Estée Lauder Companies' net sales fell 2% in the first half of 2024, and earnings per share plummeted 61%

The Estée Lauder Companies announced its results for the fiscal year ending June 30, 2024. Net sales fell 2% from the previous year, totaling $15.61 billion. Net profit was $390 million, compared with $1.01 billion last year.

By category, skin care and hair care sales both fell 4%, while makeup sales fell 1%. Therefore, although fragrance sales rose slightly by 1%, they still dominated sales.

Estée Lauder attributed its sales decline to the continued weakness of the high-end beauty market in mainland China and the decline in Asian travel retail sales in the first half of fiscal 2024.

President and CEO Fabrizio Freda revealed: "In the fourth quarter of fiscal 2024, we achieved organic sales expectations and exceeded earnings expectations, ending a difficult year. Organic sales and adjusted earnings per share resumed growth in the second half of the year.

"We expect the Chinese high-end beauty market to continue to decline in fiscal 2025, mainly reflecting the continued low sentiment of Chinese consumers. We intend to drive share gains in this market. For the rest of our business, we plan to improve performance in developed and emerging markets. "