Estee Lauder forecasts weaker annual sales, profit on slow recovery in Asia travel retail
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Cosmetics maker Estee Lauder expects full-year 2024 sales to rise between 5 per cent and 7 per cent.
PHOTO: REUTERS
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BENGALURU - Estee Lauder projected full-year net sales and profit below market expectations on Friday, signalling a slower-than-expected recovery in its travel retail business, mainly in Asia, and easing demand in the United States.
Major companies across the globe have taken a cautious stance regarding their bets on a rebound in China, as the world’s second-largest economy struggles to revive demand and battles rising youth unemployment rates and a high cost of living.
Analysts have said the drop in consumer demand in China and a slow recovery in Asia travel retail - sales made at airports or travel destinations like Korea and China’s Hainan - could impact luxury companies like Estee, which makes about 30 per cent of its annual revenue from the Asia Pacific region.
The cosmetics maker expects full-year 2024 sales to rise between 5 per cent and 7 per cent, compared with analysts’ estimate of an 8.8 per cent increase, according to Refinitiv IBES data.
The MAC brand owner expects full-year 2024 adjusted profit per share to be between US$3.50 and US$3.75, compared with analysts’ expectation of US$4.83.
The company’s net sales rose to US$3.61 billion (S$4.9 billion) in the fourth quarter, from US$3.56 billion a year earlier. Analysts had expected revenue of US$3.47 billion. REUTERS
