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New York, NY 10153
THE ESTÉE LAUDER COMPANIES REPORTS
FISCAL 2017 SECOND QUARTER RESULTS
REPORTED NET SALES ROSE 3%, INCREASED 5% IN CONSTANT CURRENCY
REPORTED EPS $1.15, ADJUSTED EPS $1.22
New York, NY, February 2, 2017 - The Estée Lauder Companies Inc. (NYSE: EL) today reported net sales of $3.21 billion for its second quarter ended December 31, 2016, a 3% increase compared with $3.12 billion in the prior-year quarter. Net earnings were $428 million, compared with $447 million last year. Diluted net earnings per common share were $1.15, including the effect of restructuring and other charges, compared with $1.19 reported in the prior year.
Excluding the impact of foreign currency translation, net sales increased 5%. For the quarter, the negative impact of foreign currency translation on diluted net earnings per common share was $.06. Adjusting for restructuring and other charges, diluted net earnings per common share for the three months ended December 31, 2016 were $1.22, and in constant currency rose 5% to $1.28.
Incremental sales from the Companys recent acquisitions of By Kilian, BECCA and Too Faced contributed approximately 90 basis points to sales growth, of which less than half is attributable to Too Faced.
During the fiscal 2017 second quarter, the Company recorded restructuring and other charges of $41 million ($26 million after tax), equal to $.07 per diluted share, in connection with its previously announced Leading Beauty Forward initiative. During the fiscal 2016 second quarter, the Company recorded charges of $19 million ($12 million after tax), equal to $.03 per share, in connection with its initiative to transform its global technology infrastructure. See table on page 11.
Fabrizio Freda, President and Chief Executive Officer, said, Our second quarter sales growth accelerated as planned, reflecting the benefits of our portfolio diversity by brand, channel, product category and country. Our small, mid-sized and luxury brands continued to lead growth, contributing strong sales increases, and recent acquisitions added incremental sales. Additionally, among our large brands, Estée Lauder and M·A·C each grew in constant currency. We achieved strong double-digit growth in our most profitable channels including travel retail, online and specialty-multi. Sales growth accelerated in most product categories and every geographic region in constant currency. We have strategically invested in these growth engines to produce strong results, as well as position us for continued future success. For the quarter, our profits were higher than expected, reflecting our ability to leverage sales growth and manage expenses.
The following information was filed by Estee Lauder Companies Inc (EL) on Thursday, February 2, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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