Estee Lauder President and CEO Fabrizio Freda expressed confidence Tuesday within the beauty firm’s positioning heading into the holiday purchasing season, regardless of ongoing logistics challenges resembling congested U.S. ports.
Freda’s feedback — made in an interview with CNBC’s Jim Cramer on “Mad Money” — got here after Estee Lauder beat Wall Street’s expectations on first-quarter income and per-share earnings. Freda mentioned it was “probably our best quarter in a long time,” suggesting there was “great execution” inside the corporate as evidenced by its holiday preparedness.
“Imagine that in a period where there is a lot of supply-chain disruption, a lot of supply-chain issues because of Covid in different parts of the world, we were ready with our holiday shipments,” Freda mentioned. “Most of our holiday shipments have already been shipped to the retailers, so we’re already in the game well before the full holiday season starts, which is rare in this moment of disruption.”
Estee Lauder reported $4.39 billion in gross sales for the three months ended Sept. 30, up 23% 12 months over 12 months whereas topping analysts’ forecasts of $4.25 billion. The firm, which owns manufacturers Michael Kors, Clinique and Aveda, amongst others, earned $1.86 per share, eclipsing estimates by 16 cents.
Shares of New York-based Estee Lauder rose 4.14% Tuesday to shut at $338.62 apiece. The inventory is up 27.2% 12 months to date, in contrast with the S&P 500’s 23.3% acquire over the identical span.
Freda, who’s been CEO of Estee Lauder since 2009, mentioned the corporate benefited within the first quarter from extra folks returning to actions they paused in the course of the Covid pandemic resembling working on the workplace or attending in-person lessons. That spurred demand for Estee Lauder’s make-up portfolio and different beauty merchandise, he mentioned.
Freda additionally highlighted the constructive financial advantages of widespread Covid vaccinations.
“There was a moment, particularly during this quarter, where in North America, in Europe, people were so energized to be able to be back … with a more normalized life thanks to the growing vaccinations that brick-and-mortar [sales] really picked up and that was good to see how, at the same time, the online sales continued to grow,” Freda mentioned.