A 10 percent year-on-year decline in net sales, a 16 percent profit decrease and the fourth downward revision to its fiscal outlook were announced in Wednesday’s first quarter 2024 results. The company’s stock plunged by 19 percent to a six-year low; it has slumped 60 percent this year.
These results mark the fifth straight quarter of declines for ELC; a situation that has prompted unfavourable comparisons with competitors L’Oréal and Coty, both of which have weathered recent headwinds better. All three struggled during the pandemic, but ELC’s recovery since has been patchy. When it comes to the why, ELC chief executive officer Fabrizio Freda and Wall Street have largely been singing from the same hymn sheet: travel retail.
To read more on how travel retail drove the beauty conglomerate to its fifth straight quarter of declines, head to our #linkinbio.
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? Estée Lauder Companies
