In This Article:
Have you evaluated the performance of Estee Lauder's (EL) international operations during the quarter that concluded in December 2024? Considering the extensive worldwide presence of this beauty products company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth.
The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.
Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.
In our recent assessment of EL's quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The company's total revenue for the quarter amounted to $4 billion, showing decrease of 6.4%. We will now explore the breakdown of EL's overseas revenue to assess the impact of its international operations.
A Closer Look at EL's Revenue Streams Abroad
Of the total revenue, $1.49 billion came from Europe the Middle East & Africa during the last fiscal quarter, accounting for 37.31%. This represented a surprise of -0.17% as analysts had expected the region to contribute $1.5 billion to the total revenue. In comparison, the region contributed $1.23 billion, or 36.60%, and $1.59 billion, or 37.13%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Asia/Pacific contributed $1.29 billion in revenue, making up 32.14% of the total revenue. When compared to the consensus estimate of $1.27 billion, this meant a surprise of +1.51%. Looking back, Asia/Pacific contributed $944 million, or 28.09%, in the previous quarter, and $1.45 billion, or 33.86%, in the same quarter of the previous year.
International Revenue Predictions
It is projected by analysts on Wall Street that Estee Lauder will post revenues of $3.52 billion for the ongoing fiscal quarter, a decline of 10.6% from the year-ago quarter. The expected contributions from Europe the Middle East & Africa and Asia/Pacific to this revenue are 43.6% and 30.4%, translating into $1.53 billion and $1.07 billion, respectively.