The cosmetics giant Estée Lauder posted net losses of $462 million or $1.28 per share.
In Q2, the company sales totaled $2.43 billion, while last year, it reported $3.59 billion. It missed the $2.45 billion expected.
For the Americas and EMEA regions, it reported decreases.
Shareholders will receive dividends of 48 cents/share, payable on September 15.
To get back on its feet after the pandemic, Estée Lauder announced a Business Acceleration Program. This initiative will consist of closing stores in North America, the Middle East, Africa, and Europe. In total, almost 15% of its international stores will cease to exist. The company will focus on ramping up digital investment. Moreover, nearly 2,000 people will be left jobless around the world.
For the next quarter, Estée Lauder expects the net sales to decrease by almost 13%, and the EPS to come in at a high of 83 cents.
Year-to-date, Estée Lauder's stock price gained 3%, while USA500 added 4.5%.
Sources: marketwatch.com, theguardian.com