The earnings call reflects a challenging quarter marked by significant declines in key markets such as China and travel retail, leading to a reduction in dividends and withdrawal of the full-year outlook. However, there are positive aspects, including gross margin expansion, market share gains in strategic regions, and successful product innovations. Despite the negative external environment, the company shows resilience with focused strategic initiatives and sustainability achievements.

Company Guidance

During the Estée Lauder Companies' Q1 Fiscal 2025 earnings call, the guidance highlighted several key metrics and challenges impacting their financial outlook. The company reported a 5% decline in organic sales, primarily due to double-digit declines in Mainland China, global travel retail, and Asia, with the rest of the global business experiencing a modest 1% increase. Despite a lower total company sales level, the adjusted gross margin expanded by over 300 basis points, supported by strategic initiatives within their Profit Recovery and Growth Plan (PRGP). The adjusted EPS was reported at $0.14, surpassing the previous year's $0.11 and exceeding the high end of the outlook range by $0.04. Looking forward, Estée Lauder anticipates continued macroeconomic headwinds, particularly in the prestige beauty segment in China and Asia, leading to the withdrawal of their fiscal year 2025 outlook and a forecasted decrease in organic net sales by 6% to 8% for the second quarter. Additionally, they announced a reduction in dividends to enhance financial flexibility, reflecting both the challenging market conditions and upcoming leadership transitions.

Gross Margin Expansion

Adjusted gross margin expanded by over 300 basis points, driven by strategic initiatives under the PRGP.

Market Share Gains in Key Regions

Gained share in prestige beauty in Mainland China and became the #1 fragrance company in Japan with 200 points of market share gain in one quarter.

Successful Innovation in Skincare and Fragrance

High single-digit organic sales growth in skincare in EMEA markets, driven by innovations like Estée Lauder's advanced serum and La Mer's rejuvenated night cream.

Sustainability Achievements

Achieved carbon neutrality across Scope 1 and Scope 2 emissions for the fifth consecutive year and sourced 100% renewable electricity globally.

EPS Beat Expectations

Adjusted EPS of $0.14, exceeding the initial outlook primarily due to the timing of certain expenses.

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The Estée Lauder Companies (IT:1ELX) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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IT:1ELX Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 04, 2025	2025 (Q2)	0.30 / -	0.85	―	―	―
Oct 31, 2024	2025 (Q1)	0.09 / 0.14	0.106	27.27% (+0.03)	―
Aug 19, 2024	2024 (Q4)	0.26 / 0.62	0.068	814.29% (+0.55)	―
May 01, 2024	2024 (Q3)	0.48 / 0.94	0.454	106.38% (+0.48)	―
Feb 05, 2024	2024 (Q2)	0.55 / 0.85	1.487	-42.86% (-0.64)	―
Nov 01, 2023	2024 (Q1)	-0.20 / 0.11	1.323	-91.97% (-1.22)	―
Aug 18, 2023	2023 (Q4)	-0.04 / 0.07	0.405	-83.33% (-0.34)	―
May 03, 2023	2023 (Q3)	0.50 / 0.45	1.844	-75.39% (-1.39)	―
Feb 02, 2023	2023 (Q2)	1.25 / 1.49	2.906	-48.84% (-1.42)	―
Nov 02, 2022	2023 (Q1)	1.26 / 1.32	1.825	-27.51% (-0.50)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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IT:1ELX Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 31, 2024	€80.10	€63.44	-20.79%
Aug 19, 2024	€84.83	€84.83	0.00%
Feb 05, 2024	€119.52	€138.09	+15.53%
Nov 01, 2023	€117.58	€99.55	-15.33%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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