– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
Net Sales Increased 10% and Diluted EPS Increased 24% to $1.53
Organic Net Sales1 Grew 9% and Adjusted Diluted EPS Rose 18% in Constant Currency
Western Markets and Brick-and-Mortar Outperformed
NEW YORK--(BUSINESS WIRE)--The Estée Lauder Companies Inc. (NYSE: EL) today reported net sales of $4.25 billion for its third quarter ended March 31, 2022, an increase of 10% from $3.86 billion in the prior-year period. Organic net sales increased 9%. Net sales grew in every product category, largely reflecting continued recovery in brick-and-mortar retail stores, driven by double-digit growth in The Americas and Europe, the Middle East & Africa (“EMEA”) regions, as well as growth in global online2. The Company delivered strong sales growth in the context of increased COVID-related restrictions in China beginning mid-March 2022. These temporary restrictions reduced consumer traffic and travel as well as limited the Company’s capacity to ship orders from its distribution facilities.
The Company reported net earnings3 of $0.56 billion, compared with net earnings3 of $0.46 billion in the prior-year period. Diluted net earnings per common share was $1.53, compared with $1.24 reported in the prior-year period. Excluding restructuring and other charges and adjustments as detailed on page 3, adjusted diluted earnings per common share was $1.90, an 18% increase in constant currency.
Fabrizio Freda, President and Chief Executive Officer said, “We delivered strong sales growth and better-than-expected profitability in the third quarter of fiscal 2022 in the face of accelerated headwinds as the quarter evolved, including COVID restrictions in the Asia/Pacific region. Every category grew organically, led by Fragrance’s outstanding performance globally and the makeup renaissance in western markets. Eleven brands contributed double-digit organic sales growth and further demonstrated our diversification, empowered by our multiple engines of growth strategy. Consumer demand remained robust even in this more inflationary environment.
| ________________ | |
1 |
Organic net sales represents net sales excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures; as well as the impacts from currency. We believe the Non-GAAP measure of organic net sales growth provides year-over-year sales comparisons on a consistent basis. See page 2 for reconciliations to GAAP. |
2 |
Online sales discussed throughout includes sales of our products from our websites and third-party platforms, as well as estimated sales of our products sold through our retailers’ websites. |
3 |
Net earnings attributable to The Estée Lauder Companies Inc. which excludes net (earnings) attributable to noncontrolling interests, as well as redeemable noncontrolling interest beginning in the fourth quarter of fiscal 2021. |
“The Americas and EMEA regions outperformed our overall sales growth. We capitalized on re-opening to deliver double-digit organic sales growth, leveraging our high-touch services, breakthrough innovation, and desirable hero franchises. In the Asia/Pacific region, several markets prospered, led by Japan while our China results were pressured by COVID restrictions.”
Freda concluded, “Given our outstanding performance year-to-date, we expect to deliver a record year in fiscal 2022 despite temporary COVID-driven headwinds that reduced our fourth quarter outlook. We are confident that our business in China will rebound when COVID abates and accelerate our momentum.”
COVID-19 Business Update The COVID-19 pandemic continued to disrupt the Company’s operating environment globally, primarily impacting retail traffic, travel, supply chain, inventory levels and other logistics during the fiscal 2022 third quarter. The resurgence of COVID-19 cases in many Chinese provinces led to restrictions late in the fiscal 2022 third quarter to prevent further spread of the virus. Consequently, retail traffic, travel, and distribution capabilities were temporarily curtailed. The Company’s distribution facilities in Shanghai operated with limited capacity to fulfill brick-and-mortar and online orders beginning in mid-March 2022.
Fiscal 2022 Third Quarter Results Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably the acquisition of the majority interest in DECIEM and closure of BECCA); as well as the impacts from currency. Category and region commentary reflect organic performance.
Reconciliation between GAAP and Non-GAAP Net Sales Growth
|
||
|
|
|
|
Three Months Ended
|
|
As Reported - GAAP(1) |
10 |
% |
|
|
|
Organic, Non-GAAP(2) |
9 |
% |
Impact of acquisitions, divestitures and brand closures, net |
2 |
|
Impact of foreign currency |
(1 |
) |
Returns associated with restructuring and other activities |
— |
|
As Reported - GAAP(1) |
10 |
% |
(1)Includes returns associated with restructuring and other activities |
||
(2)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably DECIEM and BECCA); as well as the impacts from currency. |
||
Adjusted diluted earnings per common share excludes restructuring and other charges and adjustments as detailed in the following table.
Reconciliation between GAAP and Non-GAAP - Diluted Earnings Per Share (“EPS”)
|
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|
|
|
||||
|
Three Months Ended |
||||||
|
March 31 |
|
|||||
|
|
2022 |
|
|
2021 |
Growth |
|
As Reported EPS - GAAP(1) |
$ |
1.53 |
|
$ |
1.24 |
24 |
% |
|
|
|
|
||||
Non-GAAP |
|
|
|
||||
Restructuring and other charges |
|
.05 |
|
|
.31 |
|
|
Changes in fair value of contingent consideration |
|
— |
|
|
— |
|
|
Change in fair value of acquisition-related stock options (less the portion attributable to |
|||||||
redeemable noncontrolling interest) |
|
(.13 |
) |
|
— |
|
|
Other intangible and long-lived asset impairments |
|
.45 |
|
|
.07 |
|
|
Adjusted EPS - Non-GAAP |
$ |
1.90 |
|
$ |
1.62 |
17 |
% |
Impact of foreign currency on earnings per share |
|
.01 |
|
|
|
||
Adjusted Constant Currency EPS - Non-GAAP |
$ |
1.91 |
|
$ |
1.62 |
18 |
% |
(1)Includes restructuring and other charges and adjustments |
|
|
|||||
Net sales in the Company’s product categories and regions outside of the United States were unfavorably impacted by a stronger U.S. dollar in relation to most currencies. Operating income was favorably impacted by the stronger U.S. dollar.
Total reported operating income was $0.74 billion, a 20% increase from $0.62 billion in the prior-year period. Adjusted operating income in constant currency increased 16%, primarily reflecting higher net sales and excluding the following items:
Results by Product Category
|
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|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended March 31 |
|||||||||||||||||
|
Net Sales |
Percentage Change |
Operating
|
Percentage
|
||||||||||||||
($ in millions) |
2022 |
2021 |
Reported
|
Constant
|
2022 |
2021 |
Reported
|
|||||||||||
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/charges associated with |
||||||||||||||||||
restructuring and other activities and |
||||||||||||||||||
adjustments |
|
(1 |
) |
|
(10 |
) |
|
|
|
(23 |
) |
|
(145 |
) |
|
|||
Total |
$ |
4,245 |
|
$ |
3,864 |
|
10 |
% |
11 |
% |
$ |
738 |
|
$ |
616 |
|
20 |
% |
Organic Net Sales Growth - Reconciliation to GAAP
|
||||||||
|
Three Months Ended March 31
|
|||||||
|
Organic
|
Impact of
|
Impact of
|
Net Sales
|
||||
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 associated with restructuring and other activities |
|
|
|
— |
|
|||
Total |
9 |
% |
2 |
% |
(1 |
)% |
10 |
% |
(1)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably DECIEM and BECCA); as well as the impacts from currency. |
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Results by Geographic Region
|
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|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended March 31 |
|||||||||||||||||
|
Net Sales |
Percentage Change |
Operating
|
Percentage
|
||||||||||||||
($ in millions) |
2022 |
2021 |
Reported
|
Constant
|
2022 |
2021 |
Reported
|
|||||||||||
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/charges associated with restructuring and |
||||||||||||||||||
other activities and adjustments |
|
(1 |
) |
|
(10 |
) |
|
|
|
(23 |
) |
|
(145 |
) |
|
|||
Total |
$ |
4,245 |
|
$ |
3,864 |
|
10 |
% |
11 |
% |
$ |
738 |
|
$ |
616 |
|
20 |
% |
Organic Net Sales Growth - Reconciliation to GAAP
|
||||||||
|
Three Months Ended March 31
|
|||||||
|
Organic
|
Impact of
|
Impact of
|
Net Sales
|
||||
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 associated with restructuring and other activities |
|
|
|
— |
|
|||
Total |
9 |
% |
2 |
% |
(1 |
)% |
10 |
% |
(1)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably DECIEM and BECCA); as well as the impacts from currency. |
||||||||
Europe, the Middle East & Africa
Nine-Month Results
| ________________ | |
4 |
Net earnings attributable to The Estée Lauder Companies Inc. which excludes net (earnings) attributable to noncontrolling interests, as well as redeemable noncontrolling interest beginning in the fourth quarter of fiscal 2021. |
Outlook The Company is revising its full fiscal year outlook, reflecting both outstanding performance year-to-date and additional headwinds that are impacting the fourth quarter of fiscal 2022, including the COVID-related restrictions in China, that are also affecting its travel retail business, and the impact of the invasion of Ukraine.
With multiple engines of growth across regions, brands, product categories and channels, the Company is well-positioned to continue to drive a gradual acceleration as COVID abates and market dynamics support it. The Company expects to invest in areas to support the acceleration, including advertising, online, research and development and supply chain, to drive growth in areas of opportunity and help nurture emerging trends in the rest of the business.
The full year outlook reflects the following assumptions:
The Company is mindful of ongoing risks related to the COVID-19 pandemic as well as risks related to social, economic and political matters, including restructurings and bankruptcies in the retail industry, geopolitical tensions, regulatory developments, global security issues, currency volatility, general economic challenges, including increasing inflationary pressures and supply chain disruptions, and changes in consumer preferences that affect consumer spending in certain countries, channels and travel corridors.
Longer-term, the Company expects to return to its growth targets of 6% to 8% sales growth, 50 basis points of operating margin expansion and double-digit adjusted diluted earnings per share growth in constant currency after a period of normalization as the impacts of the COVID-19 pandemic subside.
Full Year Fiscal 2022
Earnings per Share Outlook
Reconciliation between GAAP and Non-GAAP - Net Sales Growth
|
||
|
|
|
|
Twelve Months Ending |
|
|
June 30, 2022(F) |
|
As Reported - GAAP(1) |
7% - 9 |
% |
|
|
|
Organic, Non-GAAP(2) |
5% - 7 |
% |
Impact of acquisitions, divestitures and brand closures, net |
2 |
|
Impact of foreign currency |
— |
|
Returns associated with restructuring and other activities |
— |
|
As Reported - GAAP(1) |
7% - 9 |
% |
(1)Includes returns associated with restructuring and other activities |
||
(2)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of already announced acquisitions, divestitures and brand closures; as well as the impacts from currency. |
||
(F)Represents forecast |
||
Reconciliation between GAAP and Non-GAAP - Diluted Earnings Per Share (“EPS”)
|
|||||||
|
|
|
|
||||
|
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 other charges |
.12 - .18 |
|
.48 |
|
|
|
|
Changes in fair value of contingent consideration |
— |
|
|
(.01 |
) |
|
|
Change in fair value of acquisition-related stock options (less the portion attributable to |
|
|
|
||||
redeemable noncontrolling interest) |
(.12 |
) |
|
.09 |
|
|
|
Goodwill, other intangible and long-lived asset impairments |
.45 |
|
|
.40 |
|
|
|
Other income |
— |
|
|
(2.30 |
) |
|
|
Forecasted/Adjusted EPS - Non-GAAP |
$7.05 - $7.15 |
$ |
6.45 |
|
9% - 11 |
% |
|
Impact of foreign currency |
(.05 |
) |
|
|
|
||
Forecasted Adjusted Constant Currency EPS - Non-GAAP |
$7.00 - $7.10 |
$ |
6.45 |
|
8% - 10 |
% |
|
(1)Includes restructuring and other charges and adjustments |
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(F)Represents forecast |
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Conference Call The Estée Lauder Companies will host a conference call at 9:30 a.m. (ET) today, May 3, 2022 to discuss its results. The dial-in number for the call is 888-294-4716 in the U.S. or 706-902-0101 internationally (conference ID number: 9349743). The call will also be webcast live at http://www.elcompanies.com/investors/events-and-presentations.
Cautionary Note Regarding Forward-Looking Statements Statements in this press release, in particular those in “Outlook,” as well as remarks by the CEO and other members of management, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may address our expectations regarding sales, earnings or other future financial performance and liquidity, other performance measures, product introductions, entry into new geographic regions, information technology initiatives, new methods of sale, our long-term strategy, restructuring and other charges and resulting cost savings, and future operations or operating results. These statements may contain words like “expect,” “will,” “will likely result,” “would,” “believe,” “estimate,” “planned,” “plans,” “intends,” “may,” “should,” “could,” “anticipate,” “estimate,” “project,” “projected,” “forecast,” and “forecasted” or similar expressions.
Factors that could cause actual results to differ materially from our forward-looking statements include the following:
(1) |
increased competitive activity from companies in the skin care, makeup, fragrance and hair care businesses; |
|
(2) |
the Company’s ability to develop, produce and market new products on which future operating results may depend and to successfully address challenges in the Company’s business; |
|
(3) |
consolidations, restructurings, bankruptcies and reorganizations in the retail industry causing a decrease in the number of stores that sell the Company’s products, an increase in the ownership concentration within the retail industry, ownership of retailers by the Company’s competitors or ownership of competitors by the Company’s customers that are retailers and our inability to collect receivables; |
|
(4) |
destocking and tighter working capital management by retailers; |
|
(5) |
the success, or changes in timing or scope, of new product launches and the success, or changes in timing or scope, of advertising, sampling and merchandising programs; |
|
(6) |
shifts in the preferences of consumers as to where and how they shop; |
|
(7) |
social, political and economic risks to the Company’s foreign or domestic manufacturing, distribution and retail operations, including changes in foreign investment and trade policies and regulations of the host countries and of the United States; |
|
(8) |
changes in the laws, regulations and policies (including the interpretations and enforcement thereof) that affect, or will affect, the Company’s business, including those relating to its products or distribution networks, changes in accounting standards, tax laws and regulations, environmental or climate change laws, regulations or accords, trade rules and customs regulations, and the outcome and expense of legal or regulatory proceedings, and any action the Company may take as a result; |
|
(9) |
foreign currency fluctuations affecting the Company’s results of operations and the value of its foreign assets, the relative prices at which the Company and its foreign competitors sell products in the same markets and the Company’s operating and manufacturing costs outside of the United States; |
|
(10) |
changes in global or local conditions, including those due to volatility in the global credit and equity markets, natural or man-made disasters, real or perceived epidemics, supply chain challenges, inflation, or increased energy costs, that could affect consumer purchasing, the willingness or ability of consumers to travel and/or purchase the Company’s products while traveling, the financial strength of the Company’s customers, suppliers or other contract counterparties, the Company’s operations, the cost and availability of capital which the Company may need for new equipment, facilities or acquisitions, the returns that the Company is able to generate on its pension assets and the resulting impact on funding obligations, the cost and availability of raw materials and the assumptions underlying the Company’s critical accounting estimates; |
|
(11) |
impacts attributable to the COVID-19 pandemic, including disruptions to our global business; |
|
(12) |
shipment delays, commodity pricing, depletion of inventory and increased production costs resulting from disruptions of operations at any of the facilities that manufacture the Company’s products or at the Company’s distribution or inventory centers, including disruptions that may be caused by the implementation of information technology initiatives, or by restructurings; |
|
(13) |
real estate rates and availability, which may affect the Company’s ability to increase or maintain the number of retail locations at which the Company sells its products and the costs associated with the Company’s other facilities; |
|
(14) |
changes in product mix to products which are less profitable; |
|
(15) |
the Company’s ability to acquire, develop or implement new information and distribution technologies and initiatives on a timely basis and within the Company’s cost estimates and the Company’s ability to maintain continuous operations of such systems and the security of data and other information that may be stored in such systems or other systems or media; |
|
(16) |
the Company’s ability to capitalize on opportunities for improved efficiency, such as publicly-announced strategies and restructuring and cost-savings initiatives, and to integrate acquired businesses and realize value therefrom; |
|
(17) |
consequences attributable to local or international conflicts around the world, as well as from any terrorist action, retaliation and the threat of further action or retaliation; |
|
(18) |
the timing and impact of acquisitions, investments and divestitures; and |
|
(19) |
additional factors as described in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2021. |
The Company assumes no responsibility to update forward-looking statements made herein or otherwise.
The Estée Lauder Companies Inc. is one of the world’s leading manufacturers, marketers and sellers of quality skin care, makeup, fragrance and hair care products. The Company’s products are sold in approximately 150 countries and territories under brand names including: 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 family of brands, including The Ordinary and NIOD.
CONSOLIDATED STATEMENT OF EARNINGS (Unaudited) |
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|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended
|
Percentage
|
|
Nine Months Ended
|
Percentage
|
||||||||||||
($ in millions, except per share data) |
2022 |
2021 |
|
2022 |
2021 |
||||||||||||
Net sales(A) |
$ |
4,245 |
|
$ |
3,864 |
|
10 |
% |
|
$ |
14,176 |
|
$ |
12,279 |
|
15 |
% |
Cost of sales(A) |
|
994 |
|
|
939 |
|
6 |
|
|
|
3,274 |
|
|
2,848 |
|
15 |
|
Gross profit |
|
3,251 |
|
|
2,925 |
|
11 |
|
|
|
10,902 |
|
|
9,431 |
|
16 |
|
Gross margin |
|
76.6 |
% |
|
75.7 |
% |
|
|
|
|
76.9 |
% |
|
76.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses |
|
|
|
|
|
|
|
|
|||||||||
Selling, general and administrative(B) |
|
2,275 |
|
|
2,145 |
|
6 |
|
|
|
7,554 |
|
|
6,761 |
|
12 |
|
Restructuring and other charges(A) |
|
22 |
|
|
131 |
|
(83 |
) |
|
|
41 |
|
|
172 |
|
(76 |
) |
Goodwill impairment(C) |
|
— |
|
|
— |
|
100 |
|
|
|
— |
|
|
54 |
|
(100 |
) |
Impairment of other intangible and long-lived assets(C) |
|
216 |
|
|
33 |
|
100 |
+ |
|
|
216 |
|
|
60 |
|
100 |
+ |
Total operating expenses |
|
2,513 |
|
|
2,309 |
|
9 |
|
|
|
7,811 |
|
|
7,047 |
|
11 |
|
Operating expense margin |
|
59.2 |
% |
|
59.8 |
% |
|
|
|
|
55.1 |
% |
|
57.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income |
|
738 |
|
|
616 |
|
20 |
|
|
|
3,091 |
|
|
2,384 |
|
30 |
|
Operating income margin |
|
17.4 |
% |
|
15.9 |
% |
|
|
|
|
21.8 |
% |
|
19.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense |
|
41 |
|
|
43 |
|
(5 |
) |
|
|
125 |
|
|
131 |
|
(5 |
) |
Interest income and investment income, net |
|
5 |
|
|
9 |
|
(44 |
) |
|
|
19 |
|
|
40 |
|
(53 |
) |
Other components of net periodic benefit cost |
|
(1 |
) |
|
2 |
|
(100 |
+) |
|
|
(2 |
) |
|
12 |
|
(100 |
+) |
Other income |
|
— |
|
|
— |
|
— |
|
|
|
1 |
|
|
— |
|
100 |
|
Earnings before income taxes |
|
703 |
|
|
580 |
|
21 |
|
|
|
2,988 |
|
|
2,281 |
|
31 |
|
Provision for income taxes |
|
130 |
|
|
122 |
|
7 |
|
|
|
630 |
|
|
421 |
|
50 |
|
Net earnings |
|
573 |
|
|
458 |
|
25 |
|
|
|
2,358 |
|
|
1,860 |
|
27 |
|
Net earnings attributable to noncontrolling interests |
|
(3 |
) |
|
(2 |
) |
(50 |
) |
|
|
(8 |
) |
|
(8 |
) |
— |
|
Net earnings attributable to redeemable noncontrolling |
|
|
|
|
|
|
|
|
|||||||||
interest |
|
(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 common 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 common shares outstanding |
|
|
|
|
|
|
|
|
|||||||||
Basic |
|
359.2 |
|
|
363.6 |
|
|
|
|
|
360.7 |
|
|
362.9 |
|
|
|
Diluted |
|
363.6 |
|
|
369.0 |
|
|
|
|
|
365.8 |
|
|
368.1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(A)In August 2020, the Company announced a two-year restructuring program, Post-COVID Business Acceleration Program (the “PCBA Program”), designed to realign its business to address the dramatic shifts to its distribution landscape and consumer behaviors in the wake of the COVID-19 pandemic. The PCBA Program will help improve efficiency and effectiveness by rebalancing resources to growth areas of prestige beauty. It will further strengthen the Company by building upon the foundational capabilities in which the Company has invested. The PCBA Program’s main areas of focus include accelerating the shift to online with the realignment of the Company’s distribution network reflecting freestanding store and certain department store closures, with a focus on North America and Europe, the Middle East & Africa; the reduction in brick-and-mortar point of sale employees and related support staff; and the redesign of the Company’s regional branded marketing organizations, plus select opportunities in global brands and functions. This program is expected to position the Company to better execute its long-term strategy while strengthening its financial flexibility. The Company plans to approve specific initiatives under the PCBA Program through fiscal 2022 and expects to substantially complete those initiatives through fiscal 2023. The Company expects that the PCBA Program will result in related restructuring and other charges totaling between $400 million and $500 million, before taxes.
The Company substantially completed initiatives approved under the Leading Beauty Program (the “LBF Program”) through fiscal 2021. Additional information about the LBF Program is included in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021. |
|||||||||||||||||
(B)For the three and nine months ended March 31, 2022, the Company recorded $(60) million ($(48) million, less the portion attributable to redeemable noncontrolling interest and net of tax) and $(58) million ($(46) million, less the portion attributable to redeemable noncontrolling interest and net of tax), respectively, of income related to the change in fair value of acquisition-related stock options related to DECIEM. The Company recorded $2 million (gross and net of tax) of income within selling, general and administrative expenses for the nine months ended March 31, 2021 to reflect changes in the fair value of its contingent consideration related to its fiscal 2016 acquisition.
|
|||||||||||||||||
(C)During the fiscal 2022 third quarter, given the lower-than-expected results from international expansion to areas that continue to be impacted by COVID-19, the Company made revisions to the internal forecasts relating to its GLAMGLOW reporting unit. The Company concluded that the changes in circumstances in the reporting unit triggered the need for an interim impairment review of its trademark intangible asset. As of March 31, 2022, the remaining carrying value of the trademark intangible asset was not recoverable and the Company recorded an impairment charge of $11 million reducing the carrying value to zero.
During the fiscal 2022 third quarter, given the lower-than-expected growth within key geographic regions and channels for Dr.Jart+ that continue to be impacted by the spread of COVID-19 variants and resurgence in cases and the potential future impacts relating to the uncertainty of the duration and severity of COVID-19 impacting the financial performance of the brand, the lower than expected growth in key retail channels for DECIEM, and the lower than expected results from international expansion to areas that continue to be impacted by COVID-19 for Too Faced, the Company made revisions to the internal forecasts relating to its Dr. Jart+, DECIEM and Too Faced reporting units.
The Company concluded that the changes in circumstances in the reporting units triggered the need for interim impairment reviews of their trademarks and goodwill. These changes in circumstances were also an indicator that the carrying amounts of Dr.Jart+’s, DECIEM’s and Too Faced’s long-lived assets, including customer lists, may not be recoverable. Accordingly, the Company performed interim impairment tests for the trademarks and a recoverability test for the long-lived assets as of February 28, 2022. The Company concluded that the carrying amounts of the long-lived assets were recoverable. For the Dr.Jart+ reporting unit, the Company also concluded that the carrying value of the trademark intangible asset exceeded its estimated fair value, which was determined utilizing the relief-from-royalty method to determine discounted projected future cash flows, and recorded an impairment charge. For the Too Faced and DECIEM reporting units, as the carrying values of the trademarks did not exceed their estimated fair values, which were determined utilizing the relief-from-royalty method to determine discounted projected future cash flows, the Company did not record impairment charges. As of March 31, 2022, the estimated fair values of Too Faced’s and DECIEM’s trademarks exceeded their carrying values by 13% and 3%, respectively. For the Too Faced and DECIEM trademark intangible assets, if all other assumptions are held constant, an increase of 100 basis points and 50 basis points, respectively, in the weighted average cost of capital would result in an impairment charge. After adjusting the carrying values of the trademarks, the Company completed interim quantitative impairment tests for goodwill. As the estimated fair value of the Dr.Jart+, DECIEM and Too Faced reporting units were in excess of their carrying values, the Company concluded that the carrying amounts of the goodwill were recoverable and did not record a goodwill impairment charge related to these reporting units. The fair value of these reporting units were based upon an equal weighting of the income and market approaches, utilizing estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of the cash flows, as well as valuation multiples derived from comparable publicly traded companies that are applied to operating performance of the reporting units. The significant assumptions used in these approaches include revenue growth rates and profit margins, terminal values, weighted average cost of capital used to discount future cash flows and royalty rates for trademarks. The most significant unobservable input used to estimate the fair value of the Dr. Jart+ trademark intangible asset was the weighted-average cost of capital, which was 10.5%.
For the three and nine months ended March 31, 2022, other intangible asset impairment charges were $216 million ($164 million, less the portion attributable to noncontrolling interest and net of tax), with an impact of $.45 per common share in both periods.
During November 2020, given the actual and the estimate of the potential future impacts relating to the uncertainty of the duration and severity of COVID-19 impacting the Company and lower than expected results from geographic expansion, the Company made further revisions to the internal forecasts relating to its GLAMGLOW reporting unit, triggering a need for an interim impairment review. As a result of this review, the Company recorded $81 million ($63 million, net of tax) of goodwill and other intangible asset impairments, with an impact of $.18 per common share for the nine months ended March 31, 2021.
During March 2021, the Company recognized $33 million ($27 million, net of tax) of long-lived asset impairments, included in impairments of other intangible and long-lived assets, in the accompanying consolidated statements of earnings (loss) for the three and nine months ended March 31, 2021, related other assets (i.e. rights associated with commercial operating leases), operating lease ROU assets and the related property, plant and equipment in certain freestanding stores primarily in Europe due to the impact of the COVID-19 pandemic.
For the three months ended March 31, 2021, total long-lived asset impairment charges were $33 million with an impact of $.07 per common share, and for the nine months ended March 31, 2021, total goodwill, other intangible and long-lived asset impairment charges were $114 million with an impact of $.25 per common share.
|
|||||||||||||||||
Returns and Charges Associated With Restructuring and Other Activities and Other Adjustments
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended March 31, 2022 |
|||||||||||||||||||
|
Sales
|
Cost of
|
Operating Expenses |
Total |
After
|
Diluted
|
||||||||||||||
(In millions, except per share data) |
Restructuring
|
Other Charges/
|
||||||||||||||||||
Leading Beauty Forward |
$ |
— |
$ |
— |
|
$ |
(1 |
) |
$ |
5 |
|
$ |
4 |
|
$ |
3 |
|
$ |
.01 |
|
PCBA Program |
|
1 |
|
— |
|
|
17 |
|
|
1 |
|
|
19 |
|
|
14 |
|
|
.04 |
|
Change in fair value of acquisition-related stock |
||||||||||||||||||||
options |
|
— |
|
— |
|
|
— |
|
|
(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
|
Cost of
|
Operating Expenses |
Total |
After
|
Diluted
|
||||||||||||||
(In millions, except per share data) |
Restructuring
|
Other Charges/
|
||||||||||||||||||
Leading Beauty Forward |
$ |
— |
$ |
2 |
|
$ |
(2 |
) |
$ |
13 |
|
$ |
13 |
|
$ |
10 |
|
$ |
.03 |
|
PCBA Program |
|
3 |
|
(2 |
) |
|
24 |
|
|
6 |
|
|
31 |
|
|
24 |
|
|
.06 |
|
Change in fair value of acquisition-related stock |
||||||||||||||||||||
options |
|
— |
|
— |
|
|
— |
|
|
(58 |
) |
|
(58 |
) |
|
(46 |
) |
|
(.13 |
) |
Other intangible asset impairments |
|
— |
|
— |
|
|
— |
|
|
216 |
|
|
216 |
|
|
164 |
|
|
.45 |
|
Other income |
|
— |
|
— |
|
|
— |
|
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
|
— |
|
Total |
$ |
3 |
$ |
— |
|
$ |
22 |
|
$ |
176 |
|
$ |
201 |
|
$ |
151 |
|
$ |
.41 |
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended March 31, 2021 |
|||||||||||||||||||
|
Sales
|
Cost of
|
Operating Expenses |
Total |
After Tax |
Diluted
|
||||||||||||||
(In millions, except per share data) |
Restructuring
|
Other Charges/
|
||||||||||||||||||
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
|
Cost of
|
Operating Expenses |
Total |
After Tax |
Diluted
|
||||||||||||||
(In millions, except per share data) |
Restructuring
|
Other Charges/
|
||||||||||||||||||
Leading Beauty Forward |
$ |
— |
$ |
4 |
|
$ |
(7 |
) |
$ |
9 |
|
$ |
6 |
|
$ |
5 |
|
$ |
.01 |
|
PCBA Program |
|
10 |
|
5 |
|
|
167 |
|
|
3 |
|
|
185 |
|
|
144 |
|
|
.40 |
|
Changes in fair value of contingent consideration |
|
— |
|
— |
|
|
— |
|
|
(2 |
) |
|
(2 |
) |
|
(2 |
) |
|
(.01 |
) |
Goodwill, other intangible and long-lived asset |
||||||||||||||||||||
impairments |
|
— |
|
— |
|
|
— |
|
|
114 |
|
|
114 |
|
|
90 |
|
|
.25 |
|
Total |
$ |
10 |
$ |
9 |
|
$ |
160 |
|
$ |
124 |
|
$ |
303 |
|
$ |
237 |
|
$ |
.65 |
|
Results by Product Category
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
|
Nine Months Ended March 31 |
|||||||||||||||||
|
Net Sales |
Percentage Change |
Operating
|
Percentage
|
||||||||||||||
($ in millions) |
2022 |
2021 |
Reported
|
Constant
|
2022 |
2021 |
Reported
|
|||||||||||
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/charges associated with |
|
|
||||||||||||||||
restructuring and other activities and |
|
|
||||||||||||||||
adjustments |
|
(3 |
) |
|
(10 |
) |
|
|
|
(44 |
) |
|
(191 |
) |
|
|
||
Total |
$ |
14,176 |
|
$ |
12,279 |
|
15 |
% |
15 |
% |
$ |
3,091 |
|
$ |
2,384 |
|
30 |
% |
Organic Net Sales Growth - Reconciliation to GAAP
|
||||||||
|
Nine Months Ended March 31
|
|||||||
|
Organic
|
Impact of
|
Impact of
|
Net Sales
|
||||
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 associated with restructuring and other activities |
|
|
|
— |
|
|||
Total |
13 |
% |
2 |
% |
— |
% |
15 |
% |
(1)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably DECIEM and BECCA); as well as the impacts from currency. |
||||||||
Results by Geographic Region
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
|
Nine Months Ended March 31 |
|||||||||||||||||
|
Net Sales |
Percentage Change |
Operating
|
Percentage
|
||||||||||||||
($ in millions) |
2022 |
2021 |
Reported
|
Constant
|
2022 |
2021 |
Reported
|
|||||||||||
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/charges associated with restructuring |
||||||||||||||||||
and other activities and adjustments |
|
(3 |
) |
|
(10 |
) |
|
|
|
(44 |
) |
|
(191 |
) |
|
|||
Total |
$ |
14,176 |
|
$ |
12,279 |
|
15 |
% |
15 |
% |
$ |
3,091 |
|
$ |
2,384 |
|
30 |
% |
Organic Net Sales Growth - Reconciliation to GAAP
|
||||||||
|
Nine Months Ended March 31
|
|||||||
|
Organic
|
Impact of
|
Impact of
|
Net Sales
|
||||
The Americas |
19 |
% |
6 |
% |
— |
% |
25 |
% |
Europe, the Middle East & Africa |
16 |
|
2 |
|
— |
|
18 |
|
Asia/Pacific |
4 |
|
1 |
|
1 |
|
6 |
|
Subtotal |
13 |
% |
2 |
% |
— |
% |
15 |
% |
Returns associated with restructuring and other activities |
|
|
|
— |
|
|||
Total |
13 |
% |
2 |
% |
— |
% |
15 |
% |
(1)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably DECIEM and BECCA); as well as the impacts from currency. |
||||||||
This earnings release includes some non-GAAP financial measures relating to charges associated with restructuring and other activities and relating to organic net sales. Included herein are reconciliations between the non-GAAP financial measures and the most directly comparable GAAP measures for certain consolidated statements of earnings accounts before and after these items. The Company uses certain non-GAAP financial measures, among other financial measures, to evaluate its operating performance, which represent the way the Company conducts and views its business. Management believes that excluding certain items that are not comparable from period to period, or do not reflect the Company’s underlying ongoing business, provides transparency for such items and helps investors and others compare and analyze operating performance from period to period. In the future, the Company expects to incur charges or make adjustments similar in nature to those presented herein; however, the impact to the Company’s results in a given period may be highly variable and difficult to predict. Our non-GAAP financial measures may not be comparable to similarly titled measures used by, or determined in a manner consistent with, other companies. While the Company considers the non-GAAP measures useful in analyzing its results, they are not intended to replace, or act as a substitute for, any presentation included in the consolidated financial statements prepared in conformity with GAAP.
The Company operates on a global basis, with the majority of its net sales generated outside the United States. Accordingly, fluctuations in foreign currency exchange rates can affect the Company’s results of operations. Therefore, the Company presents certain net sales, operating results and diluted earnings per share information excluding the effect of foreign currency rate fluctuations to provide a framework for assessing the performance of its underlying business outside the United States. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company calculates constant currency information by translating current-period results using prior-year period monthly average foreign currency exchange rates and adjusting for the period-over-period impact of foreign currency cash flow hedging activities.
Reconciliation of Certain Consolidated Statements of Earnings Accounts
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Three Months Ended March 31 |
|
||||||||||||||||||||||||||
|
2022 |
2021 |
% Change |
|||||||||||||||||||||||||
($ in millions, except per
|
As
|
Returns/
|
Non-
|
Impact of
|
Non-
|
As
|
Returns/
|
Non-
|
Non-
|
Non-
|
||||||||||||||||||
Net sales |
$ |
4,245 |
|
$ |
1 |
|
$ |
4,246 |
|
$ |
52 |
|
$ |
4,298 |
|
$ |
3,864 |
|
$ |
10 |
|
$ |
3,874 |
|
10 |
% |
11 |
% |
Cost of sales |
|
994 |
|
|
— |
|
|
994 |
|
|
13 |
|
|
1,007 |
|
|
939 |
|
|
(4 |
) |
|
935 |
|
|
|
||
Gross profit |
|
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 expenses |
|
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 income |
|
738 |
|
|
179 |
|
|
917 |
|
|
2 |
|
|
919 |
|
|
616 |
|
|
178 |
|
|
794 |
|
15 |
% |
16 |
% |
Operating income |
||||||||||||||||||||||||||||
margin |
|
17.4 |
% |
|
|
21.6 |
% |
|
|
21.4 |
% |
|
15.9 |
% |
|
|
20.5 |
% |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other income |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
||
Provision for income |
||||||||||||||||||||||||||||
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 millions, except per
|
As
|
Returns/
|
Non-
|
Impact of
|
Non-
|
As
|
Returns/
|
Non-
|
Non-
|
Non-
|
||||||||||||||||||
Net sales |
$ |
14,176 |
|
$ |
3 |
|
$ |
14,179 |
|
$ |
(32 |
) |
$ |
14,147 |
|
$ |
12,279 |
|
$ |
10 |
|
$ |
12,289 |
|
15 |
% |
15 |
% |
Cost of sales |
|
3,274 |
|
|
— |
|
|
3,274 |
|
|
(4 |
) |
|
3,270 |
|
|
2,848 |
|
|
(9 |
) |
|
2,839 |
|
|
|
||
Gross profit |
|
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 expenses |
|
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 income |
|
3,091 |
|
|
202 |
|
|
3,293 |
|
|
(23 |
) |
|
3,270 |
|
|
2,384 |
|
|
303 |
|
|
2,687 |
|
23 |
% |
22 |
% |
Operating income |
||||||||||||||||||||||||||||
margin |
|
21.8 |
% |
|
|
23.2 |
% |
|
|
23.1 |
% |
|
19.4 |
% |
|
|
21.9 |
% |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other income |
|
1 |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
||
Provision for income |
||||||||||||||||||||||||||||
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
|
|||||||||
|
|
|
|
||||||
|
March 31,
|
June 30, 2021 |
March 31,
|
||||||
($ in millions) |
(Audited) |
||||||||
ASSETS |
|
|
|
||||||
|
|
|
|
||||||
Cash and cash equivalents |
$ |
3,836 |
$ |
4,958 |
$ |
6,399 |
|||
Accounts receivable, net |
|
2,209 |
|
1,702 |
|
1,735 |
|||
Inventory and promotional merchandise |
|
2,830 |
|
2,505 |
|
2,134 |
|||
Prepaid expenses and other current assets |
|
625 |
|
603 |
|
729 |
|||
Total current assets |
|
9,500 |
|
9,768 |
|
10,997 |
|||
Property, plant and equipment, net |
|
2,493 |
|
2,280 |
|
2,106 |
|||
Operating lease right-of-use assets |
|
2,034 |
|
2,190 |
|
2,212 |
|||
Other assets |
|
7,332 |
|
7,733 |
|
4,585 |
|||
Total assets |
$ |
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 current liabilities |
|
5,414 |
|
5,298 |
|
5,197 |
|||
Long-term debt |
|
5,188 |
|
5,537 |
|
5,487 |
|||
Long-term operating 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 interest |
|
865 |
|
857 |
|
— |
|||
Total equity |
|
6,186 |
|
6,091 |
|
5,558 |
|||
Total liabilities and equity |
$ |
21,359 |
$ |
21,971 |
$ |
19,900 |
|||
|
|
|
|
||||||
SELECT CASH FLOW DATA (Unaudited) |
||||||
|
|
|
||||
|
Nine Months Ended
|
|||||
($ in millions) |
|
2022 |
|
|
2021 |
|
Net earnings |
$ |
2,358 |
|
$ |
1,860 |
|
Adjustments to reconcile net earnings to net cash flows from operating |
||||||
activities: |
|
|
||||
Depreciation and amortization |
|
546 |
|
|
475 |
|
Deferred income taxes |
|
(90 |
) |
|
(103 |
) |
Goodwill, other intangible and long-lived asset impairments |
|
216 |
|
|
114 |
|
Other items |
|
315 |
|
|
392 |
|
Changes in operating assets and liabilities: |
|
|
||||
Increase in accounts receivable, net |
|
(548 |
) |
|
(506 |
) |
Decrease (increase) in inventory and promotional merchandise |
|
(398 |
) |
|
13 |
|
Increase in other assets, net |
|
(61 |
) |
|
(122 |
) |
Increase (decrease) in accounts payable and other liabilities, net |
|
(369 |
) |
|
654 |
|
Net cash flows provided by operating activities |
$ |
1,969 |
|
$ |
2,777 |
|
|
|
|
||||
Other Investing and Financing Sources (Uses): |
|
|
||||
Capital expenditures |
$ |
(658 |
) |
$ |
(386 |
) |
Settlement of net investment hedges |
|
108 |
|
|
(175 |
) |
Payments to acquire treasury stock |
|
(1,998 |
) |
|
(316 |
) |
Dividends paid |
|
(624 |
) |
|
(561 |
) |
Proceeds (repayments) of current debt, net |
|
(4 |
) |
|
(746 |
) |
Proceeds from issuance of long-term debt, net |
|
— |
|
|
596 |
|
Чистые продажи выросли на 10%, а Разводненная прибыль на акцию Увеличилась на 24% до 1,53 доллара США
Чистые Органические Продажи1 Выросли на 9%, а Скорректированная Разводненная прибыль на акцию Выросла на 18% в Постоянной валюте
Западные рынки и Кирпич и строительный раствор Превзошли
НЬЮ-ЙОРК -- (BUSINESS WIRE) -- The Estée Lauder Companies Inc. (NYSE: EL) сегодня сообщила о чистых продажах в размере 4,25 миллиарда долларов за третий квартал, закончившийся 31 марта 2022 года, что на 10% больше, чем 3,86 миллиарда долларов за аналогичный период прошлого года. Чистые органические продажи выросли на 9%. Чистые продажи выросли во всех категориях товаров, что в значительной степени отражает продолжающееся восстановление в обычных розничных магазинах, чему способствовал двузначный рост в Северной и Южной Америке и Европе, на Ближнем Востоке и в Африке (“EMEA”), а также рост глобального онлайна2. Компания добилась значительного роста продаж в условиях усиления ограничений, связанных с COVID, в Китае, начиная с середины марта 2022 года. Эти временные ограничения привели к сокращению потребительского трафика и поездок, а также ограничили возможности Компании по отправке заказов из своих распределительных центров.
Компания сообщила о чистой доходности3 в размере 0,56 миллиарда долларов по сравнению с чистой доходностью3 в размере 0,46 миллиарда долларов в предыдущем году. Разводненная чистая прибыль на одну обыкновенную акцию составила 1,53 доллара США по сравнению с 1,24 доллара США, о которых сообщалось в предыдущем году. Без учета реструктуризации и других расходов и корректировок, как подробно описано на странице 3, скорректированная разводненная прибыль на одну обыкновенную акцию составила 1,90 доллара США, что на 18% больше в постоянной валюте.
Фабрицио Фреда, президент и главный исполнительный директор, сказал: “Мы добились значительного роста продаж и более высокой, чем ожидалось, прибыльности в третьем квартале 2022 финансового года, несмотря на усиление встречных ветров по мере развития квартала, включая ограничения на COVID в Азиатско-Тихоокеанском регионе. Каждая категория развивалась органично, чему способствовали выдающиеся результаты Fragrance во всем мире и ренессанс косметики на западных рынках. Одиннадцать брендов способствовали двузначному органическому росту продаж и еще больше продемонстрировали нашу диверсификацию, подкрепленную нашей стратегией множественных двигателей роста. Потребительский спрос оставался устойчивым даже в этой более инфляционной среде.
| ________________ | |
1 |
Organic net sales represents net sales excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures; as well as the impacts from currency. We believe the Non-GAAP measure of organic net sales growth provides year-over-year sales comparisons on a consistent basis. See page 2 for reconciliations to GAAP. |
2 |
Online sales discussed throughout includes sales of our products from our websites and third-party platforms, as well as estimated sales of our products sold through our retailers’ websites. |
3 |
Net earnings attributable to The Estée Lauder Companies Inc. which excludes net (earnings) attributable to noncontrolling interests, as well as redeemable noncontrolling interest beginning in the fourth quarter of fiscal 2021. |
“Регионы Северной и Южной Америки и региона EMEA превзошли наш общий рост продаж. Мы извлекли выгоду из повторного открытия, чтобы обеспечить двузначный органический рост продаж, используя наши высококачественные услуги, прорывные инновации и желанные франшизы hero. В Азиатско-Тихоокеанском регионе несколько рынков процветали, во главе с Японией, в то время как на наши результаты в Китае оказали давление ограничения, связанные с COVID ”.
Фреда заключила: “Учитывая наши выдающиеся показатели с начала года, мы ожидаем, что в 2022 финансовом году будет достигнут рекордный год, несмотря на временные трудности, вызванные COVID, которые снизили наш прогноз на четвертый квартал. Мы уверены, что наш бизнес в Китае восстановится, когда COVID утихнет, и ускорит наш темп”.
Бизнес-обновление по COVID-19 Пандемия COVID-19 продолжала нарушать операционную среду Компании во всем мире, в первую очередь влияя на розничный трафик, поездки, цепочки поставок, уровень запасов и другую логистику в третьем квартале 2022 финансового года. Возобновление случаев заболевания COVID-19 во многих китайских провинциях привело к введению ограничений в конце третьего квартала 2022 финансового года, чтобы предотвратить дальнейшее распространение вируса. Следовательно, розничные перевозки, поездки и возможности дистрибуции были временно ограничены. Дистрибьюторские центры Компании в Шанхае работали с ограниченными возможностями для выполнения обычных и онлайн-заказов, начиная с середины марта 2022 года.
Результаты третьего квартала 2022 финансового года Органический чистый рост продаж представляет собой чистый рост продаж без учета доходов, связанных с реструктуризацией и другими видами деятельности; несопоставимые последствия приобретений, распродаж и закрытия брендов (в частности, приобретение контрольного пакета акций DECIEM и закрытие BECCA); а также влияние валютных курсов. Комментарии к категориям и регионам отражают органическую производительность.
Reconciliation between GAAP and Non-GAAP Net Sales Growth
|
||
|
|
|
|
Three Months Ended
|
|
As Reported - GAAP(1) |
10 |
% |
|
|
|
Organic, Non-GAAP(2) |
9 |
% |
Impact of acquisitions, divestitures and brand closures, net |
2 |
|
Impact of foreign currency |
(1 |
) |
Returns associated with restructuring and other activities |
— |
|
As Reported - GAAP(1) |
10 |
% |
(1)Includes returns associated with restructuring and other activities |
||
(2)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably DECIEM and BECCA); as well as the impacts from currency. |
||
Скорректированная разводненная прибыль на одну обыкновенную акцию исключает реструктуризацию и другие расходы и корректировки, как подробно описано в следующей таблице.
Reconciliation between GAAP and Non-GAAP - Diluted Earnings Per Share (“EPS”)
|
|||||||
|
|
|
|
||||
|
Three Months Ended |
||||||
|
March 31 |
|
|||||
|
|
2022 |
|
|
2021 |
Growth |
|
As Reported EPS - GAAP(1) |
$ |
1.53 |
|
$ |
1.24 |
24 |
% |
|
|
|
|
||||
Non-GAAP |
|
|
|
||||
Restructuring and other charges |
|
.05 |
|
|
.31 |
|
|
Changes in fair value of contingent consideration |
|
— |
|
|
— |
|
|
Change in fair value of acquisition-related stock options (less the portion attributable to |
|||||||
redeemable noncontrolling interest) |
|
(.13 |
) |
|
— |
|
|
Other intangible and long-lived asset impairments |
|
.45 |
|
|
.07 |
|
|
Adjusted EPS - Non-GAAP |
$ |
1.90 |
|
$ |
1.62 |
17 |
% |
Impact of foreign currency on earnings per share |
|
.01 |
|
|
|
||
Adjusted Constant Currency EPS - Non-GAAP |
$ |
1.91 |
|
$ |
1.62 |
18 |
% |
(1)Includes restructuring and other charges and adjustments |
|
|
|||||
На чистые продажи в товарных категориях и регионах Компании за пределами Соединенных Штатов неблагоприятно повлияло укрепление доллара США по отношению к большинству валют. На операционную прибыль благоприятно повлиял более сильный доллар США.
Общий отчетный операционный доход составил 0,74 миллиарда долларов, что на 20% больше, чем 0,62 миллиарда долларов за аналогичный период прошлого года. Скорректированный операционный доход в постоянной валюте увеличился на 16%, в основном за счет увеличения чистых продаж и без учета следующих статей:
Results by Product Category
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended March 31 |
|||||||||||||||||
|
Net Sales |
Percentage Change |
Operating
|
Percentage
|
||||||||||||||
($ in millions) |
2022 |
2021 |
Reported
|
Constant
|
2022 |
2021 |
Reported
|
|||||||||||
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/charges associated with |
||||||||||||||||||
restructuring and other activities and |
||||||||||||||||||
adjustments |
|
(1 |
) |
|
(10 |
) |
|
|
|
(23 |
) |
|
(145 |
) |
|
|||
Total |
$ |
4,245 |
|
$ |
3,864 |
|
10 |
% |
11 |
% |
$ |
738 |
|
$ |
616 |
|
20 |
% |
Organic Net Sales Growth - Reconciliation to GAAP
|
||||||||
|
Three Months Ended March 31
|
|||||||
|
Organic
|
Impact of
|
Impact of
|
Net Sales
|
||||
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 associated with restructuring and other activities |
|
|
|
— |
|
|||
Total |
9 |
% |
2 |
% |
(1 |
)% |
10 |
% |
(1)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably DECIEM and BECCA); as well as the impacts from currency. |
||||||||
Results by Geographic Region
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
|
Three Months Ended March 31 |
|||||||||||||||||
|
Net Sales |
Percentage Change |
Operating
|
Percentage
|
||||||||||||||
($ in millions) |
2022 |
2021 |
Reported
|
Constant
|
2022 |
2021 |
Reported
|
|||||||||||
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/charges associated with restructuring and |
||||||||||||||||||
other activities and adjustments |
|
(1 |
) |
|
(10 |
) |
|
|
|
(23 |
) |
|
(145 |
) |
|
|||
Total |
$ |
4,245 |
|
$ |
3,864 |
|
10 |
% |
11 |
% |
$ |
738 |
|
$ |
616 |
|
20 |
% |
Organic Net Sales Growth - Reconciliation to GAAP
|
||||||||
|
Three Months Ended March 31
|
|||||||
|
Organic
|
Impact of
|
Impact of
|
Net Sales
|
||||
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 associated with restructuring and other activities |
|
|
|
— |
|
|||
Total |
9 |
% |
2 |
% |
(1 |
)% |
10 |
% |
(1)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably DECIEM and BECCA); as well as the impacts from currency. |
||||||||
Европа, Ближний Восток и Африка
Результаты за девять месяцев
| ________________ | |
4 |
Net earnings attributable to The Estée Lauder Companies Inc. which excludes net (earnings) attributable to noncontrolling interests, as well as redeemable noncontrolling interest beginning in the fourth quarter of fiscal 2021. |
Прогноз Компания пересматривает свой прогноз на весь финансовый год, отражая как выдающиеся показатели с начала года, так и дополнительные препятствия, которые влияют на четвертый квартал 2022 финансового года, включая ограничения, связанные с COVID в Китае, которые также влияют на ее розничный бизнес в сфере путешествий, а также влияние вторжения в Украину.
Обладая множеством двигателей роста в разных регионах, брендах, категориях продуктов и каналах, Компания имеет хорошие возможности для продолжения постепенного ускорения по мере ослабления COVID и поддержки динамики рынка. Компания планирует инвестировать в области поддержки ускорения, включая рекламу, онлайн, исследования и разработки и цепочки поставок, чтобы стимулировать рост в областях возможностей и способствовать развитию новых тенденций в остальной части бизнеса.
Прогноз на весь год отражает следующие допущения:
Компания осознает текущие риски, связанные с пандемией COVID-19, а также риски, связанные с социальными, экономическими и политическими вопросами, включая реструктуризацию и банкротства в розничной торговле, геополитическую напряженность, изменения в регулировании, проблемы глобальной безопасности, волатильность валютных курсов, общие экономические проблемы, включая растущее инфляционное давление и цепочку поставок сбои и изменения в потребительских предпочтениях, которые влияют на потребительские расходы в определенных странах, каналах и туристических коридорах.
В долгосрочной перспективе Компания ожидает вернуться к своим целевым показателям роста в размере 6-8% роста продаж, увеличения операционной маржи на 50 базисных пунктов и двузначного скорректированного роста разводненной прибыли на акцию в постоянной валюте после периода нормализации по мере ослабления последствий пандемии COVID-19.
Полный 2022 финансовый год
Прогноз прибыли на акцию
Reconciliation between GAAP and Non-GAAP - Net Sales Growth
|
||
|
|
|
|
Twelve Months Ending |
|
|
June 30, 2022(F) |
|
As Reported - GAAP(1) |
7% - 9 |
% |
|
|
|
Organic, Non-GAAP(2) |
5% - 7 |
% |
Impact of acquisitions, divestitures and brand closures, net |
2 |
|
Impact of foreign currency |
— |
|
Returns associated with restructuring and other activities |
— |
|
As Reported - GAAP(1) |
7% - 9 |
% |
(1)Includes returns associated with restructuring and other activities |
||
(2)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of already announced acquisitions, divestitures and brand closures; as well as the impacts from currency. |
||
(F)Represents forecast |
||
Reconciliation between GAAP and Non-GAAP - Diluted Earnings Per Share (“EPS”)
|
|||||||
|
|
|
|
||||
|
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 other charges |
.12 - .18 |
|
.48 |
|
|
|
|
Changes in fair value of contingent consideration |
— |
|
|
(.01 |
) |
|
|
Change in fair value of acquisition-related stock options (less the portion attributable to |
|
|
|
||||
redeemable noncontrolling interest) |
(.12 |
) |
|
.09 |
|
|
|
Goodwill, other intangible and long-lived asset impairments |
.45 |
|
|
.40 |
|
|
|
Other income |
— |
|
|
(2.30 |
) |
|
|
Forecasted/Adjusted EPS - Non-GAAP |
$7.05 - $7.15 |
$ |
6.45 |
|
9% - 11 |
% |
|
Impact of foreign currency |
(.05 |
) |
|
|
|
||
Forecasted Adjusted Constant Currency EPS - Non-GAAP |
$7.00 - $7.10 |
$ |
6.45 |
|
8% - 10 |
% |
|
(1)Includes restructuring and other charges and adjustments |
|||||||
(F)Represents forecast |
|||||||
Конференц-связь The Estée Lauder Companies проведет конференц-связь в 9:30 утра (по восточному времени) сегодня, 3 мая 2022 года, для обсуждения ее результатов. Телефонный номер для вызова: 888-294-4716 в США или 706-902-01-01 на международном уровне (идентификационный номер конференции: 9349743). Звонок также будет транслироваться в прямом эфире по адресу http://www.elcompanies.com/investors/events-and-presentations .
Предостережение В Отношении Прогнозных Заявлений Заявления в этом пресс-релизе, в частности в “Прогнозе”, а также замечания генерального директора и других членов руководства могут представлять собой прогнозные заявления по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года. Такие заявления могут касаться наших ожиданий в отношении продаж, прибыли или других будущих финансовых показателей и ликвидности, других показателей эффективности, внедрения продуктов, выхода в новые географические регионы, инициатив в области информационных технологий, новых методов продаж, нашей долгосрочной стратегии, реструктуризации и других расходов и, как следствие, экономии средств, а также будущих операций или операционной результаты. Эти утверждения могут содержать такие слова, как “ожидать”, “будет”, “вероятно, приведет”, “будет”, “полагать”, “оценивать”, “планируется”, “планирует”, “намеревается”, “может”, “должен”, “может”, “предвидеть”, “оценка”, “проект”, “прогнозируемый”, “прогнозируемый” и “прогнозируемый” или аналогичные выражения.
Факторы, которые могут привести к тому, что фактические результаты будут существенно отличаться от наших прогнозных заявлений, включают следующее:
(1) |
increased competitive activity from companies in the skin care, makeup, fragrance and hair care businesses; |
|
(2) |
the Company’s ability to develop, produce and market new products on which future operating results may depend and to successfully address challenges in the Company’s business; |
|
(3) |
consolidations, restructurings, bankruptcies and reorganizations in the retail industry causing a decrease in the number of stores that sell the Company’s products, an increase in the ownership concentration within the retail industry, ownership of retailers by the Company’s competitors or ownership of competitors by the Company’s customers that are retailers and our inability to collect receivables; |
|
(4) |
destocking and tighter working capital management by retailers; |
|
(5) |
the success, or changes in timing or scope, of new product launches and the success, or changes in timing or scope, of advertising, sampling and merchandising programs; |
|
(6) |
shifts in the preferences of consumers as to where and how they shop; |
|
(7) |
social, political and economic risks to the Company’s foreign or domestic manufacturing, distribution and retail operations, including changes in foreign investment and trade policies and regulations of the host countries and of the United States; |
|
(8) |
changes in the laws, regulations and policies (including the interpretations and enforcement thereof) that affect, or will affect, the Company’s business, including those relating to its products or distribution networks, changes in accounting standards, tax laws and regulations, environmental or climate change laws, regulations or accords, trade rules and customs regulations, and the outcome and expense of legal or regulatory proceedings, and any action the Company may take as a result; |
|
(9) |
foreign currency fluctuations affecting the Company’s results of operations and the value of its foreign assets, the relative prices at which the Company and its foreign competitors sell products in the same markets and the Company’s operating and manufacturing costs outside of the United States; |
|
(10) |
changes in global or local conditions, including those due to volatility in the global credit and equity markets, natural or man-made disasters, real or perceived epidemics, supply chain challenges, inflation, or increased energy costs, that could affect consumer purchasing, the willingness or ability of consumers to travel and/or purchase the Company’s products while traveling, the financial strength of the Company’s customers, suppliers or other contract counterparties, the Company’s operations, the cost and availability of capital which the Company may need for new equipment, facilities or acquisitions, the returns that the Company is able to generate on its pension assets and the resulting impact on funding obligations, the cost and availability of raw materials and the assumptions underlying the Company’s critical accounting estimates; |
|
(11) |
impacts attributable to the COVID-19 pandemic, including disruptions to our global business; |
|
(12) |
shipment delays, commodity pricing, depletion of inventory and increased production costs resulting from disruptions of operations at any of the facilities that manufacture the Company’s products or at the Company’s distribution or inventory centers, including disruptions that may be caused by the implementation of information technology initiatives, or by restructurings; |
|
(13) |
real estate rates and availability, which may affect the Company’s ability to increase or maintain the number of retail locations at which the Company sells its products and the costs associated with the Company’s other facilities; |
|
(14) |
changes in product mix to products which are less profitable; |
|
(15) |
the Company’s ability to acquire, develop or implement new information and distribution technologies and initiatives on a timely basis and within the Company’s cost estimates and the Company’s ability to maintain continuous operations of such systems and the security of data and other information that may be stored in such systems or other systems or media; |
|
(16) |
the Company’s ability to capitalize on opportunities for improved efficiency, such as publicly-announced strategies and restructuring and cost-savings initiatives, and to integrate acquired businesses and realize value therefrom; |
|
(17) |
consequences attributable to local or international conflicts around the world, as well as from any terrorist action, retaliation and the threat of further action or retaliation; |
|
(18) |
the timing and impact of acquisitions, investments and divestitures; and |
|
(19) |
additional factors as described in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2021. |
Компания не несет ответственности за обновление прогнозных заявлений, сделанных здесь или иным образом.
The Estée Lauder Companies Inc. является одним из ведущих мировых производителей, маркетологов и продавцов качественных средств по уходу за кожей, косметикой, парфюмерией и средствами по уходу за волосами. Продукция компании продается примерно в 150 странах и территориях под торговыми марками, включая: 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 и bumble, Michael Kors, Darphin Paris, TOM FORD BEAUTY, Smashbox, Ermenegildo Zegna, AERIN, Le Labo, Парфюмерные издания Фредерика Малля, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+ и семейство брендов DECIEM, включая The Ordinary и NIOD.
CONSOLIDATED STATEMENT OF EARNINGS (Unaudited) |
|||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended
|
Percentage
|
|
Nine Months Ended
|
Percentage
|
||||||||||||
($ in millions, except per share data) |
2022 |
2021 |
|
2022 |
2021 |
||||||||||||
Net sales(A) |
$ |
4,245 |
|
$ |
3,864 |
|
10 |
% |
|
$ |
14,176 |
|
$ |
12,279 |
|
15 |
% |
Cost of sales(A) |
|
994 |
|
|
939 |
|
6 |
|
|
|
3,274 |
|
|
2,848 |
|
15 |
|
Gross profit |
|
3,251 |
|
|
2,925 |
|
11 |
|
|
|
10,902 |
|
|
9,431 |
|
16 |
|
Gross margin |
|
76.6 |
% |
|
75.7 |
% |
|
|
|
|
76.9 |
% |
|
76.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating expenses |
|
|
|
|
|
|
|
|
|||||||||
Selling, general and administrative(B) |
|
2,275 |
|
|
2,145 |
|
6 |
|
|
|
7,554 |
|
|
6,761 |
|
12 |
|
Restructuring and other charges(A) |
|
22 |
|
|
131 |
|
(83 |
) |
|
|
41 |
|
|
172 |
|
(76 |
) |
Goodwill impairment(C) |
|
— |
|
|
— |
|
100 |
|
|
|
— |
|
|
54 |
|
(100 |
) |
Impairment of other intangible and long-lived assets(C) |
|
216 |
|
|
33 |
|
100 |
+ |
|
|
216 |
|
|
60 |
|
100 |
+ |
Total operating expenses |
|
2,513 |
|
|
2,309 |
|
9 |
|
|
|
7,811 |
|
|
7,047 |
|
11 |
|
Operating expense margin |
|
59.2 |
% |
|
59.8 |
% |
|
|
|
|
55.1 |
% |
|
57.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operating income |
|
738 |
|
|
616 |
|
20 |
|
|
|
3,091 |
|
|
2,384 |
|
30 |
|
Operating income margin |
|
17.4 |
% |
|
15.9 |
% |
|
|
|
|
21.8 |
% |
|
19.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest expense |
|
41 |
|
|
43 |
|
(5 |
) |
|
|
125 |
|
|
131 |
|
(5 |
) |
Interest income and investment income, net |
|
5 |
|
|
9 |
|
(44 |
) |
|
|
19 |
|
|
40 |
|
(53 |
) |
Other components of net periodic benefit cost |
|
(1 |
) |
|
2 |
|
(100 |
+) |
|
|
(2 |
) |
|
12 |
|
(100 |
+) |
Other income |
|
— |
|
|
— |
|
— |
|
|
|
1 |
|
|
— |
|
100 |
|
Earnings before income taxes |
|
703 |
|
|
580 |
|
21 |
|
|
|
2,988 |
|
|
2,281 |
|
31 |
|
Provision for income taxes |
|
130 |
|
|
122 |
|
7 |
|
|
|
630 |
|
|
421 |
|
50 |
|
Net earnings |
|
573 |
|
|
458 |
|
25 |
|
|
|
2,358 |
|
|
1,860 |
|
27 |
|
Net earnings attributable to noncontrolling interests |
|
(3 |
) |
|
(2 |
) |
(50 |
) |
|
|
(8 |
) |
|
(8 |
) |
— |
|
Net earnings attributable to redeemable noncontrolling |
|
|
|
|
|
|
|
|
|||||||||
interest |
|
(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 common 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 common shares outstanding |
|
|
|
|
|
|
|
|
|||||||||
Basic |
|
359.2 |
|
|
363.6 |
|
|
|
|
|
360.7 |
|
|
362.9 |
|
|
|
Diluted |
|
363.6 |
|
|
369.0 |
|
|
|
|
|
365.8 |
|
|
368.1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(A)In August 2020, the Company announced a two-year restructuring program, Post-COVID Business Acceleration Program (the “PCBA Program”), designed to realign its business to address the dramatic shifts to its distribution landscape and consumer behaviors in the wake of the COVID-19 pandemic. The PCBA Program will help improve efficiency and effectiveness by rebalancing resources to growth areas of prestige beauty. It will further strengthen the Company by building upon the foundational capabilities in which the Company has invested. The PCBA Program’s main areas of focus include accelerating the shift to online with the realignment of the Company’s distribution network reflecting freestanding store and certain department store closures, with a focus on North America and Europe, the Middle East & Africa; the reduction in brick-and-mortar point of sale employees and related support staff; and the redesign of the Company’s regional branded marketing organizations, plus select opportunities in global brands and functions. This program is expected to position the Company to better execute its long-term strategy while strengthening its financial flexibility. The Company plans to approve specific initiatives under the PCBA Program through fiscal 2022 and expects to substantially complete those initiatives through fiscal 2023. The Company expects that the PCBA Program will result in related restructuring and other charges totaling between $400 million and $500 million, before taxes.
The Company substantially completed initiatives approved under the Leading Beauty Program (the “LBF Program”) through fiscal 2021. Additional information about the LBF Program is included in the notes to consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021. |
|||||||||||||||||
(B)For the three and nine months ended March 31, 2022, the Company recorded $(60) million ($(48) million, less the portion attributable to redeemable noncontrolling interest and net of tax) and $(58) million ($(46) million, less the portion attributable to redeemable noncontrolling interest and net of tax), respectively, of income related to the change in fair value of acquisition-related stock options related to DECIEM. The Company recorded $2 million (gross and net of tax) of income within selling, general and administrative expenses for the nine months ended March 31, 2021 to reflect changes in the fair value of its contingent consideration related to its fiscal 2016 acquisition.
|
|||||||||||||||||
(C)During the fiscal 2022 third quarter, given the lower-than-expected results from international expansion to areas that continue to be impacted by COVID-19, the Company made revisions to the internal forecasts relating to its GLAMGLOW reporting unit. The Company concluded that the changes in circumstances in the reporting unit triggered the need for an interim impairment review of its trademark intangible asset. As of March 31, 2022, the remaining carrying value of the trademark intangible asset was not recoverable and the Company recorded an impairment charge of $11 million reducing the carrying value to zero.
During the fiscal 2022 third quarter, given the lower-than-expected growth within key geographic regions and channels for Dr.Jart+ that continue to be impacted by the spread of COVID-19 variants and resurgence in cases and the potential future impacts relating to the uncertainty of the duration and severity of COVID-19 impacting the financial performance of the brand, the lower than expected growth in key retail channels for DECIEM, and the lower than expected results from international expansion to areas that continue to be impacted by COVID-19 for Too Faced, the Company made revisions to the internal forecasts relating to its Dr. Jart+, DECIEM and Too Faced reporting units.
The Company concluded that the changes in circumstances in the reporting units triggered the need for interim impairment reviews of their trademarks and goodwill. These changes in circumstances were also an indicator that the carrying amounts of Dr.Jart+’s, DECIEM’s and Too Faced’s long-lived assets, including customer lists, may not be recoverable. Accordingly, the Company performed interim impairment tests for the trademarks and a recoverability test for the long-lived assets as of February 28, 2022. The Company concluded that the carrying amounts of the long-lived assets were recoverable. For the Dr.Jart+ reporting unit, the Company also concluded that the carrying value of the trademark intangible asset exceeded its estimated fair value, which was determined utilizing the relief-from-royalty method to determine discounted projected future cash flows, and recorded an impairment charge. For the Too Faced and DECIEM reporting units, as the carrying values of the trademarks did not exceed their estimated fair values, which were determined utilizing the relief-from-royalty method to determine discounted projected future cash flows, the Company did not record impairment charges. As of March 31, 2022, the estimated fair values of Too Faced’s and DECIEM’s trademarks exceeded their carrying values by 13% and 3%, respectively. For the Too Faced and DECIEM trademark intangible assets, if all other assumptions are held constant, an increase of 100 basis points and 50 basis points, respectively, in the weighted average cost of capital would result in an impairment charge. After adjusting the carrying values of the trademarks, the Company completed interim quantitative impairment tests for goodwill. As the estimated fair value of the Dr.Jart+, DECIEM and Too Faced reporting units were in excess of their carrying values, the Company concluded that the carrying amounts of the goodwill were recoverable and did not record a goodwill impairment charge related to these reporting units. The fair value of these reporting units were based upon an equal weighting of the income and market approaches, utilizing estimated cash flows and a terminal value, discounted at a rate of return that reflects the relative risk of the cash flows, as well as valuation multiples derived from comparable publicly traded companies that are applied to operating performance of the reporting units. The significant assumptions used in these approaches include revenue growth rates and profit margins, terminal values, weighted average cost of capital used to discount future cash flows and royalty rates for trademarks. The most significant unobservable input used to estimate the fair value of the Dr. Jart+ trademark intangible asset was the weighted-average cost of capital, which was 10.5%.
For the three and nine months ended March 31, 2022, other intangible asset impairment charges were $216 million ($164 million, less the portion attributable to noncontrolling interest and net of tax), with an impact of $.45 per common share in both periods.
During November 2020, given the actual and the estimate of the potential future impacts relating to the uncertainty of the duration and severity of COVID-19 impacting the Company and lower than expected results from geographic expansion, the Company made further revisions to the internal forecasts relating to its GLAMGLOW reporting unit, triggering a need for an interim impairment review. As a result of this review, the Company recorded $81 million ($63 million, net of tax) of goodwill and other intangible asset impairments, with an impact of $.18 per common share for the nine months ended March 31, 2021.
During March 2021, the Company recognized $33 million ($27 million, net of tax) of long-lived asset impairments, included in impairments of other intangible and long-lived assets, in the accompanying consolidated statements of earnings (loss) for the three and nine months ended March 31, 2021, related other assets (i.e. rights associated with commercial operating leases), operating lease ROU assets and the related property, plant and equipment in certain freestanding stores primarily in Europe due to the impact of the COVID-19 pandemic.
For the three months ended March 31, 2021, total long-lived asset impairment charges were $33 million with an impact of $.07 per common share, and for the nine months ended March 31, 2021, total goodwill, other intangible and long-lived asset impairment charges were $114 million with an impact of $.25 per common share.
|
|||||||||||||||||
Returns and Charges Associated With Restructuring and Other Activities and Other Adjustments
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended March 31, 2022 |
|||||||||||||||||||
|
Sales
|
Cost of
|
Operating Expenses |
Total |
After
|
Diluted
|
||||||||||||||
(In millions, except per share data) |
Restructuring
|
Other Charges/
|
||||||||||||||||||
Leading Beauty Forward |
$ |
— |
$ |
— |
|
$ |
(1 |
) |
$ |
5 |
|
$ |
4 |
|
$ |
3 |
|
$ |
.01 |
|
PCBA Program |
|
1 |
|
— |
|
|
17 |
|
|
1 |
|
|
19 |
|
|
14 |
|
|
.04 |
|
Change in fair value of acquisition-related stock |
||||||||||||||||||||
options |
|
— |
|
— |
|
|
— |
|
|
(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
|
Cost of
|
Operating Expenses |
Total |
After
|
Diluted
|
||||||||||||||
(In millions, except per share data) |
Restructuring
|
Other Charges/
|
||||||||||||||||||
Leading Beauty Forward |
$ |
— |
$ |
2 |
|
$ |
(2 |
) |
$ |
13 |
|
$ |
13 |
|
$ |
10 |
|
$ |
.03 |
|
PCBA Program |
|
3 |
|
(2 |
) |
|
24 |
|
|
6 |
|
|
31 |
|
|
24 |
|
|
.06 |
|
Change in fair value of acquisition-related stock |
||||||||||||||||||||
options |
|
— |
|
— |
|
|
— |
|
|
(58 |
) |
|
(58 |
) |
|
(46 |
) |
|
(.13 |
) |
Other intangible asset impairments |
|
— |
|
— |
|
|
— |
|
|
216 |
|
|
216 |
|
|
164 |
|
|
.45 |
|
Other income |
|
— |
|
— |
|
|
— |
|
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
|
— |
|
Total |
$ |
3 |
$ |
— |
|
$ |
22 |
|
$ |
176 |
|
$ |
201 |
|
$ |
151 |
|
$ |
.41 |
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Three Months Ended March 31, 2021 |
|||||||||||||||||||
|
Sales
|
Cost of
|
Operating Expenses |
Total |
After Tax |
Diluted
|
||||||||||||||
(In millions, except per share data) |
Restructuring
|
Other Charges/
|
||||||||||||||||||
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
|
Cost of
|
Operating Expenses |
Total |
After Tax |
Diluted
|
||||||||||||||
(In millions, except per share data) |
Restructuring
|
Other Charges/
|
||||||||||||||||||
Leading Beauty Forward |
$ |
— |
$ |
4 |
|
$ |
(7 |
) |
$ |
9 |
|
$ |
6 |
|
$ |
5 |
|
$ |
.01 |
|
PCBA Program |
|
10 |
|
5 |
|
|
167 |
|
|
3 |
|
|
185 |
|
|
144 |
|
|
.40 |
|
Changes in fair value of contingent consideration |
|
— |
|
— |
|
|
— |
|
|
(2 |
) |
|
(2 |
) |
|
(2 |
) |
|
(.01 |
) |
Goodwill, other intangible and long-lived asset |
||||||||||||||||||||
impairments |
|
— |
|
— |
|
|
— |
|
|
114 |
|
|
114 |
|
|
90 |
|
|
.25 |
|
Total |
$ |
10 |
$ |
9 |
|
$ |
160 |
|
$ |
124 |
|
$ |
303 |
|
$ |
237 |
|
$ |
.65 |
|
Results by Product Category
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
|
Nine Months Ended March 31 |
|||||||||||||||||
|
Net Sales |
Percentage Change |
Operating
|
Percentage
|
||||||||||||||
($ in millions) |
2022 |
2021 |
Reported
|
Constant
|
2022 |
2021 |
Reported
|
|||||||||||
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/charges associated with |
|
|
||||||||||||||||
restructuring and other activities and |
|
|
||||||||||||||||
adjustments |
|
(3 |
) |
|
(10 |
) |
|
|
|
(44 |
) |
|
(191 |
) |
|
|
||
Total |
$ |
14,176 |
|
$ |
12,279 |
|
15 |
% |
15 |
% |
$ |
3,091 |
|
$ |
2,384 |
|
30 |
% |
Organic Net Sales Growth - Reconciliation to GAAP
|
||||||||
|
Nine Months Ended March 31
|
|||||||
|
Organic
|
Impact of
|
Impact of
|
Net Sales
|
||||
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 associated with restructuring and other activities |
|
|
|
— |
|
|||
Total |
13 |
% |
2 |
% |
— |
% |
15 |
% |
(1)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably DECIEM and BECCA); as well as the impacts from currency. |
||||||||
Results by Geographic Region
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
|
Nine Months Ended March 31 |
|||||||||||||||||
|
Net Sales |
Percentage Change |
Operating
|
Percentage
|
||||||||||||||
($ in millions) |
2022 |
2021 |
Reported
|
Constant
|
2022 |
2021 |
Reported
|
|||||||||||
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/charges associated with restructuring |
||||||||||||||||||
and other activities and adjustments |
|
(3 |
) |
|
(10 |
) |
|
|
|
(44 |
) |
|
(191 |
) |
|
|||
Total |
$ |
14,176 |
|
$ |
12,279 |
|
15 |
% |
15 |
% |
$ |
3,091 |
|
$ |
2,384 |
|
30 |
% |
Organic Net Sales Growth - Reconciliation to GAAP
|
||||||||
|
Nine Months Ended March 31
|
|||||||
|
Organic
|
Impact of
|
Impact of
|
Net Sales
|
||||
The Americas |
19 |
% |
6 |
% |
— |
% |
25 |
% |
Europe, the Middle East & Africa |
16 |
|
2 |
|
— |
|
18 |
|
Asia/Pacific |
4 |
|
1 |
|
1 |
|
6 |
|
Subtotal |
13 |
% |
2 |
% |
— |
% |
15 |
% |
Returns associated with restructuring and other activities |
|
|
|
— |
|
|||
Total |
13 |
% |
2 |
% |
— |
% |
15 |
% |
(1)Organic net sales growth represents net sales growth excluding returns associated with restructuring and other activities; non-comparable impacts of acquisitions, divestitures and brand closures (notably DECIEM and BECCA); as well as the impacts from currency. |
||||||||
Этот отчет о доходах включает некоторые финансовые показатели, не относящиеся к GAAP, касающиеся расходов, связанных с реструктуризацией и другими видами деятельности, а также связанных с органическими чистыми продажами. В настоящий документ включены сверки между финансовыми показателями, не относящимися к GAAP, и наиболее непосредственно сопоставимыми показателями GAAP для определенных консолидированных отчетов о прибылях и убытках до и после этих статей. Компания использует определенные финансовые показатели, не относящиеся к GAAP, среди прочих финансовых показателей, для оценки своих операционных показателей, которые отражают то, как Компания ведет и рассматривает свой бизнес. Руководство считает, что исключение определенных статей, которые не сопоставимы от периода к периоду или не отражают основную текущую деятельность Компании, обеспечивает прозрачность таких статей и помогает инвесторам и другим лицам сравнивать и анализировать операционные показатели от периода к периоду. В будущем Компания ожидает, что понесет расходы или внесет корректировки, аналогичные по характеру тем, которые представлены в настоящем документе; однако влияние на результаты Компании за определенный период может быть сильно изменчивым и трудно прогнозируемым. Наши финансовые показатели, не относящиеся к GAAP, могут быть несопоставимы с аналогичными показателями, используемыми или определяемыми в соответствии с другими компаниями. Несмотря на то, что Компания считает показатели, не относящиеся к GAAP, полезными для анализа своих результатов, они не предназначены для замены или замены любого представления, включенного в консолидированную финансовую отчетность, подготовленную в соответствии с GAAP.
Компания работает по всему миру, и большая часть ее чистых продаж приходится за пределами Соединенных Штатов. Соответственно, колебания курсов иностранных валют могут повлиять на результаты деятельности Компании. Таким образом, Компания представляет определенную информацию о чистых продажах, операционных результатах и разводненной прибыли на акцию, исключая влияние колебаний курсов иностранных валют, чтобы обеспечить основу для оценки эффективности ее основного бизнеса за пределами Соединенных Штатов. Постоянная информация о валюте сравнивает результаты между периодами, как если бы обменные курсы оставались неизменными период за периодом. Компания рассчитывает информацию о постоянной валюте путем пересчета результатов текущего периода с использованием среднемесячных обменных курсов иностранной валюты за предыдущий год и корректировки на влияние деятельности по хеджированию денежных потоков в иностранной валюте за период.
Reconciliation of Certain Consolidated Statements of Earnings Accounts
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Three Months Ended March 31 |
|
||||||||||||||||||||||||||
|
2022 |
2021 |
% Change |
|||||||||||||||||||||||||
($ in millions, except per
|
As
|
Returns/
|
Non-
|
Impact of
|
Non-
|
As
|
Returns/
|
Non-
|
Non-
|
Non-
|
||||||||||||||||||
Net sales |
$ |
4,245 |
|
$ |
1 |
|
$ |
4,246 |
|
$ |
52 |
|
$ |
4,298 |
|
$ |
3,864 |
|
$ |
10 |
|
$ |
3,874 |
|
10 |
% |
11 |
% |
Cost of sales |
|
994 |
|
|
— |
|
|
994 |
|
|
13 |
|
|
1,007 |
|
|
939 |
|
|
(4 |
) |
|
935 |
|
|
|
||
Gross profit |
|
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 expenses |
|
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 income |
|
738 |
|
|
179 |
|
|
917 |
|
|
2 |
|
|
919 |
|
|
616 |
|
|
178 |
|
|
794 |
|
15 |
% |
16 |
% |
Operating income |
||||||||||||||||||||||||||||
margin |
|
17.4 |
% |
|
|
21.6 |
% |
|
|
21.4 |
% |
|
15.9 |
% |
|
|
20.5 |
% |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other income |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
||
Provision for income |
||||||||||||||||||||||||||||
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 millions, except per
|
As
|
Returns/
|
Non-
|
Impact of
|
Non-
|
As
|
Returns/
|
Non-
|
Non-
|
Non-
|
||||||||||||||||||
Net sales |
$ |
14,176 |
|
$ |
3 |
|
$ |
14,179 |
|
$ |
(32 |
) |
$ |
14,147 |
|
$ |
12,279 |
|
$ |
10 |
|
$ |
12,289 |
|
15 |
% |
15 |
% |
Cost of sales |
|
3,274 |
|
|
— |
|
|
3,274 |
|
|
(4 |
) |
|
3,270 |
|
|
2,848 |
|
|
(9 |
) |
|
2,839 |
|
|
|
||
Gross profit |
|
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 expenses |
|
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 income |
|
3,091 |
|
|
202 |
|
|
3,293 |
|
|
(23 |
) |
|
3,270 |
|
|
2,384 |
|
|
303 |
|
|
2,687 |
|
23 |
% |
22 |
% |
Operating income |
||||||||||||||||||||||||||||
margin |
|
21.8 |
% |
|
|
23.2 |
% |
|
|
23.1 |
% |
|
19.4 |
% |
|
|
21.9 |
% |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Other income |
|
1 |
|
|
(1 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
||
Provision for income |
||||||||||||||||||||||||||||
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
|
|||||||||
|
|
|
|
||||||
|
March 31,
|
June 30, 2021 |
March 31,
|
||||||
($ in millions) |
(Audited) |
||||||||
ASSETS |
|
|
|
||||||
|
|
|
|
||||||
Cash and cash equivalents |
$ |
3,836 |
$ |
4,958 |
$ |
6,399 |
|||
Accounts receivable, net |
|
2,209 |
|
1,702 |
|
1,735 |
|||
Inventory and promotional merchandise |
|
2,830 |
|
2,505 |
|
2,134 |
|||
Prepaid expenses and other current assets |
|
625 |
|
603 |
|
729 |
|||
Total current assets |
|
9,500 |
|
9,768 |
|
10,997 |
|||
Property, plant and equipment, net |
|
2,493 |
|
2,280 |
|
2,106 |
|||
Operating lease right-of-use assets |
|
2,034 |
|
2,190 |
|
2,212 |
|||
Other assets |
|
7,332 |
|
7,733 |
|
4,585 |
|||
Total assets |
$ |
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 current liabilities |
|
5,414 |
|
5,298 |
|
5,197 |
|||
Long-term debt |
|
5,188 |
|
5,537 |
|
5,487 |
|||
Long-term operating 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 interest |
|
865 |
|
857 |
|
— |
|||
Total equity |
|
6,186 |
|
6,091 |
|
5,558 |
|||
Total liabilities and equity |
$ |
21,359 |
$ |
21,971 |
$ |
19,900 |
|||
|
|
|
|
||||||
SELECT CASH FLOW DATA (Unaudited) |
||||||
|
|
|
||||
|
Nine Months Ended
|
|||||
($ in millions) |
|
2022 |
|
|
2021 |
|
Net earnings |
$ |
2,358 |
|
$ |
1,860 |
|
Adjustments to reconcile net earnings to net cash flows from operating |
||||||
activities: |
|
|
||||
Depreciation and amortization |
|
546 |
|
|
475 |
|
Deferred income taxes |
|
(90 |
) |
|
(103 |
) |
Goodwill, other intangible and long-lived asset impairments |
|
216 |
|
|
114 |
|
Other items |
|
315 |
|
|
392 |
|
Changes in operating assets and liabilities: |
|
|
||||
Increase in accounts receivable, net |
|
(548 |
) |
|
(506 |
) |
Decrease (increase) in inventory and promotional merchandise |
|
(398 |
) |
|
13 |
|
Increase in other assets, net |
|
(61 |
) |
|
(122 |
) |
Increase (decrease) in accounts payable and other liabilities, net |
|
(369 |
) |
|
654 |
|
Net cash flows provided by operating activities |
$ |
1,969 |
|
$ |
2,777 |
|
|
|
|
||||
Other Investing and Financing Sources (Uses): |
|
|
||||
Capital expenditures |
$ |
(658 |
) |
$ |
(386 |
) |
Settlement of net investment hedges |
|
108 |
|
|
(175 |
) |
Payments to acquire treasury stock |
|
(1,998 |
) |
|
(316 |
) |
Dividends paid |
|
(624 |
) |
|
(561 |
) |
Proceeds (repayments) of current debt, net |
|
(4 |
) |
|
(746 |
) |
Proceeds from issuance of long-term debt, net |
|
— |
|
|
596 |
|
