Estée Lauder: reduces FY guidance

(CercleFinance.com) - On Thursday Estée Lauder reduced its full-year guidance due to ongoing pressure on its travel retail business.


The owner of the M-A-C and Clinique brands, and now Tom Ford, said it now expects FY sales to fall by 5% to 7%, with organic growth flat to down 2%.

The US cosmetics group also estimates FY EPS (year ending June) of $4.25 to $4.44.

The New York-based company justifies its caution by the disruptions that recently affected its travel retail business in Hainan, a tourist destination in China, and by the tightening of sanitary measures in Korea, which affected its duty free business in the country.

In Q2 to end-December, Estée Lauder said it had already seen its revenue fall 17% to 4.62 billion dollars, including an 11% decline in organic terms, mainly due to the deteriorating health situation in China.

EPS for the period reached $1.09, below the consensus of $1.30.

Following these announcements, the company's share price fell by nearly 3% in pre-market trading on Thursday.


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