
|
| ||||
Capital expenditures | $ | (919 | ) | $ | (1,003 | ) |
Settlement of net investment hedges |
| (23 | ) |
| 80 |
|
Purchases of other intangible assets |
| — |
|
| (2,286 | ) |
Purchases of investments |
| (18 | ) |
| (8 | ) |
Payments to acquire treasury stock |
| (35 | ) |
| (271 | ) |
Dividends paid |
| (947 | ) |
| (925 | ) |
Proceeds (repayments) of current debt, net |
| (215 | ) |
| 218 |
|
Proceeds from issuance of commercial paper (maturities after three months) |
| — |
|
| 765 |
|
Repayments of commercial paper (maturities after three months) |
| (785 | ) |
| — |
|
Proceeds from issuance of long-term debt, net |
| 648 |
|
| 1,995 |
|
Repayments and redemptions of long-term debt |
| (10 | ) |
| (265 | ) |
Payments for acquisition of redeemable noncontrolling interest |
| (745 | ) |
| — |
|
View source version on businesswire.com:https://www.businesswire.com/news/home/20240819392314/en/
CONTACT: Investors:Rainey Mancini
rmancini@estee.com
Media:Jill Marvin
jimarvin@estee.com
KEYWORD: UNITED STATES NORTH AMERICA NEW YORK
INDUSTRY KEYWORD: FASHION COSMETICS ONLINE RETAIL RETAIL LUXURY DEPARTMENT STORES
SOURCE: The Estée Lauder Companies Inc.
Copyright Business Wire 2024.
PUB: 08/19/2024 06:45 AM/DISC: 08/19/2024 06:46 AM
http://www.businesswire.com/news/home/20240819392314/en