The Estee Lauder Companies has released its financial results for the fiscal year ending June 30, 2024, reporting a 2% decline in net sales, totaling $15.61 billion. Net earnings also saw a significant drop, falling to $0.39 billion from $1.01 billion in the previous year.
Sector-wise, sales in both skin care and hair care decreased by 4%, while make-up sales saw a slight decline of 1%. Fragrance sales, however, stood out with a modest 1% increase.
The company attributed its declining sales primarily to continued weakness in mainland China’s prestige beauty market and a drop in Asia travel retail, particularly during the first half of fiscal 2024.
Fabrizio Freda, President and CEO, acknowledged the challenging year, stating, “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.”
Looking ahead, Freda expressed cautious optimism for fiscal 2025, noting that while challenges persist in China’s prestige beauty sector due to weak consumer sentiment, the company plans to pursue market share gains. He also highlighted plans for improved performance across both developed and emerging markets.
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