Estee Lauder expected to report sales and earnings drop for Q2, implementing profit recovery plan.

From Nasdaq: 2025-01-30 05:58:00

Estee Lauder (EL) is expected to report a drop in sales and earnings for the second quarter of fiscal 2025. Analysts predict a 6.9% decrease in net sales to around $4 billion and a 63.6% decline in earnings per share to 32 cents. EL faces challenges in China and travel retail sectors.

Despite challenges, Estee Lauder is implementing a Profit Recovery and Growth Plan focusing on margin expansion, targeted investments, and digital channels. The company expects a 6-8% decline in organic net sales and a 60-77% drop in adjusted EPS for the second quarter. Estee Lauder remains well-positioned in emerging markets.

The Estee Lauder Companies (EL) is poised to beat earnings estimates this quarter with a positive Earnings ESP and a Zacks Rank #3. Other stocks with potential to beat earnings include Church & Dwight (CHD) and Clorox (CLX), which also have a favorable combination of elements for a strong performance this reporting cycle.

Kenvue Inc. (KVUE) is another stock to watch with a positive Earnings ESP and a Zacks Rank #3. The company is expected to see growth in quarterly revenues of 2.9% and a decrease in EPS of 19.4% year over year. Stay informed with Zacks Investment Research for the latest updates on these companies.



Read more at Nasdaq: EL Gears Up for Upcoming Q2 Earnings: Here’s What You Should Know