–Net Sales in Line with Expectations, EPS
Better Than Anticipated–
The Estée Lauder Companies Inc. (NYSE:EL) today reported net
sales for its first quarter ended September 30, 2014 of $2.63
billion, a 2% decrease compared with $2.68 billion in the
prior-year quarter. Excluding the impact of foreign currency
translation, net sales decreased 1%. Net earnings for the quarter
were $228.1 million, compared with $300.7 million last year and
diluted net earnings per common share were $.59, compared with $.76
in the prior year.
In the fiscal 2014 fourth quarter, some retailers accelerated
sales orders in advance of the Company’s July 2014 implementation
of its Strategic Modernization Initiative (SMI) in certain of its
largest remaining locations of approximately $178 million. These
orders would have occurred in the Company’s fiscal 2015 first
quarter. This amounted to approximately $127 million in operating
income, equal to approximately $.21 per diluted common share.
Adjusting for the impact of the accelerated orders, net sales in
constant currency and diluted earnings per share for the three
months ended September 30, 2014 each would have increased 5%.
Reconciliation between GAAP
andnon-GAAP estimates
Three Months Ended September 30, 2014 Net Sales
Growth
(Unaudited)
ReportedBasis
ConstantCurrency
Diluted EarningsPer
Share
Results including the impact of the
fiscal
2015 accelerated retailer orders
(2)%(1)
(1)%
$.59(1)
Non-GAAP
Impact of fiscal 2015 accelerated orders ~7% ~7% .21 Results
excluding the accelerated retailer orders 5% 5% $.80
(1) Represents GAAP.
Amounts may not sum due to rounding.
Additionally, the fiscal 2014 first quarter results included
charges associated with restructuring activities of $1.2 million.
Additional information about GAAP and non-GAAP financial measures,
including reconciliation information, is included in this
release.
Fabrizio Freda, President and Chief Executive Officer, said, “We
entered the fiscal year on solid footing, with underlying strength
in many parts of our business. Sales growth in the first fiscal
quarter was in line with our expectations and earnings per share
exceeded our forecast, due to strong results in several of our
brands, as well as disciplined expense management. Our performance,
after adjusting for the accelerated sales orders we reported in
fiscal 2014, was highlighted by double-digit sales and operating
income growth from our Europe, Middle East & Africa region,
where we are building share and leveraging opportunities in both
developed and emerging markets. In addition, our makeup artist and
luxury brands, and online and travel retail channels delivered
standout performances.
“Our well diversified business allows us to accelerate what’s
working and capture opportunities to further strengthen our
leadership in prestige beauty. Some of our brands that were small
have become sizeable and solid engines of growth and we believe the
new small brands we added to our portfolio recently can become
engines of the future.
“While our current business is solid, we recognize the recent
challenges around the globe, including the strength of the U.S.
dollar, geopolitical tensions and soft retail environments in
certain important markets, like Hong Kong. Reflecting the impact of
these challenges, we are adjusting our full fiscal year net sales
estimate to 5% to 6% in local currency and reducing our earnings
per share estimate to $3.03 to $3.11 for the full fiscal year,
excluding the effect of the accelerated retailer orders. Our
forecast reflects solid programs, our ability to leverage high
growth opportunities and our intent to continue to sustain
investments in areas of strong momentum and further build
capabilities for the long term.”
Results by
Product Category
Three Months Ended September 30
(Unaudited; Dollars in millions) Net Sales
Percent Change
OperatingIncome (Loss)
PercentChange
2014 2013
ReportedBasis
ConstantCurrency
2014 2013
ReportedBasis
Skin Care $ 1,091.4 $ 1,171.0 (7 )% (7 )% $ 176.4 $ 241.6
(27)
%
Makeup 1,021.3 1,001.0 2 2 125.9 166.3
(24)
Fragrance 377.4 367.4 3 3 39.0 36.9 6 Hair Care 128.1 124.8 3 4 8.8
8.4 5 Other 12.8 10.8 19 19
(2.1)
(2.5)
16 Subtotal 2,631.0 2,675.0 (2 ) (1 ) 348.0 450.7
(23)
Returns and charges associated
with restructuring activities
— — —
(1.2)
Total $ 2,631.0 $ 2,675.0 (2 )% (1 )% $ 348.0 $ 449.5
(23)
%
The change in net sales and operating income in the Company’s
product categories was unfavorably impacted by the shift in orders
from certain retailers due to the Company’s implementation of SMI,
as previously mentioned, in the following product categories. Also,
see tables on page 11.
- Net sales: Skin care, approximately $91
million; makeup, approximately $65 million; fragrance,
approximately $21 million; and hair care, approximately $1
million.
- Operating income: Skin care,
approximately $72 million; makeup, approximately $41 million; and
fragrance, approximately $14 million.
Excluding the impact of the shift in
orders:
- Reported net sales in skin care,
makeup, fragrance and hair care would have increased 1%, 9%, 8% and
3%, respectively.
- Operating results in skin care, makeup,
fragrance and hair care would have increased 3%, 1%, 43% and 6%,
respectively.
Skin Care
- Skin care net sales declined, due to
the impact of the accelerated orders, as well as a difficult
comparison with the prior-year period, which featured significant
launches of reformulated iconic products from certain of our
heritage brands.
- The decrease reflects lower sales,
versus the prior year launches of certain Advanced Night Repair
products from Estée Lauder and Dramatically Different Moisturizing
Lotion+ from Clinique, as well as certain Even Better products by
Clinique.
- Partially offsetting these decreases
were sales from recent launches of the Company’s new Advanced Night
Repair Eye Synchronized Recovery Complex II from Estée Lauder and
the Clinique Smart custom-repair serum and Clinique Sonic System
Purifying Cleansing Brush.
- Also, contributing to sales were recent
product launches, such as Micro Essence Skin Activating Treatment
Lotion from Estée Lauder, as well as from the Company’s luxury skin
care brand, La Mer.
- Operating income decreased, primarily
reflecting the lower sales, due to the accelerated orders.
Partially offsetting this decrease was a favorable comparison to
the prior-year period, which included higher investment spending to
support new launches.
Makeup
- Higher makeup sales primarily reflected
strong growth from the Company’s makeup artist brands and from
recent launches, such as Pure Color Envy sculpting lipstick and
Perfectionist makeup from Estée Lauder.
- Sales from makeup artist brands
benefited from new product offerings, as well as expanded
distribution consistent with the Company’s retail store
strategy.
- Sales in the category also benefited
from Smashbox and the Tom Ford line of cosmetics.
- The decrease in makeup operating income
primarily reflected lower results from heritage brands due to the
impact of the accelerated orders, partially offset by improved
results from the M•A•C brand.
Fragrance
- In fragrance, the higher sales
primarily reflected growth from luxury brands Tom Ford and Jo
Malone. Sales gains were also generated from the recent launches of
DKNY MYNY and Estée Lauder Modern Muse Chic.
- Fragrance operating income increased,
primarily due to higher results from the Company’s luxury brands.
Adjusting for the impact of the accelerated orders fragrance
operating income increased sharply.
Hair Care
- The hair care category’s growth
benefited from expanded global distribution, primarily in
freestanding retail stores and travel retail for Aveda and from
specialty-multi brand retailers for Bumble and bumble.
- Hair care net sales growth also
reflects the recent launches of the new and reformulated Dry Remedy
line of products by Aveda and the expansion of Bumble and bumble’s
Hairdresser’s Invisible Oil line of products.
- Hair care operating income increased,
primarily reflecting higher net sales driven by expanded global
distribution and new product launches, as well as strategically
lower investment spending.
Results by
Geographic Region
Three Months Ended September 30
(Unaudited; Dollars in millions) Net Sales
Percent Change
OperatingIncome (Loss)
PercentChange
2014 2013
ReportedBasis
ConstantCurrency
2014 2013
ReportedBasis
The Americas $ 1,114.8 $ 1,202.4 (7 )% (6 )% $ 57.4 $ 156.0
(63 )% Europe, the Middle East & Africa. 942.2 891.2 6 5 169.9
180.8 (6 ) Asia/Pacific 574.0 581.4 (1 ) (2 ) 120.7 113.9 6
Subtotal 2,631.0 2,675.0 (2 ) (1 ) 348.0 450.7 (23 )
Returns and charges associated
with restructuring activities
— — —
(1.2)
Total $ 2,631.0 $ 2,675.0 (2 )% (1 )% $ 348.0 $ 449.5 (23 )%
The change in net sales and operating income in the Company’s
geographic regions was unfavorably impacted by the shift in orders
from certain retailers due to the Company’s implementation of SMI,
as previously mentioned, as follows. Also, see tables on page
11.
- Net sales: the Americas, approximately
$84 million; Europe, the Middle East & Africa, approximately
$68 million; and Asia/Pacific, approximately $26 million.
- Operating income: the Americas,
approximately $53 million; Europe, the Middle East & Africa,
approximately $53 million; and Asia/Pacific, approximately $21
million.
Excluding the impact of the shift in
orders:
- Reported net sales in the Americas,
Europe, the Middle East & Africa and Asia/Pacific would have
increased 0%, 13% and 3%, respectively.
- Operating income in the Americas,
Europe, the Middle East & Africa and Asia/Pacific would have
increased/(decreased) (29)%, 23% and 25%, respectively.
The Americas
- Net sales in the United States and
Canada decreased, primarily due to lower net sales from heritage
brands, driven by the impact of the accelerated orders and a
difficult comparison with the prior-year period product launches
that featured significant launches of reformulated iconic
products.
- Partially offsetting these declines was
double-digit constant currency sales growth in Latin America.
- Sales in the Company’s online business
also grew double-digits.
- Sales also benefited from new product
introductions and the continued expansion at specialty multi-brand
retailers and freestanding stores and expansion within retail
channels by certain of the Company’s brands.
- Operating income in the Americas
decreased, reflecting the lower sales, due, in part, to the
accelerated orders. This decrease was partially offset by expense
management.
Europe, the Middle East &
Africa
- In constant currency, net sales
increased in most product categories and in most countries in the
region. The Company estimates that it continued to outperform
prestige beauty in many markets.
- The net sales increase was led by
double-digit constant currency growth in a number of emerging
markets, including Russia, South Africa, Turkey and Central Europe.
Double-digit growth was also posted in the Balkans and Nordic,
while strong sales gains were generated in the United Kingdom, the
Middle East and Italy.
- In travel retail, sales decreased,
reflecting the accelerated retailer orders, as previously
discussed. The Company’s travel retail business continues to
benefit from new launch initiatives, an increase in global airline
passenger traffic and expanded distribution. Excluding the impact
of the accelerated retailer orders, travel retail sales increased
double digits.
- Operating income decreased, as higher
results in the United Kingdom, Russia, France and South Africa were
more than offset by lower operating results in travel retail,
primarily due to the accelerated orders.
Asia/Pacific
- Sales in the region decreased modestly,
reflecting lower constant currency sales in Japan, China and
Thailand. The decrease in Japan is due to the accelerated retailer
orders. Sales in China declined modestly primarily due to certain
heritage brands, reflecting the overall slower growth rate in the
country, as well as a difficult comparison with the prior-year
period that featured significant launch activity. Sales in Hong
Kong were flat compared with the prior-year period.
- These decreases were partially offset
by double-digit constant currency net sales growth in Australia and
New Zealand, while Korea and Taiwan achieved mid- and high-single
digit gains, respectively.
- In Asia/Pacific, operating income
increased, led by Korea, Australia, China and Taiwan. The improved
results in China were primarily due to lower investment spending as
compared with the higher level of spending in the prior-year
period, which supported launches by certain of our heritage brands.
Lower operating results were posted primarily in Japan and Hong
Kong. The lower results in Japan reflect the impact from the
accelerated retailer orders.
Cash Flows
- For the three months ended September
30, 2014, net cash flows provided by operating activities increased
over 100% to $127.7 million, compared with $29.9 million in the
prior year.
- The improvement primarily reflected an
increase in cash from certain working capital components, partially
offset by lower net earnings.
Outlook for Fiscal 2015 Second Quarter
and Full Year
The Company continues to estimate global prestige beauty will
grow approximately 3% to 4%, but expects it will be at the low end
of the range due to certain macroeconomic issues. The Company
expects to grow ahead of the industry by focusing on the fastest
growing product categories, channels and countries. The Company
also expects to leverage its strong sales growth and increase its
operating margin and cash flow from operations.
While the Company’s business is performing well overall, the
Company is cautious of the slower growth in Hong Kong and from
Chinese travelers, unfavorable foreign exchange due to the strength
of the U.S. dollar in relation to certain currencies, the impact of
lower volume of luxury gift giving in China, and a softer retail
environment in some channels in the United States. Additionally,
the Company is negatively impacted by the recent political
instability in Hong Kong, and is also monitoring the effects of
certain global uncertainties on its business, including increased
sanctions in Russia.
As previously mentioned, some retailers accelerated their sales
orders in connection with the Company’s rollout of its last major
wave of SMI in July 2014 in certain of its locations. While those
additional orders benefited fiscal 2014 results, the Company’s full
year fiscal 2015 results will reflect a corresponding adverse
effect. The Company’s fiscal 2015 full year outlook includes the
impact of this shift.
Second Quarter Fiscal
2015
- Net sales are forecasted to increase
between 3% and 4% in constant currency.
- Reflecting the strength of the U.S.
dollar, foreign currency translation is expected to negatively
impact sales by approximately 4% versus the prior-year period.
- Diluted net earnings per share are
projected to be between $1.01 and $1.05.
- The approximate 4% negative currency
impact on the sales growth equates to about $.05 of earnings per
share.
- The Company’s second quarter estimates
include the impact of the political unrest in Hong Kong on the
Company’s domestic and travel retail business in the country.
Full Year Fiscal 2015
- Net sales are forecasted to grow
between 2% and 3% in constant currency.
- Reflecting the strength of the U.S.
dollar, foreign currency translation is now expected to negatively
impact sales by approximately 3% versus the prior-year period.
- The impact of the accelerated retailer
orders is expected to reduce the fiscal 2015 full year sales by
approximately 3%.
- Net sales excluding the effect of the
accelerated retailer orders are forecasted to grow between 5% and
6% in constant currency.
- Diluted net earnings per share,
including the effect of the accelerated retailer orders, are
projected to be between $2.82 to $2.90.
- Diluted net earnings per share,
excluding the effect of the accelerated retailer orders, are
projected to be between $3.03 to $3.11.
- The approximate 3% negative currency
impact on the sales growth equates to about $.13 of earnings per
share. On a constant currency basis and before the effect of the
accelerated retailer orders, earnings per share is expected to grow
between 7% to 10%.
Reconciliation between GAAP and
non-GAAP estimates
Year Ending June 30, 2015 Net Sales
Growth (Unaudited)
Reported Basis
Constant Currency
Diluted Earnings Per
Share
Forecast including the impact of the
fiscal
2015 accelerated retailer orders
(1)% – 0%(1)
2% – 3%
$2.82 – $2.90(1)
Non-GAAP
Impact of fiscal 2015 accelerated orders ~3% ~3% .21 Forecast
excluding the accelerated retailer orders 2% – 3% 5% – 6% $3.03 –
$3.11
(1) Represents GAAP estimates.
Conference Call
The Estée Lauder Companies will host a conference call at 9:30
a.m. (ET) today, November 4, 2014 to discuss its results. The
dial-in number for the call is 888-294-4716 in the U.S. or
706-902-0101 internationally (conference ID number: 17160386). The
call will also be webcast live at
http://investors.elcompanies.com.
Forward-Looking
Statements
The forward-looking statements in this press release, including
those containing words like “expect,” “plans,” “may,” “could,”
“anticipate,” “estimate,” “projected,” “forecasted,” those in Mr.
Freda’s remarks and those in the “Outlook for Fiscal 2015 Second
Quarter and Full Year” section involve risks and uncertainties.
Factors that could cause actual results to differ materially from
those forward-looking statements include the following:
(1) increased competitive activity from companies in the
skin care, makeup, fragrance and hair care businesses, some of
which have greater resources than the Company does; (2) the
Company’s ability to develop, produce and market new products on
which future operating results may depend and to successfully
address challenges in the Company’s business; (3) consolidations,
restructurings, bankruptcies and reorganizations in the retail
industry causing a decrease in the number of stores that sell the
Company’s products, an increase in the ownership concentration
within the retail industry, ownership of retailers by the Company’s
competitors or ownership of competitors by the Company’s customers
that are retailers and our inability to collect receivables; (4)
destocking and tighter working capital management by retailers; (5)
the success, or changes in timing or scope, of new product launches
and the success, or changes in the timing or the scope, of
advertising, sampling and merchandising programs; (6) shifts in the
preferences of consumers as to where and how they shop for the
types of products and services the Company sells; (7) social,
political and economic risks to the Company’s foreign or domestic
manufacturing, distribution and retail operations, including
changes in foreign investment and trade policies and regulations of
the host countries and of the United States; (8) changes in the
laws, regulations and policies (including the interpretations and
enforcement thereof) that affect, or will affect, the Company’s
business, including those relating to its products or distribution
networks, changes in accounting standards, tax laws and
regulations, environmental or climate change laws, regulations or
accords, trade rules and customs regulations, and the outcome and
expense of legal or regulatory proceedings, and any action the
Company may take as a result; (9) foreign currency fluctuations
affecting the Company’s results of operations and the value of its
foreign assets, the relative prices at which the Company and its
foreign competitors sell products in the same markets and the
Company’s operating and manufacturing costs outside of the United
States; (10) changes in global or local conditions, including those
due to the volatility in the global credit and equity markets,
natural or man-made disasters, real or perceived epidemics, or
energy costs, that could affect consumer purchasing, the
willingness or ability of consumers to travel and/or purchase the
Company’s products while traveling, the financial strength of the
Company’s customers, suppliers or other contract counterparties,
the Company’s operations, the cost and availability of capital
which the Company may need for new equipment, facilities or
acquisitions, the returns that the Company is able to generate on
its pension assets and the resulting impact on its funding
obligations, the cost and availability of raw materials and the
assumptions underlying the Company’s critical accounting estimates;
(11) shipment delays, commodity pricing, depletion of inventory and
increased production costs resulting from disruptions of operations
at any of the facilities that manufacture nearly all of the
Company’s supply of a particular type of product (i.e., focus
factories) or at the Company’s distribution or inventory centers,
including disruptions that may be caused by the implementation of
SAP as part of the Company’s Strategic Modernization Initiative,
other information technology initiatives or by restructurings; (12)
real estate rates and availability, which may affect the Company’s
ability to increase or maintain the number of retail locations at
which the Company sells its products and the costs associated with
the Company’s other facilities; (13) changes in product mix to
products which are less profitable; (14) the Company’s ability to
acquire, develop or implement new information and distribution
technologies and initiatives on a timely basis and within the
Company’s cost estimates and the Company’s ability to maintain
continuous operations of such systems and the security of data and
other information that may be stored in such systems or other
systems or media; (15) the Company’s ability to capitalize on
opportunities for improved efficiency, such as publicly-announced
strategies and restructuring and cost-savings initiatives, and to
integrate acquired businesses and realize value therefrom; (16)
consequences attributable to local or international conflicts
around the world, as well as from any terrorist action, retaliation
and the threat of further action or retaliation; (17) the timing
and impact of acquisitions, investments and divestitures; and (18)
additional factors as described in the Company’s filings with the
Securities and Exchange Commission, including its Annual Report on
Form 10-K for the fiscal year ended June 30, 2014.
The Company assumes no responsibility to update forward-looking
statements made herein or otherwise.
The Estée Lauder Companies Inc. is one of the world’s leading
manufacturers and marketers of quality skin care, makeup, fragrance
and hair care products. The Company’s products are sold in over 150
countries and territories under the following brand names: Estée
Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins,
M•A•C, Bobbi Brown, Tommy Hilfiger, Kiton, La Mer, Donna Karan,
Aveda, Jo Malone, Bumble and bumble, Darphin, Michael Kors, Flirt!,
GoodSkin Labs, Tom Ford, Coach, Ojon, Smashbox, Ermenegildo Zegna,
Aerin Beauty, Osiao, Marni, Tory Burch, RODIN olio lusso and Le
Labo.
An electronic version of this release can be found at the
Company’s website, www.elcompanies.com.
THE ESTÉE LAUDER COMPANIES
INC.CONSOLIDATED STATEMENTS OF EARNINGS(Unaudited; In
millions, except per share data and percentages)
Three Months EndedSeptember
30
Percent Change
2014
2013
Net Sales $ 2,631.0 $ 2,675.0 (2 )% Cost of sales
536.6 544.1
Gross Profit 2,094.4
2,130.9 (2 )%
Gross Margin
79.6 % 79.7 % Operating expenses: Selling, general and
administrative 1,746.4 1,680.2 Restructuring and other charges
— 1.2 1,746.4 1,681.4 4 %
Operating
Expense Margin 66.4 % 62.9 %
Operating Income
348.0 449.5 (23 )%
Operating Income Margin 13.2 %
16.8 % Interest expense, net 13.2 13.5
Earnings before Income Taxes 334.8 436.0 (23 )%
Provision for income taxes 105.6 134.2
Net
Earnings 229.2 301.8 (24 )% Net earnings attributable to
noncontrolling interests
(1.1)
(1.1)
Net Earnings Attributable to The Estée
Lauder
Companies Inc.
$ 228.1 $ 300.7
(24
)%
Net earnings attributable to The Estée
Lauder Companies
Inc. per common share:
Basic $ .60 $ .78 (23 )% Diluted .59 .76 (23 )% Weighted
average common shares outstanding: Basic 381.8 387.8 Diluted 388.2
394.9
In the fiscal 2014 fourth quarter some retailers accelerated
sales orders in advance of the Company’s July 2014 implementation
of its Strategic Modernization Initiative (SMI) in certain of its
largest remaining locations of approximately $178 million. These
orders would have occurred in the Company’s fiscal 2015 first
quarter ended September 30, 2014. This amounted to approximately
$127 million in operating income, equal to approximately $.21 per
diluted common share.
THE ESTÉE LAUDER COMPANIES INC.
This earnings release includes some non-GAAP financial measures
relating to charges associated with restructuring activities and
the accelerated orders associated with the Company’s Strategic
Modernization Initiative (SMI) rollout. The following are
reconciliations between the non-GAAP financial measures and the
most directly comparable GAAP measures for certain consolidated
statements of earnings accounts before and after these items. The
Company uses these non-GAAP financial measures, among other
financial measures, to evaluate its operating performance, and the
measures represent the manner in which the Company conducts and
views its business. Management believes that excluding these items
that are not comparable from period to period helps investors and
others compare operating performance between two periods. While the
Company considers the non-GAAP measures useful in analyzing its
results, they are not intended to replace, or act as a substitute
for, any presentation included in the consolidated financial
statements prepared in conformity with GAAP.
The Company operates on a global basis, with the majority of its
net sales generated outside the United States. Accordingly,
fluctuations in foreign currency exchange rates can affect the
Company’s results of operations. Therefore, the Company presents
certain net sales information excluding the effect of foreign
currency rate fluctuations to provide a framework for assessing the
performance of its underlying business outside the United States.
Constant currency information compares results between periods as
if exchange rates had remained constant period-over-period. The
Company calculates constant currency information by translating
current-period results using prior-year period weighted average
foreign currency exchange rates.
As part of SMI, the Company implemented the last major wave of
SAP-based technologies in July 2014. As a result, and consistent
with prior waves, the Company experienced a shift in its sales and
operating results from accelerated orders from certain of its
retailers to provide adequate safety stock and to mitigate any
potential short-term business interruption associated with the July
2014 SMI rollout. In particular, approximately $178 million of
accelerated orders were recorded as net sales in the fiscal 2014
fourth quarter that would have occurred in the fiscal 2015 first
quarter.
This action created an unfavorable comparison between the fiscal
2015 and fiscal 2014 first quarters of approximately $178 million
in net sales and approximately $127 million in operating income,
equal to $.21 per diluted common share and impacted the Company’s
operating margin comparisons. The Company believes the presentation
of certain comparative information in the discussions in this
release that exclude the impact of the timing of these orders is
useful in analyzing the net sales performance and operating results
of its business.
THE ESTÉE LAUDER COMPANIES
INC.Reconciliation of Certain Consolidated Statements of
Earnings Accounts Before and AfterReturns and Charges and
Accelerated Orders Associated with the Company’s Implementation of
SAP(Unaudited; In millions, except per share data and
percentages)
Three Months EndedSeptember 30,
2014
Three Months EndedSeptember 30,
2013
AsReported
Returns/Charges
SAPAdjust-ments
BeforeCharges/SAP
AsReported
Returns/Charges
SAPAdjust-ments
BeforeCharges/SAP
% Changeversus PriorYear
BeforeCharges/SAP
Net Sales $2,631.0
$ —
$178.3 $2,809.3 $2,675.0
$ —
$ —
$2,675.0
5% Cost of sales 536.6 — 35.1 571.7 544.1 — — 544.1 Gross Profit
2,094.4 — 143.2 2,237.6 2,130.9 — — 2,130.9 5% Gross Margin 79.6 %
79.6 %
79.7
%
79.7
%
Operating expenses 1,746.4 — 16.0 1,762.4 1,681.4
(1.2)
— 1,680.2 5% Operating Expense Margin 66.4 % 62.7 % 62.9 % 62.8 %
Operating Income 348.0 — 127.2 475.2 449.5 1.2 —
450.7
5% Operating Income Margin 13.2 % 16.9 % 16.8 %
16.9
%
Provision for income taxes 105.6 — 45.3 150.9 134.2 0.3 —
134.5
Net Earnings Attributable to
The Estée Lauder
Companies Inc.
228.1 — 81.9 310.0 300.7 0.9 —
301.6
3%
Diluted net earnings
attributable to The Estée
Lauder Companies Inc. per
common share
.59 — .21 .80 .76 .00 — .76 5%
The impact on net sales and operating results of the accelerated
orders from certain retailers associated with the Company’s
implementation of SMI by product category and geographic region is
shown below. Additionally, excluding the impact of the shift in
orders and the returns and charges associated with restructuring
activities, net sales and operating results for the three months
ended September 30, 2014 would have increased/(decreased) as
follows:
Three Months Ended September 30, 2014
(Unaudited)
Accelerated Sales Orders Net
Sales As Adjusted
OperatingResults
AsAdjusted
Net Sales
OperatingResults
ReportedBasis
ConstantCurrency
Product
Category:
Skin Care $ 91 $ 72 1 % 1 % 3 % Makeup 65 41 9 9 1 Fragrance 21 14
8 9 43 Hair Care 1 — 3 4 6 Other — — 19 19
16 Total $ 178 $ 127 5 % 5 % 5 %
Geographic
Region:
The Americas $ 84 $ 53 0 % 1 % (29 )% Europe, the Middle East &
Africa 68 53 13 12 23 Asia/Pacific 26 21 3 3
25 Total $ 178 $ 127 5 % 5 % 5 %
THE ESTÉE LAUDER COMPANIES
INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited;
In millions)
September 30
2014
June 30
2014
September 30
2013
ASSETS Current Assets Cash and
cash equivalents $ 1,395.4 $ 1,629.1 $ 1,322.2 Accounts receivable,
net 1,502.1 1,379.3 1,566.7 Inventory and promotional merchandise,
net 1,257.0 1,294.0 1,196.3 Prepaid expenses and other current
assets 573.4 522.8 547.2
Total Current Assets 4,727.9
4,825.2 4,632.4
Property, Plant and Equipment, net
1,444.3 1,502.6 1,364.4
Other Assets 1,492.1 1,541.0 1,523.7
Total Assets $ 7,664.3 $ 7,868.8 $ 7,520.5
LIABILITIES AND EQUITY Current Liabilities Current
debt $ 14.0 $ 18.4 $ 15.9 Accounts payable 516.1 524.5 461.9 Other
current liabilities 1,411.6 1,513.8 1,509.8
Total Current
Liabilities 1,941.7 2,056.7 1,987.6
Noncurrent
Liabilities Long-term debt 1,319.0 1,324.7 1,324.7 Other
noncurrent liabilities 609.4 618.0 595.7
Total Noncurrent
Liabilities 1,928.4 1,942.7 1,920.4
Total Equity
3,794.2 3,869.4 3,612.5
Total Liabilities and Equity $
7,664.3 $ 7,868.8 $ 7,520.5
SELECT CASH FLOW DATA(Unaudited;
In millions)
Three Months EndedSeptember
30
2014 2013 Cash Flows from Operating
Activities Net earnings $ 229.2 $ 301.8 Depreciation and
amortization 100.6 88.9 Deferred income taxes (18.3 ) (23.4 ) Other
items 69.2 59.4 Changes in operating assets and liabilities:
Increase in accounts receivable, net (167.9 ) (375.1 ) Increase in
inventory and promotional merchandise, net (9.7 ) (58.1 ) Increase
in other assets, net (37.1 ) (37.6 ) Increase (decrease) in
accounts payable and other liabilities (38.3 ) 74.0
Net cash flows provided by operating activities $ 127.7 $
29.9 Capital expenditures $ 78.7 $ 85.7 Payments to acquire
treasury stock 207.0 59.5 Dividends paid 77.5 69.8
The Estée Lauder Companies Inc.Investor
Relations:Dennis D’Andrea, 212-572-4384orMedia
Relations:Alexandra Trower, 212-572-4430
Entergy Louisiana (NYSE:ELC)
Historical Stock Chart
From Sep 2024 to Oct 2024
Entergy Louisiana (NYSE:ELC)
Historical Stock Chart
From Oct 2023 to Oct 2024