Estee Lauder Withdraws FY24 Outlook; Nearly Halves Dividend; Stock Down 16% - Update

Estée Lauder Companies

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(RTTNews) - While reporting financial results for the first quarter on Thursday, Estee Lauder Cos., Inc. (EL) said it is withdrawing fiscal 2025 outlook amid incremental uncertainty on timing of stabilization in Mainland China market and Asia Travel Retail as well as in the context of leadership changes. However, the company provided guidance for the second quarter.

For the second quarter, the company expects a loss in a range of $0.02 to $0.19 per share and adjusted earnings in a range of $0.20 to $0.35 per share, on reported and organic net sales decline of 8 to 6 percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $1.06 per share on revenue of $4.29 billion for the quarter. Analysts' estimates typically exclude special items.

Separately, the company also nearly halved its dividend to $0.35 from $0.66 to achieve a more appropriate payout ratio. The company said the dividend reduction affords more financial flexibility for the incoming leadership team to reaccelerate the Company's profitable growth trajectory.

The company announced a quarterly dividend on the Company's Class A and Class B Common Stock of $0.35 per share, payable on December 16, 2024 to stockholders of record at the close of business on November 29, 2024.

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