Estee Lauder Companies Inc (NYSE:EL) stock rose 1.65% (As on May 4, 11:35:50 AM UTC-4, Source: Google Finance) after the company posted mixed results for the third quarter of FY 22. Net sales grew in every product category, largely reflecting continued recovery in brick-and-mortar retail stores, driven by double-digit growth in The Americas and Europe, the Middle East & Africa (“EMEA”) regions, as well as growth in global online. Gross profit came in at $3,251 million, up 11% year over year. The gross margin expanded to 76.6% from 75.7% reported in the year-ago quarter. The company reported an operating income of $738 million, up from $616 million reported in the year-ago quarter. Operating income margin came in at 17.4%, up from 15.9% reported in the year-ago quarter. The Company reported net earnings of $0.56 billion, compared with net earnings of $0.46 billion in the prior-year period. The Company ended the quarter with $3.84 billion in cash and cash equivalents after returning $2.62 billion cash to stockholders through dividends and share repurchases.
EL in the third quarter of FY 22 has reported the adjusted earnings per share of $1.90, beating the analysts’ estimates for the adjusted earnings per share of $1.66, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 10 percent to $4.25 billion in the third quarter of FY 22, missing the analysts’ estimates for revenue of $4.32 billion. Organic net sales grew 9% in the quarter.
Moreover, Skin Care’s sales were up 6% year over year (up 7% at cc) to $2,395 million. Makeup revenues increased 9% year over year (up 11% at cc) to $1,114 million. In the Fragrance category, revenues surged 28% year over year (up 31% at cc) to $579 million. Hair Care sales totaled $147 million, up 15% (up 17% at cc). Sales in the Americas rose 15% year over year (up 14% at cc) to $1,053 million. Revenues in Europe, the Middle East & Africa region increased 17% (up 19% at cc) to $1,990 million. In the Asia-Pacific region, sales declined 4% (down 3% at cc) to $1,203 million.
Additionally, the company will pay a quarterly dividend of $.60 per share on the Company’s Class A Common Stock and Class B Common Stock on June 15, 2022 to stockholders of record at the close of business on May 31, 2022. Capital Expenditures increased to $658 million compared to $386 million in the prior-year period.