Article Hero

Estée Lauder posted worse-than-expected Q2 losses

1598018678.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Estée Lauder had a bad-bad quarter

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


This information prepared by capex.com/za is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation, or the particular needs of any recipient.You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation, or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.This information may not be published, circulated, reproduced, or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of capex.com/zaJME Financial Services (Pty) Ltd trading as CAPEX.COM/ZA acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via CAPEX.COM/ZA, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15.  Magnasale Trading Ltd is the principal to the CFD purchased by investors.

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.