Estee Lauder’s sales fall short of estimates

Bloomberg

Estee Lauder Cos reported quarterly sales that came in short of analysts’ estimates despite early signs of travel bouncing back.
Sales rose in every region but didn’t meet expectations, with demand for makeup still stifled as customers don’t see many occasions to wear cosmetics like lipstick. Global net sales for the fiscal third quarter ended March 31 rose 16% to $3.86 billion, or 13% excluding currency fluctuations, the company said in a statement.
Resurgences in Covid-19 cases also caused temporary shutdowns of stores in important markets including the UK, Japan, Canada, France and Brazil. Consumer traffic to stores remains down globally compared to pre-pandemic levels, the company said.
Net sales for makeup declined across nearly all of Estee Lauder’s brands. Products like foundation and lip gloss have been particularly hurt by the pandemic, with workers yet to fully return to offices during the day and nightlife still muted in many countries around the world. The only region that saw growth in makeup last quarter was Asia.
Skin care continues to perform well. In February, Estee Lauder agreed to increase its stake in Deciem, owner of the Ordinary cosmetics brand, for about $1 billion, and plans to buy the remaining interest in three years. The transaction is expected to be completed in May. The cosmetics giant said signs of a travel recovery were apparent, with shoppers returning to stores in transit hubs.