Estee Lauder Companies Inc (NYSE:EL) shares moved skyward Monday, on reporting quarterly numbers.
The company reported net sales of $3.56 billion for its first quarter ended September 30, 2020, a decrease of 9%, on a reported basis and in constant currency, from $3.90 billion in the prior-year period. The net sales decline was driven by some temporary retail store closures and lower foot traffic in open stores attributable to COVID-19, partially offset by strong growth online.
Travel retail net sales were relatively flat year-over-year and net sales from the Company’s acquisition of Have&Be Co. Ltd. (“Dr. Jart+”) contributed approximately three percentage points of net sales growth.
The company reported net earnings of $523 million, compared with net earnings of $595 million in the prior-year period. Diluted net earnings per common share were $1.42, compared with $1.61 reported in the prior-year period. Excluding the benefit of currency translation, adjusted diluted earnings per common share decreased 14% to $1.44.
CEO Fabrizio Freda, declared, “We are pleased with the stronger than expected start to our fiscal year amid this difficult moment as the global community continues to confront COVID-19. We delivered significant sequential improvement in net sales growth in every product category driven by progress around the world.
“Asia/Pacific again excelled with double-digit year-over-year growth in mainland China. Travel retail was a stand-out performer as Chinese tourists were drawn to the growing duty-free shops in Hainan Island and purchase limits increased there.”
EL shares towered $12.32, or 5.6%, over Friday’s close to begin at $232.16.