NEW YORK–(BUSINESS WIRE)–The Estée Lauder Companies Inc. (NYSE: EL) at present reported internet gross sales of $4.25 billion for its third quarter ended March 31, 2022, a rise of 10% from $3.86 billion within the prior-year interval. Organic internet gross sales elevated 9%. Net gross sales grew in each product class, largely reflecting continued restoration in brick-and-mortar retail shops, pushed by double-digit progress in The Americas and Europe, the Middle East & Africa (“EMEA”) areas, in addition to progress in world online2. The Company delivered sturdy gross sales progress within the context of elevated COVID-related restrictions in China starting mid-March 2022. These momentary restrictions diminished client site visitors and journey in addition to restricted the Company’s capability to ship orders from its distribution amenities.
The Company reported internet earnings3 of $0.56 billion, in contrast with internet earnings3 of $0.46 billion within the prior-year interval. Diluted internet earnings per frequent share was $1.53, in contrast with $1.24 reported within the prior-year interval. Excluding restructuring and different prices and changes as detailed on web page 3, adjusted diluted earnings per frequent share was $1.90, an 18% improve in fixed forex.
Fabrizio Freda, President and Chief Executive Officer mentioned, “We delivered sturdy gross sales progress and better-than-expected profitability within the third quarter of fiscal 2022 within the face of accelerated headwinds because the quarter developed, together with COVID restrictions within the Asia/Pacific area. Every class grew organically, led by Fragrance’s excellent efficiency globally and the make-up renaissance in western markets. Eleven manufacturers contributed double-digit natural gross sales progress and additional demonstrated our diversification, empowered by our a number of engines of progress technique. Consumer demand remained sturdy even on this extra inflationary surroundings.
________________
1
Organic internet gross sales represents internet gross sales excluding returns related to restructuring and different actions; non-comparable impacts of acquisitions, divestitures and model closures; in addition to the impacts from forex. We consider the Non-GAAP measure of natural internet gross sales progress gives year-over-year gross sales comparisons on a constant foundation. See web page 2 for reconciliations to GAAP.
2
Online gross sales mentioned all through contains gross sales of our merchandise from our web sites and third-party platforms, in addition to estimated gross sales of our merchandise bought by way of our retailers’ web sites.
3
Net earnings attributable to The Estée Lauder Companies Inc. which excludes internet (earnings) attributable to noncontrolling pursuits, in addition to redeemable noncontrolling curiosity starting within the fourth quarter of fiscal 2021.
“The Americas and EMEA areas outperformed our general gross sales progress. We capitalized on re-opening to ship double-digit natural gross sales progress, leveraging our high-touch providers, breakthrough innovation, and fascinating hero franchises. In the Asia/Pacific area, a number of markets prospered, led by Japan whereas our China outcomes had been pressured by COVID restrictions.”
Freda concluded, “Given our excellent efficiency year-to-date, we count on to ship a document yr in fiscal 2022 regardless of momentary COVID-driven headwinds that diminished our fourth quarter outlook. We are assured that our enterprise in China will rebound when COVID abates and speed up our momentum.”
COVID-19 Business Update
The COVID-19 pandemic continued to disrupt the Company’s working surroundings globally, primarily impacting retail site visitors, journey, provide chain, stock ranges and different logistics throughout the fiscal 2022 third quarter. The resurgence of COVID-19 circumstances in lots of Chinese provinces led to restrictions late within the fiscal 2022 third quarter to stop additional unfold of the virus. Consequently, retail site visitors, journey, and distribution capabilities had been quickly curtailed. The Company’s distribution amenities in Shanghai operated with restricted capability to meet brick-and-mortar and on-line orders starting in mid-March 2022.
Fiscal 2022 Third Quarter Results
Organic internet gross sales progress represents internet gross sales progress excluding returns related to restructuring and different actions; non-comparable impacts of acquisitions, divestitures and model closures (notably the acquisition of the bulk curiosity in DECIEM and closure of BECCA); in addition to the impacts from forex. Category and area commentary replicate natural efficiency.
Reconciliation between GAAP and Non-GAAP Net Sales Growth
(Unaudited)
Three Months Ended
March 31, 2022
As Reported – GAAP(1)
10
%
Organic, Non-GAAP(2)
9
%
Impact of acquisitions, divestitures and model closures, internet
2
Impact of overseas forex
(1
)
Returns related to restructuring and different actions
—
As Reported – GAAP(1)
10
%
(1)Includes returns related to restructuring and different actions
(2)Organic internet gross sales progress represents internet gross sales progress excluding returns related to restructuring and different actions; non-comparable impacts of acquisitions, divestitures and model closures (notably DECIEM and BECCA); in addition to the impacts from forex.
Adjusted diluted earnings per frequent share excludes restructuring and different prices and changes as detailed within the following desk.
Reconciliation between GAAP and Non-GAAP – Diluted Earnings Per Share (“EPS”)
(Unaudited)
Three Months Ended
March 31
2022
2021
Growth
As Reported EPS – GAAP(1)
$
1.53
$
1.24
24
%
Non-GAAP
Restructuring and different prices
.05
.31
Changes in truthful worth of contingent consideration
—
—
Change in truthful worth of acquisition-related inventory choices (much less the portion attributable to
redeemable noncontrolling curiosity)
(.13
)
—
Other intangible and long-lived asset impairments
.45
.07
Adjusted EPS – Non-GAAP
$
1.90
$
1.62
17
%
Impact of overseas forex on earnings per share
.01
Adjusted Constant Currency EPS – Non-GAAP
$
1.91
$
1.62
18
%
(1)Includes restructuring and different prices and changes
Net gross sales within the Company’s product classes and areas outdoors of the United States had been unfavorably impacted by a stronger U.S. greenback in relation to most currencies. Operating earnings was favorably impacted by the stronger U.S. greenback.
Total reported working earnings was $0.74 billion, a 20% improve from $0.62 billion within the prior-year interval. Adjusted working earnings in fixed forex elevated 16%, primarily reflecting larger internet gross sales and excluding the next gadgets:
Fiscal 2022 third quarter: $216 million of different intangible asset impairments associated to Dr. Jart+ and GLAMGLOW and $23 million of restructuring and different prices, partially offset by $60 million of earnings associated to the change in truthful worth of acquisition-related inventory choices.
Fiscal 2021 third quarter: $33 million of asset impairments associated to a number of the Company’s freestanding shops and $145 million of restructuring and different prices.
The unfavorable impression of forex translation of $2 million.
Results by Product Category
(Unaudited)
Three Months Ended March 31
Net Sales
Percentage Change
Operating
Income (Loss)
Percentage
Change
($ in tens of millions)
2022
2021
Reported
Basis
Constant
Currency
2022
2021
Reported
Basis
Skin Care
$
2,395
$
2,259
6
%
7
%
$
667
$
804
(17
)%
Makeup
1,114
1,018
9
11
7
(72
)
100
+
Fragrance
579
454
28
31
105
47
100
+
Hair Care
147
128
15
17
(18
)
(17
)
(6
)
Other
11
15
(27
)
(27
)
—
(1
)
100
Subtotal
$
4,246
$
3,874
10
%
11
%
$
761
$
761
—
%
Returns/prices related to
restructuring and different actions and
changes
(1
)
(10
)
(23
)
(145
)
Total
$
4,245
$
3,864
10
%
11
%
$
738
$
616
20
%
Organic Net Sales Growth – Reconciliation to GAAP
(Unaudited)
Three Months Ended March 31
2022 vs. 2021
Organic
Net Sales
Growth
(Non-GAAP)(1)
Impact of
Acquisitions,
Divestitures and
Brand Closures, Net
Impact of
Foreign Currency
Net Sales
Growth
(GAAP)
Skin Care
3
%
4
%
(1
)%
6
%
Makeup
12
(1
)
(2
)
9
Fragrance
31
—
(3
)
28
Hair Care
17
—
(2
)
15
Other
(33
)
6
—
(27
)
Subtotal
9
%
2
%
(1
)%
10
%
Returns related to restructuring and different actions
—
Total
9
%
2
%
(1
)%
10
%
(1)Organic internet gross sales progress represents internet gross sales progress excluding returns related to restructuring and different actions; non-comparable impacts of acquisitions, divestitures and model closures (notably DECIEM and BECCA); in addition to the impacts from forex.
Skin Care
Skin care internet gross sales grew in The Americas and EMEA areas, led by sturdy double-digit gross sales progress from La Mer. This was partially offset by a decline within the Asia/Pacific area, which was impacted by transitory logistics constraints in China.
The non-comparable impacts of internet gross sales associated to acquisitions, divestitures and model closures contributed roughly 4 share factors to internet gross sales progress.
Growth from La Mer mirrored will increase in hero merchandise, together with Crème de la Mer and the Genaissance de la Mer line of merchandise, the current launch of The Hydrating Infused Emulsion and preliminary shipments of the brand new upgraded The Treatment Lotion in addition to focused expanded client attain.
Estée Lauder skincare internet gross sales declined, reflecting challenges in direction of the tip of the quarter attributable to logistics headwinds in Greater China, partially offset by the launches of Revitalizing Supreme+ and Micro Essence.
Skin care working earnings decreased, reflecting the present yr impression of different intangible asset impairments associated to Dr.Jart+ and GLAMGLOW of roughly $216 million.
Makeup
Makeup internet gross sales elevated, reflecting the continued development in direction of restoration in western markets, elevated utilization events and simpler comparisons to the prior yr. The progress was led by M·A·C, Estée Lauder and Clinique.
The non-comparable impacts of internet gross sales associated to acquisitions, divestitures and model closures diminished internet gross sales progress by 1 share level.
M·A·C’s double-digit internet gross sales progress was pushed by hero merchandise, similar to Studio Fix, the current launches of MACStack mascara and LustreGlass Sheer-Shine Lipstick, and compelling social media campaigns to drive the make-up renaissance.
Double-digit internet gross sales progress from Estée Lauder was fueled by the Double Wear product line, together with the current launch of Double Wear Sheer Long-Wear Makeup.
Strong double-digit internet gross sales progress from Clinique mirrored distinctive efficiency within the lip, concealer and eye subcategories in addition to hero product Even Better Makeup.
Makeup working earnings elevated, primarily reflecting larger internet gross sales. Additionally, the prior yr was adversely impacted by long-lived asset impairments of $24 million.
Fragrance
Net gross sales grew in each area and throughout nearly all manufacturers that promote fragrances, pushed by continued resilience in luxurious perfume, the opening of extra brick-and-mortar retail and the start of journey restoration in western markets.
Jo Malone London internet gross sales grew sturdy double digits primarily pushed by energy in colognes, significantly in hero franchises, dwelling and tub & physique. The launches of House of Roses and Mediterranean Blossoms additionally contributed to progress.
Tom Ford Beauty internet gross sales grew sturdy double digits, powered by launches, similar to Rose De Chine and Rose D’Amalfi, and Costa Azzurra parfum, in addition to natural progress in present hero franchises like Oud Wood and Ombre Leather.
Net gross sales from Le Labo rose sturdy double digits, primarily reflecting the restoration of brick-and-mortar, improved retail site visitors, and focused expanded client attain. Growth was pushed by hero fragrances, similar to Santal 33 in addition to the profitable launch of Thé Matcha 26.
Estée Lauder perfume internet gross sales additionally grew sturdy double digits primarily pushed by the lately launched Luxury Fragrance Collection and energy from Beautiful Magnolia Intense.
Fragrance working earnings elevated, pushed primarily by larger internet gross sales partly offset by strategic investments to help brick-and-mortar reopening and vacation.
Hair Care
Hair care internet gross sales rose in each area, reflecting will increase from each Aveda and Bumble and bumble as brick-and-mortar places get well and on-line continued to thrive.
Aveda’s double-digit progress mirrored the continued success of its hero franchises, together with Invati, Nutriplenish and Botanical Repair, in addition to the relaunch of Full Spectrum Semi-Permanent Treatment Hair Color and the launch of Botanical Repair Strengthening Overnight Serum.
Net gross sales elevated at Bumble and bumble, primarily reflecting the launches of Thickening Plumping Mask and Thickening Go Big Plumping Treatment. Targeted expanded client attain additionally contributed to progress.
Hair care working outcomes decreased, reflecting strategic investments to help the brick-and-mortar restoration, partially offset by larger internet gross sales.
Results by Geographic Region
(Unaudited)
Three Months Ended March 31
Net Sales
Percentage Change
Operating
Income (Loss)
Percentage
Change
($ in tens of millions)
2022
2021
Reported
Basis
Constant
Currency
2022
2021
Reported
Basis
The Americas
$
1,053
$
916
15
%
14
%
$
408
$
155
100
+%
Europe, the Middle East & Africa
1,990
1,706
17
19
281
361
(22
)
Asia/Pacific
1,203
1,252
(4
)
(3
)
72
245
(71
)
Subtotal
$
4,246
$
3,874
10
%
11
%
$
761
$
761
—
%
Returns/prices related to restructuring and
different actions and changes
(1
)
(10
)
(23
)
(145
)
Total
$
4,245
$
3,864
10
%
11
%
$
738
$
616
20
%
Organic Net Sales Growth – Reconciliation to GAAP
(Unaudited)
Three Months Ended March 31
2022 vs. 2021
Organic
Net Sales
Growth
(Non-GAAP (1)
Impact of
Acquisitions,
Divestitures and
Brand Closures, Net
Impact of
Foreign
Currency
Net Sales
Growth
(GAAP)
The Americas
11
%
3
%
1
%
15
%
Europe, the Middle East & Africa
18
1
(2
)
17
Asia/Pacific
(4
)
1
(1
)
(4
)
Subtotal
9
%
2
%
(1
)%
10
%
Returns related to restructuring and different actions
—
Total
9
%
2
%
(1
)%
10
%
(1)Organic internet gross sales progress represents internet gross sales progress excluding returns related to restructuring and different actions; non-comparable impacts of acquisitions, divestitures and model closures (notably DECIEM and BECCA); in addition to the impacts from forex.
The Americas
Net gross sales grew sturdy double digits within the United States, Canada and Latin America as brick-and-mortar retail site visitors continued to get well. Net gross sales elevated in each product class and in most main distribution channels.
The non-comparable impacts of internet gross sales associated to acquisitions, divestitures and model closures contributed roughly 3 share factors to internet gross sales progress.
Brick-and-mortar gross sales elevated sturdy double digits, benefiting from a year-over-year improve in open retail places in addition to improved site visitors.
In North America, internet gross sales grew in each product class led by make-up, which was disproportionately impacted by the challenges stemming from the COVID-19 pandemic within the prior-year interval.
In Latin America, internet gross sales grew in each class and each market.
Operating earnings in The Americas elevated, reflecting a rise within the intercompany royalty earnings associated to the expansion in our journey enterprise and better gross sales, partially offset by the opposite intangible asset impairment of $11 million referring to GLAMGLOW.
Europe, the Middle East & Africa
Net gross sales grew in most markets, led by the United Kingdom. The progress displays restoration in brick-and-mortar in comparison with the prior yr when retail site visitors was negatively impacted by COVID-19. Net gross sales grew double digits in almost each product class.
The non-comparable impacts of internet gross sales associated to acquisitions, divestitures and model closures contributed roughly 1 share level to internet gross sales progress.
Net gross sales from most rising markets within the area elevated, pushed by the brick-and-mortar restoration.
Following the invasion of Ukraine, the Company suspended all industrial exercise in Russia and Ukraine. Consequently, internet gross sales in Russia and Ukraine declined.
Net gross sales elevated in each product class, led by sturdy progress in skincare and double-digit progress in perfume and make-up, partly reflecting the return of social actions and in-store providers.
Global journey retail internet gross sales elevated double digits, reflecting continued progress from Asia/Pacific. However, extra journey restrictions late within the third quarter of fiscal 2022 led to diminished journey, significantly to Hainan. Travel retail internet gross sales additionally grew from Europe, the Middle East & Africa and The Americas.
Brick-and-mortar gross sales grew double digits reflecting favorable comparisons to the prior yr interval when extra brick-and-mortar was closed.
Operating earnings decreased, primarily pushed by a rise within the intercompany royalty expense associated to the expansion in our journey retail enterprise.
Asia/Pacific
Net gross sales declined, primarily pushed by Greater China attributable to diminished retail site visitors and restricted capability within the Shanghai distribution amenities in compliance with momentary restrictions to stop the unfold of COVID-19. This was considerably offset by progress in southeast Asia and Japan.
The non-comparable impacts of internet gross sales associated to acquisitions, divestitures and model closures contributed roughly 1 share level to internet gross sales progress.
Net gross sales declines in make-up, reflecting the rise in COVID restrictions, and skincare had been solely partly offset by internet gross sales progress from perfume and hair care within the area.
Net gross sales declined in brick-and-mortar attributable to comfortable site visitors in areas most impacted by rising circumstances of the virus. Strong double-digit on-line progress partly offset the decline in brick-and-mortar because the Company and lots of retailers continued to seize client demand on-line.
Operating earnings decreased, due totally to the opposite intangible asset impairment of $205 million referring to Dr. Jart+.
Nine-Month Results
For the 9 months ended March 31, 2022, the Company reported internet gross sales of $14.18 billion, a 15% improve in contrast with $12.28 billion within the prior-year interval. Organic internet gross sales elevated 13%.
Net earnings4 had been $2.34 billion, and diluted earnings per share was $6.39. In the prior yr 9 months, the Company reported internet earnings4 of $1.85 billion and diluted earnings per share of $5.03.
During the nine-months ended March 31, 2022, the Company recorded restructuring and different prices, different intangible asset impairments, change in truthful worth of acquisition-related inventory choices, and different earnings associated to a achieve on a beforehand held fairness funding in Deciem Beauty Group Inc. that, mixed, resulted in an unfavorable impression of $201 million ($151 million much less the portion attributable to redeemable noncontrolling curiosity and internet of tax), equal to $.41 per diluted share, as detailed on web page 16. The prior-year interval outcomes embody restructuring and different prices, modifications in contingent consideration and goodwill, different intangible and long-lived asset impairments that, mixed, totaled $303 million ($237 million after tax), equal to $.65 per diluted share.
Excluding restructuring and different prices and changes referred to within the earlier bullet, adjusted diluted internet earnings per frequent share for the 9 months ended March 31, 2022 was $6.80, and rose 19% in fixed forex. For the 9 months ended March 31, 2022, the advantage of overseas forex translation on diluted internet earnings per frequent share was $.04.
Cash Flows
For the 9 months ended March 31, 2022, internet money flows offered by working actions had been $1.97 billion, in contrast with $2.78 billion within the prior-year interval, reflecting larger working capital must help progress and actions taken to mitigate the worldwide provide chain challenges, in addition to larger money paid for taxes, partially offset by larger earnings earlier than taxes, excluding non-cash gadgets.
Capital Expenditures elevated to $658 million in comparison with $386 million within the prior-year interval, primarily pushed by elevated investments for a brand new manufacturing facility in Japan, on-line capabilities and data know-how enhancements in addition to investments to help the reopening of the Company’s places of work positioned around the globe the place COVID circumstances subsided.
The Company ended the quarter with $3.84 billion in money and money equivalents after returning $2.62 billion money to stockholders by way of dividends and share repurchases.
________________
4
Net earnings attributable to The Estée Lauder Companies Inc. which excludes internet (earnings) attributable to noncontrolling pursuits, in addition to redeemable noncontrolling curiosity starting within the fourth quarter of fiscal 2021.
Outlook
The Company is revising its full fiscal yr outlook, reflecting each excellent efficiency year-to-date and extra headwinds which can be impacting the fourth quarter of fiscal 2022, together with the COVID-related restrictions in China, which can be additionally affecting its journey retail enterprise, and the impression of the invasion of Ukraine.
With a number of engines of progress throughout areas, manufacturers, product classes and channels, the Company is well-positioned to proceed to drive a gradual acceleration as COVID abates and market dynamics help it. The Company expects to put money into areas to help the acceleration, together with promoting, on-line, analysis and growth and provide chain, to drive progress in areas of alternative and assist nurture rising traits in the remainder of the enterprise.
The full yr outlook displays the next assumptions:
Global volatility and variability is anticipated to proceed, together with inflation, provide chain disruption (together with momentary diminished capability at China distribution amenities), impacts associated to present COVID-19 restrictions (primarily in Greater China together with retailer closures, diminished site visitors and fewer journey), and disruptions in Europe associated to the invasion in Ukraine. The Company is targeted on driving progress in areas of restoration whereas persevering with to handle by way of this unsure surroundings.
Growth in developed markets within the west and brick-and-mortar retail pushed by a continued restoration of the make-up and hair care classes as international locations cut back COVID-19 restrictions.
Targeted new distribution all year long to retailers that present broader client attain.
A continued gradual resumption of worldwide journey in Europe and the Americas.
Benefit from an almost full yr incremental impression of DECIEM in internet gross sales and working outcomes.
Higher transportation and logistics prices are negatively impacting each value of gross sales and working bills within the the rest of fiscal 2022. The Company expects to mitigate a number of the impression to its enterprise and prices by way of strategic value will increase and value financial savings in different areas.
Incremental financial savings from the Post-COVID Business Acceleration Program and reinvestment in promoting and capabilities.
Full-year efficient tax charge of roughly 21.5%.
The Company is aware of ongoing dangers associated to the COVID-19 pandemic in addition to dangers associated to social, financial and political issues, together with restructurings and bankruptcies within the retail trade, geopolitical tensions, regulatory developments, world safety points, forex volatility, basic financial challenges, together with rising inflationary pressures and provide chain disruptions, and modifications in client preferences that have an effect on client spending in sure international locations, channels and journey corridors.
Longer-term, the Company expects to return to its progress targets of 6% to eight% gross sales progress, 50 foundation factors of working margin enlargement and double-digit adjusted diluted earnings per share progress in fixed forex after a interval of normalization because the impacts of the COVID-19 pandemic subside.
Full Year Fiscal 2022
Sales Outlook
Reported internet gross sales are forecasted to extend between 7% and 9% versus the prior-year interval.
Organic internet gross sales, which excludes returns related to restructuring and different actions; non-comparable impacts from acquisitions, divestitures and model closures; in addition to the impression from forex, are forecasted to extend between 5% and seven%.
Earnings per Share Outlook
Reported diluted internet earnings per frequent share are projected to be between $6.54 and $6.70. Excluding restructuring and different prices and changes, diluted internet earnings per frequent share are projected to be between $7.05 and $7.15.
The Company expects to take prices related to beforehand permitted restructuring and different actions. For the Post-COVID Business Acceleration Program, the costs are estimated to be between roughly $55 million to $85 million, equal to $.12 to $.18 per diluted frequent share.
Adjusted diluted earnings per frequent share are anticipated to extend between 8% and 10% on a relentless forex foundation.
Currency change charges are risky and tough to foretell. Using March 31, 2022 spot charges for the fourth quarter of fiscal 2022, forex is anticipated to be about $.05 accretive to diluted earnings per share.
The improve in possession of DECIEM is anticipated to be $.02 dilutive to diluted earnings per frequent share.
Reconciliation between GAAP and Non-GAAP – Net Sales Growth
(Unaudited)
Twelve Months Ending
June 30, 2022(F)
As Reported – GAAP(1)
7% – 9
%
Organic, Non-GAAP(2)
5% – 7
%
Impact of acquisitions, divestitures and model closures, internet
2
Impact of overseas forex
—
Returns related to restructuring and different actions
—
As Reported – GAAP(1)
7% – 9
%
(1)Includes returns related to restructuring and different actions
(2)Organic internet gross sales progress represents internet gross sales progress excluding returns related to restructuring and different actions; non-comparable impacts of already introduced acquisitions, divestitures and model closures; in addition to the impacts from forex.
(F)Represents forecast
Reconciliation between GAAP and Non-GAAP – Diluted Earnings Per Share (“EPS”)
(Unaudited)
Twelve Months Ending
June 30
2022(F)
2021
Variance
Forecasted/As Reported EPS – GAAP(1)
$6.54 – $6.70
$
7.79
(16%) – (14
%)
Non-GAAP
Restructuring and different prices
.12 – .18
.48
Changes in truthful worth of contingent consideration
—
(.01
)
Change in truthful worth of acquisition-related inventory choices (much less the portion attributable to
redeemable noncontrolling curiosity)
(.12
)
.09
Goodwill, different intangible and long-lived asset impairments
.45
.40
Other earnings
—
(2.30
)
Forecasted/Adjusted EPS – Non-GAAP
$7.05 – $7.15
$
6.45
9% – 11
%
Impact of overseas forex
(.05
)
Forecasted Adjusted Constant Currency EPS – Non-GAAP
$7.00 – $7.10
$
6.45
8% – 10
%
(1)Includes restructuring and different prices and changes
(F)Represents forecast
Conference Call The Estée Lauder Companies will host a convention name at 9:30 a.m. (ET) at present, May 3, 2022 to debate its outcomes. The dial-in quantity for the decision is 888-294-4716 within the U.S. or 706-902-0101 internationally (convention ID quantity: 9349743). The name can even be webcast reside at http://www.elcompanies.com/buyers/events-and-presentations.
Cautionary Note Regarding Forward-Looking Statements
Statements on this press launch, particularly these in “Outlook,” in addition to remarks by the CEO and different members of administration, might represent forward-looking statements inside the which means of the Private Securities Litigation Reform Act of 1995. Such statements might deal with our expectations relating to gross sales, earnings or different future monetary efficiency and liquidity, different efficiency measures, product introductions, entry into new geographic areas, info know-how initiatives, new strategies of sale, our long-term technique, restructuring and different prices and ensuing value financial savings, and future operations or working outcomes. These statements might comprise phrases like “count on,” “will,” “will doubtless outcome,” “would,” “consider,” “estimate,” “deliberate,” “plans,” “intends,” “might,” “ought to,” “may,” “anticipate,” “estimate,” “undertaking,” “projected,” “forecast,” and “forecasted” or related expressions.
Factors that might trigger precise outcomes to vary materially from our forward-looking statements embody the next:
(1)
elevated aggressive exercise from corporations within the skincare, make-up, perfume and hair care companies;
(2)
the Company’s capability to develop, produce and market new merchandise on which future working outcomes might rely and to efficiently deal with challenges within the Company’s enterprise;
(3)
consolidations, restructurings, bankruptcies and reorganizations within the retail trade inflicting a lower within the variety of shops that promote the Company’s merchandise, a rise within the possession focus inside the retail trade, possession of shops by the Company’s opponents or possession of opponents by the Company’s prospects which can be retailers and our incapability to gather receivables;
(4)
destocking and tighter working capital administration by retailers;
(5)
the success, or modifications in timing or scope, of latest product launches and the success, or modifications in timing or scope, of promoting, sampling and merchandising packages;
(6)
shifts within the preferences of customers as to the place and the way they store;
(7)
social, political and financial dangers to the Company’s overseas or home manufacturing, distribution and retail operations, together with modifications in overseas funding and commerce insurance policies and rules of the host international locations and of the United States;
(8)
modifications within the legal guidelines, rules and insurance policies (together with the interpretations and enforcement thereof) that have an effect on, or will have an effect on, the Company’s enterprise, together with these referring to its merchandise or distribution networks, modifications in accounting requirements, tax legal guidelines and rules, environmental or local weather change legal guidelines, rules or accords, commerce guidelines and customs rules, and the result and expense of authorized or regulatory proceedings, and any motion the Company might take consequently;
(9)
overseas forex fluctuations affecting the Company’s outcomes of operations and the worth of its overseas property, the relative costs at which the Company and its overseas opponents promote merchandise in the identical markets and the Company’s working and manufacturing prices outdoors of the United States;
(10)
modifications in world or native situations, together with these attributable to volatility within the world credit score and fairness markets, pure or man-made disasters, actual or perceived epidemics, provide chain challenges, inflation, or elevated power prices, that might have an effect on client buying, the willingness or capability of customers to journey and/or buy the Company’s merchandise whereas touring, the monetary energy of the Company’s prospects, suppliers or different contract counterparties, the Company’s operations, the price and availability of capital which the Company might have for brand spanking new gear, amenities or acquisitions, the returns that the Company is ready to generate on its pension property and the ensuing impression on funding obligations, the price and availability of uncooked supplies and the assumptions underlying the Company’s crucial accounting estimates;
(11)
impacts attributable to the COVID-19 pandemic, together with disruptions to our world enterprise;
(12)
cargo delays, commodity pricing, depletion of stock and elevated manufacturing prices ensuing from disruptions of operations at any of the amenities that manufacture the Company’s merchandise or on the Company’s distribution or stock facilities, together with disruptions which may be brought on by the implementation of knowledge know-how initiatives, or by restructurings;
(13)
actual property charges and availability, which can have an effect on the Company’s capability to extend or keep the variety of retail places at which the Company sells its merchandise and the prices related to the Company’s different amenities;
(14)
modifications in product combine to merchandise that are much less worthwhile;
(15)
the Company’s capability to amass, develop or implement new info and distribution applied sciences and initiatives on a well timed foundation and inside the Company’s value estimates and the Company’s capability to take care of steady operations of such methods and the safety of information and different info which may be saved in such methods or different methods or media;
(16)
the Company’s capability to capitalize on alternatives for improved effectivity, similar to publicly-announced methods and restructuring and cost-savings initiatives, and to combine acquired companies and understand worth therefrom;
(17)
penalties attributable to native or worldwide conflicts around the globe, in addition to from any terrorist motion, retaliation and the specter of additional motion or retaliation;
(18)
the timing and impression of acquisitions, investments and divestitures; and
(19)
extra elements as described within the Company’s filings with the Securities and Exchange Commission, together with its Annual Report on Form 10-Ok for the fiscal yr ended June 30, 2021.
The Company assumes no accountability to replace forward-looking statements made herein or in any other case.
The Estée Lauder Companies Inc. is without doubt one of the world’s main producers, entrepreneurs and sellers of high quality skincare, make-up, perfume and hair care merchandise. The Company’s merchandise are bought in roughly 150 international locations and territories underneath model names together with: Estée Lauder, Aramis, Clinique, Lab Series, Origins, Tommy Hilfiger, M·A·C, La Mer, Bobbi Brown, Donna Karan New York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Michael Kors, Darphin Paris, TOM FORD BEAUTY, Smashbox, Ermenegildo Zegna, AERIN, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+, and the DECIEM household of manufacturers, together with The Ordinary and NIOD.
ELC-F
ELC-E
CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited)
Three Months Ended
March 31
Percentage
Change
Nine Months Ended
March 31
Percentage
Change
($ in tens of millions, besides per share knowledge)
2022
2021
2022
2021
Net gross sales(A)
$
4,245
$
3,864
10
%
$
14,176
$
12,279
15
%
Cost of gross sales(A)
994
939
6
3,274
2,848
15
Gross revenue
3,251
2,925
11
10,902
9,431
16
Gross margin
76.6
%
75.7
%
76.9
%
76.8
%
Operating bills
Selling, basic and administrative(B)
2,275
2,145
6
7,554
6,761
12
Restructuring and different prices(A)
22
131
(83
)
41
172
(76
)
Goodwill impairment(C)
—
—
100
—
54
(100
)
Impairment of different intangible and long-lived property(C)
216
33
100
+
216
60
100
+
Total working bills
2,513
2,309
9
7,811
7,047
11
Operating expense margin
59.2
%
59.8
%
55.1
%
57.4
%
Operating earnings
738
616
20
3,091
2,384
30
Operating earnings margin
17.4
%
15.9
%
21.8
%
19.4
%
Interest expense
41
43
(5
)
125
131
(5
)
Interest earnings and funding earnings, internet
5
9
(44
)
19
40
(53
)
Other elements of internet periodic profit value
(1
)
2
(100
+)
(2
)
12
(100
+)
Other earnings
—
—
—
1
—
100
Earnings earlier than earnings taxes
703
580
21
2,988
2,281
31
Provision for earnings taxes
130
122
7
630
421
50
Net earnings
573
458
25
2,358
1,860
27
Net earnings attributable to noncontrolling pursuits
(3
)
(2
)
(50
)
(8
)
(8
)
—
Net earnings attributable to redeemable noncontrolling
curiosity
(12
)
—
100
(12
)
—
100
Net earnings attributable to The Estée Lauder Companies
Inc.
$
558
$
456
22
%
$
2,338
$
1,852
26
%
Net earnings attributable to The Estée Lauder Companies
Inc. per frequent share
Basic
$
1.55
$
1.25
24
%
$
6.48
$
5.10
27
%
Diluted
$
1.53
$
1.24
24
%
$
6.39
$
5.03
27
%
Weighted-average frequent shares excellent
Basic
359.2
363.6
360.7
362.9
Diluted
363.6
369.0
365.8
368.1
(A)In August 2020, the Company introduced a two-year restructuring program, Post-COVID Business Acceleration Program (the “PCBA Program”), designed to realign its enterprise to handle the dramatic shifts to its distribution panorama and client behaviors within the wake of the COVID-19 pandemic. The PCBA Program will assist enhance effectivity and effectiveness by rebalancing assets to progress areas of status magnificence. It will additional strengthen the Company by constructing upon the foundational capabilities by which the Company has invested. The PCBA Program’s essential areas of focus embody accelerating the shift to on-line with the realignment of the Company’s distribution community reflecting freestanding retailer and sure division retailer closures, with a deal with North America and Europe, the Middle East & Africa; the discount in brick-and-mortar level of sale workers and associated help workers; and the redesign of the Company’s regional branded advertising and marketing organizations, plus choose alternatives in world manufacturers and features. This program is anticipated to place the Company to higher execute its long-term technique whereas strengthening its monetary flexibility. The Company plans to approve particular initiatives underneath the PCBA Program by way of fiscal 2022 and expects to considerably full these initiatives by way of fiscal 2023. The Company expects that the PCBA Program will lead to associated restructuring and different prices totaling between $400 million and $500 million, earlier than taxes.
The Company considerably accomplished initiatives permitted underneath the Leading Beauty Program (the “LBF Program”) by way of fiscal 2021. Additional details about the LBF Program is included within the notes to consolidated monetary statements within the Company’s Annual Report on Form 10-Ok for the fiscal yr ended June 30, 2021.
(B)For the three and 9 months ended March 31, 2022, the Company recorded $(60) million ($(48) million, much less the portion attributable to redeemable noncontrolling curiosity and internet of tax) and $(58) million ($(46) million, much less the portion attributable to redeemable noncontrolling curiosity and internet of tax), respectively, of earnings associated to the change in truthful worth of acquisition-related inventory choices associated to DECIEM. The Company recorded $2 million (gross and internet of tax) of earnings inside promoting, basic and administrative bills for the 9 months ended March 31, 2021 to replicate modifications within the truthful worth of its contingent consideration associated to its fiscal 2016 acquisition.
(C)During the fiscal 2022 third quarter, given the lower-than-expected outcomes from worldwide enlargement to areas that proceed to be impacted by COVID-19, the Company made revisions to the inner forecasts referring to its GLAMGLOW reporting unit. The Company concluded that the modifications in circumstances within the reporting unit triggered the necessity for an interim impairment overview of its trademark intangible asset. As of March 31, 2022, the remaining carrying worth of the trademark intangible asset was not recoverable and the Company recorded an impairment cost of $11 million decreasing the carrying worth to zero.
During the fiscal 2022 third quarter, given the lower-than-expected progress inside key geographic areas and channels for Dr.Jart+ that proceed to be impacted by the unfold of COVID-19 variants and resurgence in circumstances and the potential future impacts referring to the uncertainty of the period and severity of COVID-19 impacting the monetary efficiency of the model, the decrease than anticipated progress in key retail channels for DECIEM, and the decrease than anticipated outcomes from worldwide enlargement to areas that proceed to be impacted by COVID-19 for Too Faced, the Company made revisions to the inner forecasts referring to its Dr. Jart+, DECIEM and Too Faced reporting items.
The Company concluded that the modifications in circumstances within the reporting items triggered the necessity for interim impairment critiques of their logos and goodwill. These modifications in circumstances had been additionally an indicator that the carrying quantities of Dr.Jart+’s, DECIEM’s and Too Faced’s long-lived property, together with buyer lists, is probably not recoverable. Accordingly, the Company carried out interim impairment exams for the logos and a recoverability take a look at for the long-lived property as of February 28, 2022. The Company concluded that the carrying quantities of the long-lived property had been recoverable. For the Dr.Jart+ reporting unit, the Company additionally concluded that the carrying worth of the trademark intangible asset exceeded its estimated truthful worth, which was decided using the relief-from-royalty methodology to find out discounted projected future money flows, and recorded an impairment cost. For the Too Faced and DECIEM reporting items, because the carrying values of the logos didn’t exceed their estimated truthful values, which had been decided using the relief-from-royalty methodology to find out discounted projected future money flows, the Company didn’t document impairment prices. As of March 31, 2022, the estimated truthful values of Too Faced’s and DECIEM’s logos exceeded their carrying values by 13% and three%, respectively. For the Too Faced and DECIEM trademark intangible property, if all different assumptions are held fixed, a rise of 100 foundation factors and 50 foundation factors, respectively, within the weighted common value of capital would lead to an impairment cost. After adjusting the carrying values of the logos, the Company accomplished interim quantitative impairment exams for goodwill. As the estimated truthful worth of the Dr.Jart+, DECIEM and Too Faced reporting items had been in extra of their carrying values, the Company concluded that the carrying quantities of the goodwill had been recoverable and didn’t document a goodwill impairment cost associated to those reporting items. The truthful worth of those reporting items had been primarily based upon an equal weighting of the earnings and market approaches, using estimated money flows and a terminal worth, discounted at a charge of return that displays the relative threat of the money flows, in addition to valuation multiples derived from comparable publicly traded corporations which can be utilized to working efficiency of the reporting items. The vital assumptions utilized in these approaches embody income progress charges and revenue margins, terminal values, weighted common value of capital used to low cost future money flows and royalty charges for logos. The most important unobservable enter used to estimate the truthful worth of the Dr. Jart+ trademark intangible asset was the weighted-average value of capital, which was 10.5%.
For the three and 9 months ended March 31, 2022, different intangible asset impairment prices had been $216 million ($164 million, much less the portion attributable to noncontrolling curiosity and internet of tax), with an impression of $.45 per frequent share in each intervals.
During November 2020, given the precise and the estimate of the potential future impacts referring to the uncertainty of the period and severity of COVID-19 impacting the Company and decrease than anticipated outcomes from geographic enlargement, the Company made additional revisions to the inner forecasts referring to its GLAMGLOW reporting unit, triggering a necessity for an interim impairment overview. As a results of this overview, the Company recorded $81 million ($63 million, internet of tax) of goodwill and different intangible asset impairments, with an impression of $.18 per frequent share for the 9 months ended March 31, 2021.
During March 2021, the Company acknowledged $33 million ($27 million, internet of tax) of long-lived asset impairments, included in impairments of different intangible and long-lived property, within the accompanying consolidated statements of earnings (loss) for the three and 9 months ended March 31, 2021, associated different property (i.e. rights related to industrial working leases), working lease ROU property and the associated property, plant and gear in sure freestanding shops primarily in Europe as a result of impression of the COVID-19 pandemic.
For the three months ended March 31, 2021, whole long-lived asset impairment prices had been $33 million with an impression of $.07 per frequent share, and for the 9 months ended March 31, 2021, whole goodwill, different intangible and long-lived asset impairment prices had been $114 million with an impression of $.25 per frequent share.
Returns and Charges Associated With Restructuring and Other Activities and Other Adjustments
(Unaudited)
Three Months Ended March 31, 2022
Sales
Returns
Cost of
Sales
Operating Expenses
Total
After
Redeemable
Noncontrolling
Interest and Tax
Diluted
EPS
(In tens of millions, besides per share knowledge)
Restructuring
Charges
Other Charges/
Adjustments
Leading Beauty Forward
$
—
$
—
$
(1
)
$
5
$
4
$
3
$
.01
PCBA Program
1
—
17
1
19
14
.04
Change in truthful worth of acquisition-related inventory
choices
—
—
—
(60
)
(60
)
(48
)
(.13
)
Other intangible asset impairments
—
—
—
216
216
164
.45
Total
$
1
$
—
$
16
$
162
$
179
$
133
$
.37
Nine Months Ended March 31, 2022
Sales
Returns
Cost of
Sales
Operating Expenses
Total
After
Redeemable
Noncontrolling
Interest and Tax
Diluted
EPS
(In tens of millions, besides per share knowledge)
Restructuring
Charges
Other Charges/
Adjustments
Leading Beauty Forward
$
—
$
2
$
(2
)
$
13
$
13
$
10
$
.03
PCBA Program
3
(2
)
24
6
31
24
.06
Change in truthful worth of acquisition-related inventory
choices
—
—
—
(58
)
(58
)
(46
)
(.13
)
Other intangible asset impairments
—
—
—
216
216
164
.45
Other earnings
—
—
—
(1
)
(1
)
(1
)
—
Total
$
3
$
—
$
22
$
176
$
201
$
151
$
.41
Three Months Ended March 31, 2021
Sales
Returns
Cost of
Sales
Operating Expenses
Total
After Tax
Diluted
EPS
(In tens of millions, besides per share knowledge)
Restructuring
Charges
Other Charges/
Adjustments
Leading Beauty Forward
$
—
$
(1
)
$
3
$
4
$
6
$
5
$
.01
PCBA Program
10
5
121
3
139
111
.30
Long-lived asset impairments
—
—
—
33
33
27
.07
Total
$
10
$
4
$
124
$
40
$
178
$
143
$
.38
Nine Months Ended March 31, 2021
Sales
Returns
Cost of
Sales
Operating Expenses
Total
After Tax
Diluted
EPS
(In tens of millions, besides per share knowledge)
Restructuring
Charges
Other Charges/
Adjustments
Leading Beauty Forward
$
—
$
4
$
(7
)
$
9
$
6
$
5
$
.01
PCBA Program
10
5
167
3
185
144
.40
Changes in truthful worth of contingent consideration
—
—
—
(2
)
(2
)
(2
)
(.01
)
Goodwill, different intangible and long-lived asset
impairments
—
—
—
114
114
90
.25
Total
$
10
$
9
$
160
$
124
$
303
$
237
$
.65
Results by Product Category
(Unaudited)
Nine Months Ended March 31
Net Sales
Percentage Change
Operating
Income (Loss)
Percentage
Change
($ in tens of millions)
2022
2021
Reported
Basis
Constant
Currency
2022
2021
Reported
Basis
Skin Care
$
8,003
$
7,113
13
%
12
%
$
2,466
$
2,453
1
%
Makeup
3,674
3,243
13
14
228
(115
)
100
+
Fragrance
1,987
1,478
34
35
446
248
80
Hair Care
475
418
14
14
(8
)
(10
)
100
+
Other
40
37
8
8
3
(1
)
100
+
Subtotal
$
14,179
$
12,289
15
%
15
%
$
3,135
$
2,575
22
%
Returns/prices related to
restructuring and different actions and
changes
(3
)
(10
)
(44
)
(191
)
Total
$
14,176
$
12,279
15
%
15
%
$
3,091
$
2,384
30
%
Organic Net Sales Growth – Reconciliation to GAAP
(Unaudited)
Nine Months Ended March 31
2022 vs. 2021
Organic
Net Sales
Growth
(Non-GAAP)(1)
Impact of
Acquisitions,
Divestitures and
Brand Closures, Net
Impact of
Foreign
Currency
Net Sales
Growth
(GAAP)
Skin Care
7
%
5
%
1
%
13
%
Makeup
14
—
(1
)
13
Fragrance
35
—
(1
)
34
Hair Care
14
—
—
14
Other
3
5
—
8
Subtotal
13
%
2
%
—
%
15
%
Returns related to restructuring and different actions
—
Total
13
%
2
%
—
%
15
%
(1)Organic internet gross sales progress represents internet gross sales progress excluding returns related to restructuring and different actions; non-comparable impacts of acquisitions, divestitures and model closures (notably DECIEM and BECCA); in addition to the impacts from forex.
Results by Geographic Region
(Unaudited)
Nine Months Ended March 31
Net Sales
Percentage Change
Operating
Income (Loss)
Percentage
Change
($ in tens of millions)
2022
2021
Reported
Basis
Constant
Currency
2022
2021
Reported
Basis
The Americas
$
3,547
$
2,837
25
%
25
%
$
1,044
$
256
100
+%
Europe, the Middle East & Africa
6,201
5,276
18
18
1,366
1,429
(4
)
Asia/Pacific
4,431
4,176
6
5
725
890
(19
)
Subtotal
$
14,179
$
12,289
15
%
15
%
$
3,135
$
2,575
22
%
Returns/prices related to restructuring
and different actions and changes
(3
)
(10
)
(44
)
(191
)
Total
$
14,176
$
12,279
15
%
15
%
$
3,091
$
2,384
30
%
Organic Net Sales Growth – Reconciliation to GAAP
(Unaudited)
Nine Months Ended March 31
2022 vs. 2021
Organic
Net Sales
Growth
(Non-GAAP)(1)
Impact of
Acquisitions,
Divestitures and
Brand Closures, Net
Impact of
Foreign
Currency
Net Sales
Growth
(GAAP)
The Americas
19
%
6
%
—
%
25
%
Europe, the Middle East & Africa
16
2
—
18
Asia/Pacific
4
1
1
6
Subtotal
13
%
2
%
—
%
15
%
Returns related to restructuring and different actions
—
Total
13
%
2
%
—
%
15
%
(1)Organic internet gross sales progress represents internet gross sales progress excluding returns related to restructuring and different actions; non-comparable impacts of acquisitions, divestitures and model closures (notably DECIEM and BECCA); in addition to the impacts from forex.
This earnings launch contains some non-GAAP monetary measures referring to prices related to restructuring and different actions and referring to natural internet gross sales. Included herein are reconciliations between the non-GAAP monetary measures and essentially the most immediately comparable GAAP measures for sure consolidated statements of earnings accounts earlier than and after this stuff. The Company makes use of sure non-GAAP monetary measures, amongst different monetary measures, to guage its working efficiency, which symbolize the way in which the Company conducts and views its enterprise. Management believes that excluding sure gadgets that aren’t comparable from interval to interval, or don’t replicate the Company’s underlying ongoing enterprise, gives transparency for such gadgets and helps buyers and others evaluate and analyze working efficiency from interval to interval. In the longer term, the Company expects to incur prices or make changes related in nature to these offered herein; nevertheless, the impression to the Company’s ends in a given interval could also be extremely variable and tough to foretell. Our non-GAAP monetary measures is probably not similar to equally titled measures utilized by, or decided in a fashion according to, different corporations. While the Company considers the non-GAAP measures helpful in analyzing its outcomes, they aren’t meant to switch, or act as an alternative to, any presentation included within the consolidated monetary statements ready in conformity with GAAP.
The Company operates on a world foundation, with nearly all of its internet gross sales generated outdoors the United States. Accordingly, fluctuations in overseas forex change charges can have an effect on the Company’s outcomes of operations. Therefore, the Company presents sure internet gross sales, working outcomes and diluted earnings per share info excluding the impact of overseas forex charge fluctuations to offer a framework for assessing the efficiency of its underlying enterprise outdoors the United States. Constant forex info compares outcomes between intervals as if change charges had remained fixed period-over-period. The Company calculates fixed forex info by translating current-period outcomes utilizing prior-year interval month-to-month common overseas forex change charges and adjusting for the period-over-period impression of overseas forex money circulate hedging actions.
Reconciliation of Certain Consolidated Statements of Earnings Accounts
Before and After Returns, Charges and Other Adjustments
(Unaudited)
Three Months Ended March 31
2022
2021
% Change
($ in tens of millions, besides per
share knowledge)
As
Reported
Returns/
Charges/
Adjustments
Non-
GAAP
Impact of
Foreign
Currency
Translation
Non-
GAAP,
Constant
Currency
As
Reported
Returns/
Charges/
Adjustments
Non-
GAAP
Non-
GAAP
Non-
GAAP,
Constant
Currency
Net gross sales
$
4,245
$
1
$
4,246
$
52
$
4,298
$
3,864
$
10
$
3,874
10
%
11
%
Cost of gross sales
994
—
994
13
1,007
939
(4
)
935
Gross revenue
3,251
1
3,252
39
3,291
2,925
14
2,939
11
%
12
%
Gross margin
76.6
%
76.6
%
76.6
%
75.7
%
75.9
%
Operating bills
2,513
(178
)
2,335
37
2,372
2,309
(164
)
2,145
9
%
11
%
Operating expense
margin
59.2
%
55.0
%
55.2
%
59.8
%
55.4
%
Operating earnings
738
179
917
2
919
616
178
794
15
%
16
%
Operating earnings
margin
17.4
%
21.6
%
21.4
%
15.9
%
20.5
%
Other earnings
—
—
—
—
—
—
—
—
Provision for earnings
taxes
130
58
188
—
188
122
35
157
20
%
20
%
Net earnings
attributable to The
Estée Lauder
Companies Inc.
$
558
$
133
$
691
$
3
$
694
$
456
$
143
$
599
15
%
16
%
Diluted EPS
$
1.53
$
.37
$
1.90
$
.01
$
1.91
$
1.24
$
.38
$
1.62
17
%
18
%
Nine Months Ended March 31
2022
2021
% Change
($ in tens of millions, besides per
share knowledge)
As
Reported
Returns/
Charges/
Adjustments
Non-
GAAP
Impact of
Foreign
Currency
Translation
Non-
GAAP,
Constant
Currency
As
Reported
Returns/
Charges/
Adjustments
Non-
GAAP
Non-
GAAP
Non-
GAAP,
Constant
Currency
Net gross sales
$
14,176
$
3
$
14,179
$
(32
)
$
14,147
$
12,279
$
10
$
12,289
15
%
15
%
Cost of gross sales
3,274
—
3,274
(4
)
3,270
2,848
(9
)
2,839
Gross revenue
10,902
3
10,905
(28
)
10,877
9,431
19
9,450
15
%
15
%
Gross margin
76.9
%
76.9
%
76.9
%
76.8
%
76.9
%
Operating bills
7,811
(199
)
7,612
(5
)
7,607
7,047
(284
)
6,763
13
%
12
%
Operating expense
margin
55.1
%
53.7
%
53.8
%
57.4
%
55.0
%
Operating earnings
3,091
202
3,293
(23
)
3,270
2,384
303
2,687
23
%
22
%
Operating earnings
margin
21.8
%
23.2
%
23.1
%
19.4
%
21.9
%
Other earnings
1
(1
)
—
—
—
—
—
—
Provision for earnings
taxes
630
62
692
(6
)
686
421
66
487
42
%
41
%
Net earnings
attributable to The
Estée Lauder
Companies Inc.
$
2,338
$
151
$
2,489
$
(16
)
$
2,473
$
1,852
$
237
$
2,089
19
%
18
%
Diluted EPS
$
6.39
$
.41
$
6.80
$
(.04
)
$
6.76
$
5.03
$
.65
$
5.68
20
%
19
%
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, besides the place famous)
March 31,
2022
June 30, 2021
March 31,
2021
($ in tens of millions)
(Audited)
ASSETS
Cash and money equivalents
$
3,836
$
4,958
$
6,399
Accounts receivable, internet
2,209
1,702
1,735
Inventory and promotional merchandise
2,830
2,505
2,134
Prepaid bills and different present property
625
603
729
Total present property
9,500
9,768
10,997
Property, plant and gear, internet
2,493
2,280
2,106
Operating lease right-of-use property
2,034
2,190
2,212
Other property
7,332
7,733
4,585
Total property
$
21,359
$
21,971
$
19,900
LIABILITIES AND EQUITY
Current debt
$
269
$
32
$
471
Accounts payable
1,470
1,692
1,277
Operating lease liabilities
388
379
372
Other accrued liabilities
3,287
3,195
3,077
Total present liabilities
5,414
5,298
5,197
Long-term debt
5,188
5,537
5,487
Long-term working lease liabilities
1,948
2,151
2,198
Other noncurrent liabilities
1,758
2,037
1,460
Total noncurrent liabilities
8,894
9,725
9,145
Redeemable noncontrolling curiosity
865
857
—
Total fairness
6,186
6,091
5,558
Total liabilities and fairness
$
21,359
$
21,971
$
19,900
SELECT CASH FLOW DATA
(Unaudited)
Nine Months Ended
March 31
($ in tens of millions)
2022
2021
Net earnings
$
2,358
$
1,860
Adjustments to reconcile internet earnings to internet money flows from working
actions:
Depreciation and amortization
546
475
Deferred earnings taxes
(90
)
(103
)
Goodwill, different intangible and long-lived asset impairments
216
114
Other gadgets
315
392
Changes in working property and liabilities:
Increase in accounts receivable, internet
(548
)
(506
)
Decrease (improve) in stock and promotional merchandise
(398
)
13
Increase in different property, internet
(61
)
(122
)
Increase (lower) in accounts payable and different liabilities, internet
(369
)
654
Net money flows offered by working actions
$
1,969
$
2,777
Other Investing and Financing Sources (Uses):
Capital expenditures
$
(658
)
$
(386
)
Settlement of internet funding hedges
108
(175
)
Payments to amass treasury inventory
(1,998
)
(316
)
Dividends paid
(624
)
(561
)
Proceeds (repayments) of present debt, internet
(4
)
(746
)
Proceeds from issuance of long-term debt, internet
—
596
https://www.businesswire.com/information/dwelling/20220503005105/en/Strong-Fiscal-2022-Third-Quarter-Results-Amid-Market-Headwinds
