Cosmetics Maker Estee Lauder Reports Mixed Q3 Results; Cuts FY22 Outlook - Estee Lauder Cos (NYSE:EL)

Estee Lauder Companies Inc EL reported third-quarter FY22 sales growth of 9.99% year-on-year to $4.25 billion, missing the consensus of $4.31 billion. Organic net sales increased 9%.
Sales in the Americas increased 15% Y/Y, Europe, Middle East & Africa rose 17%, and Asia/Pacific fell 4%.
Net sales from Skin Care rose 6%, Makeup improved 9%, Fragrance gained 28%, and Hair Care increased 15%.
Gross profit rose 11% Y/Y to $3.3 billion, with the margin expanding 90 basis points to 76.6%.
Operating expenses increased 9% Y/Y to $2.5 billion while the operating expense margin was 59.2%, versus 59.8% last year.
Operating margin expanded 150 basis points to 17.4%, and operating income for the quarter rose 20% Y/Y to $738 million.
The company held $3.8 billion in cash and equivalents as of March 31, 2022.
Adjusted EPS of $1.90 beat the analyst consensus of $1.67.
The company has revised its outlook to include the impact of COVID-related restrictions in China and the invasion of Ukraine.
Outlook: Estee Lauder sees FY22 adjusted EPS of $7.05 - $7.15 (prior view $7.43 - $7.58), against the consensus of $7.57.
It expects FY22 reported net sales to increase 7% - 9% (prior view 13% - 16%) and Organic sales to increase 5% - 7% (prior view 10% - 13%).
Price Action: EL shares are trading lower by 5.99% at $245.03 on the last check Tuesday.
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