Author：Shalajiang

Compile：Azure

Source：GPLP

On May 1, Estee Lauder (EL.NYSE) released its third quarter financial report for fiscal year 2020.

The financial report shows that Estee Lauder’s net sales is $ 3.35 billion , down 11% year-on-year; operating profit is $ 109 million, down 84% year-on-year.

As for the reasons for the decline in performance, Estee Lauder said that under the influence of public health event, a large number of its stores have been suspended and sales have been declined.

Estee Lauder owns beauty and cosmetic brands such as Estee Lauder, Clinique, LA MER, MAC, and Tom Ford. Its product categories include skin care, beauty, perfume, and hair care. The products are sold in all regions of the world.

However, regardless of products or regions, Estee Lauder’s third quarter of fiscal year 2020 results were not “satisfactory.”

In terms of categories, in the third quarter of fiscal year 2020, sales of all categories of Estee Lauder showed a declining trend. Among them, skincare sales fell 1% to 1.72 billion dollars, beauty and cosmetics sales fell 22% to 1.15 billion dollars, perfume sales fell 11% to 350 million dollars, hair care sales fell 13% to 120 million dollars.

From the perspective of regional sales, Estee Lauder’s sales in Asia Pacific and other markets have not changed significantly, but the American market has shown a double-digit decline.

Estee Lauder’s sales fell 23% to $ 890 million in the third quarter of fiscal 2020 in American market, sales fell 6% to $ 1.53 billion in the Europe, Middle East and Africa markets; sales fell 4% to $ 930 million in the Asia-Pacific market.

In addition, Estee Lauder’s American market lost $ 220 million in operating profit and double-digit growth in online channel sales in the Asia-Pacific market.

Despite the recovery of the mainland China market and the increase in e-commerce sales, it still cannot offset the losses suffered. Estee Lauder said it expects future performance to continue to decline.