Estee Lauder Posts 3Q Loss, Sales Fall
May 01 2020 - 07:39AM
Dow Jones News
By Maitane Sardon
Estee Lauder Cos. said Friday sales for its third quarter fell
amid retail store closures prompted by coronavirus pandemic
lockdowns.
The New York-based cosmetics company reported a loss of $6
million, or 2 cents a share, compared with earnings of $555
million, or $1.51 a share, in the comparable quarter a year
ago.
The company reported adjusted earnings of 86 cents a share.
Analysts polled by FactSet were expecting 74 cents a share on an
adjusted basis.
Sales fell 11% to $3.3 billion. Analysts had expected $3 billion
of revenue in the quarter.
Sales in the company's Americas segment fell 23% year-over-year
to $892 million. Sales in its Asia Pacific region fell 4% to $928
million.
Estee Lauder said many retail stores in northern Asia have been
reopening in recent weeks and that online sales have accelerated
globally, but retail stores in southern Asia, the Americas and
Europe, the Middle East and Africa are still closed.
The company withdrew its financial guidance for the year in
March and said earlier this month it has taken a number of measures
in light of the coronavirus pandemic. It has suspended its
quarterly dividend and borrowed the full amount under its $1.5
billion revolving credit facility.
Starting today through Oct. 30, Estee Lauder's Executive
Chairman William Lauder and Chief Executive Fabrizio Freda will
have their salaries halved, the executive leadership team will cut
their salaries by 30% and other members of management will cut
their salaries by 10% to 20%.
Write to Maitane Sardon at maitane.sardon@wsj.com
(END) Dow Jones Newswires
May 01, 2020 07:24 ET (11:24 GMT)
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