Estee Lauder Beats Ahead of Coty & L'Oréal Earnings

Estee Lauder beats on 2Q results; sales at $4.28b (-8% yoy) vs. c$4.23b (-9.7%); strong beat on NI & gross margin beats at 73% (c71%); stock rises +14%, L'Oreal up +1.3% on the beat, Coty +2% (pre-market) - latter two Euro curves unch to 3bps tighter

Small misses in America & APAC offset by beat in EMEA. On the latter it says "mixed performance by market led to flat growth." It attributed headline sales fall (less than expected) to challenges in Asia travel & ongoing softness in mainland China prestige beauty market. Also noted disruptions in Israel and Middle East. Growth outside of those regions offsetting falls - including growth in "nearly every market in Latin America"

Forecasts 4-6% organic rev growth. FY24 outlook at -1 to +1% organic revenue growth (previously -2 to +1% guidance). FY24 EPS misses at $2.09-$2.23 (c$2.17-2.42).* Its also expanded its restructuring program (begins Q3 and is expected to be substantially completed by end of FY26) - it will involved 3-5% workforce reduction (some staff may be redeployed). Its expected to drive annual gross benefits of $350-$500m - portion of which is to be reinvested.

No large changes in debt or cash over 1H, maintains qtrly dividend at $0.66/share.