Reporter Shu Dongni
On February 6th, Est é e Lauder released its financial report for the second quarter of the 2024 fiscal year from September 30th, 2023 to December 31st, 2023. During the reporting period, the company's revenue was $4.28 billion, a year-on-year decrease of 7%, but better than market expectations.
Despite a decline in performance in the second quarter of the 2024 fiscal year, the company stated that due to double-digit retail growth in department store counters, special channels, and self operated stores, offline stores in the Chinese market are expected to perform strongly in the third quarter, and it is expected that new products will contribute more to sales in the second half of the fiscal year than in the first half.
In the first half of fiscal year 2024, Est é e Lauder began implementing a profit recovery plan, reducing inventory in Asian tourism retail trade, improving working capital, achieving a higher level of pricing strategy, and strictly controlling expenses. During the reporting period, the company continued to expand the plan, including adjusting the group's organizational structure, optimizing gross profit margin, reducing cost base and management expenses, and increasing investment in consumer related market activities.
The company stated that it will strive to re-establish sustainable and profitable long-term growth models in various regions, categories, brands, and channels in the future, with a focus on investing in areas such as innovation, advertising, and emerging market development to help the group recover and win market share. "We expect to see double-digit organic growth in net sales in the second half of fiscal year 2024."
Fu Yide, President and CEO of Est é e Lauder Group, stated: "In the second half of the fiscal year, we will leverage strategic initiatives and innovative spirit to advance our North American business, accelerate the growth of the Chinese market, and drive the booming development of developed and emerging markets in the EMEA, Latin America, and Asia Pacific regions. It is encouraging that we are at a turning point. In the second half of 2024, we are expected to resume strong organic growth and expand our profitability in the first half of the year."