×
1 360
Fashion Jobs
360 TALENT LONDON
Showroom Manager – Central London
Permanent · LONDON
360 TALENT LONDON
Assistant Showroom Manager – Central London
Permanent · LONDON
ESTÉE LAUDER
Operations Support Manager
Permanent · Petersfield
ESTÉE LAUDER
jo Malone London - Omnichannel Operations Manager
Permanent · London
ESTÉE LAUDER
Multi-Brand - Business Manager, 37.5 Hours - Oxford - John Lewis
Permanent · Oxford
V. F. CORPORATION
Key Account Manager
Permanent · LONDON
ESTÉE LAUDER
Clinique - Consultant - Boots Bath - 28 Hours - Permanent
Permanent · Bath
CONVERSE
Strategic Account Executive
Permanent · London
ESTÉE LAUDER
Clinique - Consultant - Boots Covent Garden, London - 20 Hours - Permanent
Permanent · London
SHISEIDO
National Account Manager
Permanent · London
TIMBERLAND
Credit Controller - French Speaking - Timberland
Permanent · CALVERTON
ESTÉE LAUDER
Clinique - Consultant - Boots Donegall, Belfast - 15 Hours - Permanent
Permanent · Belfast
ESTÉE LAUDER
Clinique - Consultant - Boots Sedley Place, London - 10 Hours - Permanent
Permanent · London
ESTÉE LAUDER
Clinique - Consultant - John Lewis Stratford, London - 10 Hours - Permanent
Permanent · London
ESTÉE LAUDER
Clinique - Consultant - Boots Durham - 6 Hours - Permanent
Permanent · Durham
ESTÉE LAUDER
Clinique - Consultant - Boots Londonderry - 11 Hours - Permanent
Permanent · Londonderry
ESTÉE LAUDER
Clinique - Consultant - Boots Kensington, London - 22.5 Hours - Permanent
Permanent · London
ESTÉE LAUDER
Clinique - Consultant - Boots Donegall, Belfast - 10 Hours - Permanent
Permanent · Belfast
BRAND STABLE LTD
Wholesale Sales Executive
Permanent · LONDON
LAIDBACK LONDON
Digital Marketing Manager
Permanent · HARROW
MARSHALLS
70118-lp Detective
Permanent · Banning
ESTÉE LAUDER
Clinique - Consultant - Boots, Watford - 22.5 Hours - Part Time, Permanent
Permanent · Watford
Advertisements
By
Reuters
Published
Oct 31, 2019
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Estee Lauder cuts profit forecast on Hong Kong, China troubles; shares fall

By
Reuters
Published
Oct 31, 2019

Estee Lauder Cos Inc cut its full-year profit forecast on Thursday as it expects to take a hit from the ongoing unrest in Hong Kong and a stronger dollar, taking the sheen off its better-than-expected results and sending its shares down 5%.




Luxury goods companies and retailers have felt the pinch from months of pro-democracy demonstrations in Hong Kong that have forced some shops to close temporarily, and kept tourists away from one of the world’s most vibrant shopping destinations.

The cosmetics maker said net sales from Hong Kong, which makes up just under 4% of its global business, had fallen 20% in the first quarter.

“Hong Kong has been difficult,” said Chief Executive Officer Fabrizio Freda on an earnings call with analysts, adding that there was no sign of improvement in the business there to date.

Estee Lauder also said it was mindful of, among other risks, moderating growth in China from recent levels, where its sales have been growing in double digits on booming demand for high-end luxury products from affluent Chinese consumers.

“Given the fact that there are global macro slowdowns, even though we haven’t, in fact, seen it in China and haven’t seen it affect our Asia business in general ... it certainly could happen,” Chief Financial Officer Tracey Travis said.

The company said it expects 2020 adjusted profit between $5.85 and $5.93 per share, down from a prior range of $5.90 to $5.98.

Estee Lauder, which generates 68% of revenue from Asia-Pacific, Europe, the Middle East and Africa market, said the strong dollar would hit its earnings by 5 cents per share.

Another sore spot for the M.A.C brand owner was its Americas business, which is being pressured by weaker customer traffic at brick-and-mortar stores as customers shift to online shopping and buying at specialty beauty shops.

“U.S. performance will remain a concern and focus for investors as market has decelerated after Estee Lauder had talked of sequential improvement in Q4,” Atlantic Equities analyst Edward Lewis said.

Sales in the U.S. market fell 6%, while operating income dropped 25%. In contrast, Asia Pacific region that accounts for a quarter of total sales rose 24% in the quarter.

Overall, net sales climbed 11% to $3.90 billion on the strength of its skin care brands like La Mer.

Excluding items, Estee Lauder earned $1.68 per share.

Analysts on average had expected revenue of $3.85 billion and adjusted profit of $1.60 per share, according to IBES data from Refinitiv.

© Thomson Reuters 2021 All rights reserved.