EL Stock Tumbles 6% Lower on Disappointing Losses



a screen shot of a person: Estee Lauder (EL) cosmetics store at Elements Shopping Mall.


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Estee Lauder (EL) cosmetics store at Elements Shopping Mall.

Estee Lauder (NYSE:EL) earnings for the cosmetic retail company’s fiscal fourth quarter of 2020 have EL stock taking a beating on Thursday. That’s due to its adjusted losses per share of 53 cents missing Wall Street’s estimate for a 19-cent loss. Its revenue of $2.43 billion also couldn’t reach the estimate of $2.45 billion.



Estee Lauder (EL) cosmetics store at Elements Shopping Mall.


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Estee Lauder (EL) cosmetics store at Elements Shopping Mall.

Here’s what else went wrong for Estee Lauder in its most recent earnings report.

  • Adjusted per-share losses are down massively compared to adjusted earnings per share of 64 cents in fiscal Q4 2019.
  • Revenue for the quarter is sitting 32% lower than the $3.59 billion reported in the same period of the year prior.
  • Operating loss of $543 million is a negative switch year-over-year from an operating income of $216 million.
  • The Estee Lauder earnings report also includes a net loss of $459 million.
  • That’s a major decline from the company’s net income of $158 million reported during the same time last year.

Fabrizio Freda, president and CEO of Estee Lauder, said this during the earnings report.

“Fiscal 2020 was a year without parallel, as we delivered record sales and exceptionally strong adjusted EPS growth in our first half and navigated with agility through an unprecedented pandemic in our second half. The second half also marked a period of profound pain as tragic events in the United States highlighted the systemic racial injustice that has plagued our society for far too long.”

Estee Lauder isn’t providing specific financial guidance at this time. That’s due to the novel coronavirus affecting retail markets. Many other companies are doing the same during the pandemic.

EL stock was down 6.4% as of Thursday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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