The Estee Lauder Companies Inc (NYSE:EL) shares are shooting premarket today after the company reported better-than-expected second-quarter FY24 results.
The company reported a sales decline of 7% Y/Y to $4.279 billion, beating the analyst consensus estimate of $4.194 billion.
Organic net sales declined 8% Y/Y, primarily due to challenges in Asia travel retail and continued weakness in overall prestige beauty in Mainland China.
By geographies, organic sales in the Americas fell 1% Y/Y due to a decline in North America; Europe, Middle East & Africa dropped 14% Y/Y; and Asia/Pacific fell 7% Y/Y.
By product category, organic sales in Skin Care fell 10% Y/Y, Makeup declined 8% Y/Y, Hair Care decreased 6% Y/Y, and Fragrance remained flat Y/Y.
Gross profit declined 8% Y/Y to $3.13 billion, with the margin contracting to 73.0% from 73.6% a year ago.
Operating expenses fell 10% Y/Y to $2.55 billion, while the operating expense margin ...