Estee Lauder (EL) -) shares nudged higher in pre-market trading ahead of the luxury group's fourth quarter earnings prior to the opening bell with investors likely focused on the group's near-term prospects in a struggling Asia economy.
Estee Lauder, which focuses on the higher-end of the cosmetics market, is expected to post a fourth quarter loss of 4 cents per share, with revenues down 2.5% from last year to around $3.47 billion.
The group, which has lost market share to its France-based rival, L'Oreal, in the U.S. over the past five years, has focused on growth in Asia, where China's uneven post-Covid recovery has hammered consumer spending and triggered a spike in unemployment over recent months.
Earlier this spring, Estee Lauder lowered its full-year profit forecasts for a third time, warning investors that sales for its 2023 fiscal year are likely to fall between 10% and 12%, nearly double its prior estimate.
The ongoing surge in summer travel, however, could support Estee Lauder's retail unit, which capitalizes on spending in airports and other duty-free zones.
U.S. sales will also be in focus after Tapestry (TPR) -), the parent company of Coach which recently unveiled plans to buy luxury house Capri Holdings (CPRI) -) for $8.5 billion, forecast muted 2024 revenues amid weakening demand from cash-strapped American consumers.
Estee Lauder shares were marked 0.15% higher in pre-market trading to indicate an opening bell price of $162.30 each.
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