Estée Lauder (EL) 2Q17 Results: Mixed Quarter, Softer Outlook Due to Currency Effects

Executive Summary

• Estée Lauder reported fiscal 2Q17 adjusted EPS of $1.22, flat year over year but beating the $1.17 consensus estimate. Net sales were $3.21 billion, up 2.7% year over year but slightly missing the $3.24 billion consensus estimate.
• Fragrance was the strongest product category, driven by double-digit growth from some luxury brands and from acquisitions. Asia was the strongest geography, driven by double-digit growth in China and the Philippines.
• The company provided full-year and 3Q17 guidance ranges that were below consensus estimates, due to the negative impact of exchange rates.