Estée Lauder: Q3 FY21 Results Quick Read (Substack Exclusive)

Flash Note (EL US) (Buy)

Estée Lauder reported its Q3 FY21 (January-March 2021) results this morning. Shares are currently down 4.1% pre-market.

Sales & EBIT Both Exceeded Pre-COVID FY19

In Q3 FY21, Estée Lauder sales grew 13% year-on-year excluding currency, against a prior year decline of 9%. EBIT rose to $761m, from $134m in Q3 FY20, and was slightly higher than the Q3 FY19 EBIT of $752m.

Sales Growth Again Led by Asia/Pacific

Estée Lauder’s Q3 FY21 sales growth was highest in Asia/Pacific, growing 26% excluding currency, against a prior-year decline of 1%.

Sales has also recovered in EMEA, where it grew 10% against a prior-year decline of 5%, led by Travel Retail and Online.

Sales has partially recovered in the Americas, where it was up 4% in Q3 FY21 against a prior-year decline of 23%, with growth in North America offset by declines in LATAM, where COVID-19 was resurgent and government restrictions were increased.

Travel Retail sales, primarily reported as part of EMEA, increased year-on-year, thanks to stron…