Estee Lauder provides FY24 outlook

The Company remains focused on re-establishing sustainable, profitable long-term growth across regions, product categories, brands and channels. Given the Company’s fiscal 2024 third quarter results and fourth quarter outlook, it remains confident in its renewed net sales and profit growth trajectory. For the full-year fiscal 2024 outlook, amid ongoing macroeconomic headwinds, including continued softness in overall prestige beauty in mainland China, and geopolitical volatility in some areas around the world, the Company is reducing its organic net sales outlook range and both increasing and tightening its adjusted diluted net earnings per common share range, partially offset by an expected unfavorable impact from foreign currency translation. With these revisions, the Company is maintaining its adjusted full-year operating margin outlook. The Company plans to continue to strategically invest in consumer-facing activities in areas to support sales growth, share gains and long-term profitable growth. These investments include innovation, advertising, growth of its emerging markets and the completion of its first manufacturing facility in Asia, located in Japan, to support the development of the regionalization of the supply chain in the Asia/Pacific region. Leveraging the progress the Company has made through the fiscal 2024 third quarter, its full year outlook reflects the following assumptions and expectations: Acceleration of organic net sales growth in the fiscal 2024 fourth quarter and high-single-digit growth in the second half. In Asia travel retail, a continuation of net sales growth in the fiscal 2024 fourth quarter, as well as investments to drive retail sales, following meaningful progress made through the third quarter. Clinique doubling down in Active Derma with new campaigns in the United States and the United Kingdom in the second half of fiscal 2024. Gross margin expansion in the second half of fiscal 2024 compared to the prior-year period. Stronger operating margin in the second half of fiscal 2024 compared to the first half, with expansion compared to the prior-year period. Full year effective tax rate of approximately 35%, largely due to the estimated geographical mix of earnings in fiscal 2024. Improvements in the Company’s inventory balance and days to sell for fiscal year 2024.