Estée Lauder 2023 FY Q3 Net Sales Down 12%
- Chaileedo Press
- May 4, 2023
- 2 min read
Estée Lauder released its Q3 report of 2023 fiscal year. The global beauty giant reported $3.75 billion in net sales, down 12% compared to the same period of 2022. The company now expects a decline in sales between 10% and 12% in 2023 fiscal year, due to the slow recovery in Asia travel retail.
Estée Lauder released its Q3 report of 2023 fiscal year. The global beauty giant reported $3.75 billion in net sales in Q3, down 11.64% compared to the same period of 2022. The company’s operating income reached $297 million, saw decrease of 73.31%. While the net earnings of Estée Lauder decreased by 72.95% to $155 million.
Estée Lauder reported an 8% decrease in organic net sales, with the decline being mainly driven by Asia travel retail in Hainan and Korea. The negative impact on the company's Asia travel retail business was partially offset by organic net sales growth in almost every market. This includes both developed markets as well as emerging markets globally.
In terms of business segments, Skin Care net sales declined 17%, primarily reflecting the slower than anticipated recovery of Asia travel retail from the COVID-19 pandemic. Makeup net sales down 2%, were negatively impacted by the challenges in Asia travel retail. Fragrance net sales grew double digits, reflecting strong growth in every region and double-digit growth from TOM FORD Beauty, Le Labo and Estée Lauder.
In terms of geographic region, net sales rose 6% in the Americas, returning to growth and benefiting from increases in Makeup, Skin Care and Fragrance. While in Europe, the Middle East & Africa, Estée Lauder saw a decline of 24% in net sales, which was primarily due to the slower-than-expected recovery of Asia travel retail from the impact of the COVID-19 pandemic.
In Asia/Pacific, the company saw a 7% growth in net sales, which was primarily driven by the ongoing recovery from eased COVID-related restrictions as compared to the previous year. This growth was led by markets such as Hong Kong, Australia, Japan, and mainland China.
Estée Lauder now expects a decline in sales between 10% and 12% in 2023 fiscal year, due to the slow recovery in Asia travel retail.
Estée Lauder said the company saw recovery in many markets globally, Asia travel retail business continued to be pressured by the slower than anticipated recovery from the COVID-19 pandemic, especially in Hainan and Korea.
“Our developed and emerging markets grew strongly and exceeded our expectations to offset an even slower-than-expected recovery in Asia travel retail. Each of The Americas and Asia/Pacific returned to organic sales growth, bolstered by increases in the United States and China, while the markets of EMEA continued to prosper.” President and CEO Fabrizio Freda said.
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