Cosmetics Maker Estee Lauder Boosts FY22 Forecast, Q2 Earnings Beat Expectations

Estée Lauder Companies Inc EL reported Q2 FY22 sales of $5.54 billion, an increase of 14%, beating the consensus of $5.50 billion.

• Net sales grew in every region and product category, reflecting early stages of recovery in brick-and-mortar retail stores, primarily in western markets, and strength in online. Organic net sales increased 11%.
• The owner of Clinique has increased its digital presence and rolled out features such as virtual try-on to sidestep disruptions caused by a resurgence in COVID-19 cases.
• After the easing of pandemic restrictions, sales of its MAC lipsticks and Jo Malone London perfumes have also risen in Europe and North America.
• Adjusted EPS of $3.01 increased 15% on a reported basis and in constant currency, beating the consensus of $2.64.
• Guidance: Estee Lauder raised its FY22 revenue and profit forecasts, betting on strong demand for its Clinique skincare and Tom Ford fragrance products in Western markets.
• The Company expects annual net sales to rise between 13% and 16%, compared with its previous forecast of a 12% to 15% increase.
• It estimates an adjusted EPS of $7.43 - $7.58 per share, compared to its prior outlook of $7.23 and $7.38.
• For Q3 FY22, the Company expects sales growth of 10% - 12% Y/Y, with adjusted EPS of $1.55 - $1.65.
• Price Action: EL shares are up 0.26% at $320.00 during the premarket session on the last check Thursday.