Published on 2 Feb 2023 on Zacks via Yahoo Finance
The Estee Lauder Companies (EL) Down Despite Q2 Earnings Beat
The Estee Lauder Companies Inc. EL reported second-quarter fiscal 2023 results, with the top and bottom line surpassing the respective Zacks Consensus Estimate. However, the metrics declined year over year. Shares of the company fell almost 4% during the pre-market session.COVID-19 continued affecting the company’s operating environment throughout the first half of fiscal 2023, which included curbs in China that weighed on travel retail in Hainan and retail traffic in mainland China. Results were affected by increased inflation, concerns surrounding the recession and unfavorable currency rates.Management is lowering its fiscal 2023 outlook, thanks to disruption to travel and staffing levels in Hainan during November and December and the recently-unveiled potential roll-back of COVID-associated supportive measures across Korea duty-free. Such factors are causing near-term, transitory pressure on the company’s travel retail business.
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