- Estee Lauder shares soared after the cosmetics giant posted better-than-expected results and said it would cut jobs as part of a restructuring plan.
- CEO Fabrizio Freda said Estee Lauder is at an inflection point and making progress.
- Estee Lauder projects it will return to double-digit percent organic sales growth this year.
The company reported second quarter fiscal 2024 earnings per share (EPS) of $0.88, above analysts’ estimates. Revenue fell 7.4% from a year ago to $4.28 billion, also beating forecasts.CEO Fabrizio Freda said Estee Lauder is at “an inflection point” and noted the firm made progress in the first half of the year “across several strategic priorities.” He pointed to reduced inventory in the trade of Asia travel retail, improved working capital, price increases, and “managing expenses with discipline.” The company also announced plans to expand its Profit Recovery Plan through fiscal years 2025 and 2026, starting with steps in the current quarter that include job cuts. Estee Lauder said it will eliminate 3% to 5% of its workforce, impacting up to approximately 3,150 employees.
Estee Lauder said it anticipates a return to double-digit percent organic sales growth in the second half of the fiscal year.
Shares of Estee Lauder were up 14.3% at $153.24 as of about noon ET Monday. However, even with Monday’s gains, they were still down 41% over the past year.