Estée Lauder EL, +1.84% shares fell 1.3% in premarket trading after the makeup giant gave weaker-than-expected guidance for its fiscal first quarter. The company’s stock closed Thursday’s session up 0.15% at $276.52. New York-based Estée Lauder, which sells skin care, makeup and fragrance products under brands that include MAC, Clinique, Origins and Estée Lauder, reported fourth-quarter revenue of $3.56 billion, compared with $3.94 billion in the same period last year. Analysts surveyed by FactSet were looking for sales of $3.42 billion. Estée Lauder’s net income was $52 million, or 14 cents a share, compared with net income of $1.02 billion, or $2.76 a share in the prior year’s quarter. On an adjusted basis, Estée Lauder earned 42 cents a share, compared with 78 cents a share in the prior year’s quarter, and above the FactSet consensus of 32 cents a share. “We delivered excellent results in fiscal 2022, exceeding our expectations in the fourth quarter and achieving record revenue and profitability on an adjusted basis for the year,” said Estée Lauder Chief Executive Officer Fabrizio Freda, in a statement. “Our multiple engines of growth strategy proved invaluable amid pandemic and macro complexity, affording us the diversification to seize growth of the moment.” For the first-quarter, the company sees sales down 10% to 8% versus the prior-year period, citing negative impacts from the termination of license agreements for the Donna Karan New York, DKNY, Michael Kors, Tommy Hilfiger and Ermenegildo Zegna product lines, foreign currency translation, and the impact of the conflict between Russia and Ukraine. Analysts surveyed by FactSet were looking for first-quarter sales of $4.38 billion, implying a year-over-year decline of 0.3%. Estée Lauder sees Q1 adjusted earnings of $1.22 to $1.32 a share, below the FactSet consensus of $1.84. The company’s shares have fallen 25.3% this year, compared with the S&P 500 Index’s SPX, +0.23% decline of 10.3%. Of 25 analysts surveyed by FactSet, 17 have an overweight or buy rating and eight have a hold rating.
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