Unlocking Estee Lauder (EL) International Revenues: Trends, Surprises, and Prospects

Core Insights - Estee Lauder's total revenue for the quarter ending September 2024 was $3.36 billion, reflecting a decline of 4.5% year-over-year [4] - The company's international operations are crucial for its financial health and growth trajectory, with significant contributions from regions like Asia/Pacific and Europe, the Middle East & Africa [2][3] Revenue Breakdown - Asia/Pacific contributed $944 million, accounting for 28.09% of total revenue, which was a surprise decline of -3.01% compared to analyst expectations of $973.3 million [5] - Europe, the Middle East & Africa generated $1.23 billion, representing 36.60% of total revenue, also falling short of expectations by -2.55% [6] Future Revenue Projections - Analysts project total revenue for the current fiscal quarter to reach $3.99 billion, a decline of 6.7% from the same quarter last year, with Asia/Pacific expected to contribute $1.41 billion (35.2%) and Europe, the Middle East & Africa $1.68 billion (42%) [7] - For the full year, total revenue is anticipated to be $14.97 billion, down 4.1% from the previous year, with contributions from Asia/Pacific and Europe, the Middle East & Africa expected to be $4.84 billion (32.4%) and $6.33 billion (42.3%) respectively [8] Market Context - The dependency on global markets presents both opportunities and risks for Estee Lauder, making the monitoring of international revenue trends essential for predicting future performance [9] - In the current geopolitical climate, analysts are closely observing these trends to adjust earnings predictions, which are influenced by the company's performance in its home market as well [10]