Karishma Vanjani

Estée Lauder expects earnings to be lower this year compared with the last as sales fell across all categories and its Asia business continued to struggle.

The cosmetics company posted adjusted earnings early Thursday that came in at 65 cents per share for its third fiscal quarter, ended March 31 -- well above the consensus estimate of 31 cents among analysts tracked by FactSet. Sales of $3.6 billion topped the $3.52 billion estimate, but were 10% lower than a year ago.

Considering currency impacts, the company's skincare and haircare segments suffered the most with sales falling 11% and 10%, respectively. Makeup sales declined 7% and they were 1% lower for the Fragrance category 1%.

Net sales were also lower across regions with Europe, the Middle East & Africa posting the biggest decline of 16% considering currency changes. Asia suffered a 1% fall in sales, where political and social unrest in South Korea has hit retail traffic. The company's bet on Asia hasn't paid off -- sales have fallen year over year in each quarter for almost two years.

Estée Lauder said it expects earnings per share of between $1.33 and $1.58 in its full fiscal year, adjusted for currency changes and other charges. The forecast is weaker than last year's $2.59 per share, but the midpoint of the range is ahead of the $1.39 analysts forecast.

The stock was broadly flat in premarket trading at $60.41

Write to Karishma Vanjani at karishma.vanjani@dowjones.com.

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May 01, 2025 08:45 ET (12:45 GMT)

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