Estée Lauder continues to deal with rising COVID-19 cases in China that have had a measurable impact on the company during a crucial holiday season that triggered declines that forced a change to their full-year profit forecast.
According to WWD, the iconic beauty company’s stock closed down 4.4 percent to $268.41 following the news, seeing net sales come in at $4.62 billion in its fiscal second quarter that ended on December 31st.
Additionally, the company saw a decline of 17 percent from $5.54 billion in the prior-year period.
“All told, our return to growth has shifted to the fourth quarter,” Fabrizio Freda, president and chief executive officer of the brand, said in an official statement. “We are encouraged by both our strong momentum in numerous markets globally and improving macro trends.”
Lauder reported net earnings of $394 million, compared with $1.09 billion in the same period a year earlier, and on an adjusted basis excluding one time items, they declined 49 percent to $1.54 which beat Wall Street estimates of $1.29.
“Our M&A strategy is really to look for mostly white space opportunities,” Tracey Travis, executive vice president and chief financial officer of the Estée Lauder Cos. said, according to the report. “That allows us to really focus on brands that are accretive to our portfolio. The propriety categories are obviously skin care and fragrance,” adding that while hair care is a small portion of the business, it could also be of interest.