The Estée Lauder Companies reported net sales of $3.36 billion for its first quarter ended September 30, 2024, a decrease of 4% from $3.52 billion in the prior year. Organic net sales decreased 5%, primarily due to worsened consumer sentiment in China and low conversion rates in Asia travel retail.
The company reported a net loss of $156 million, compared with net earnings of $31 million in the prior year, largely due to $159 million in charges associated with talcum litigation settlement agreements. Diluted net loss per common share was $0.43, while adjusted diluted net earnings per common share increased to $0.14.
Estée Lauder withdrew its fiscal 2025 outlook, citing greater macro headwinds in China and Asia travel retail, and leadership changes. The company also reduced its quarterly dividend to $0.35 per share from $0.66 per share, a 47% cut, to achieve a more appropriate payout ratio and increase financial flexibility.
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