EL Stock Jumps 12.5% After Strong Quarterly Results

Estee Lauder Companies Inc (NYSE:EL) reported its fourth-quarter fiscal 2019 results today, with EL stock making big gains as a result.

10th Consecutive Quarter of Growth

The New York-based cosmetics manufacturer reported net sales of $14.86 billion USD, an increase of 9% from $13.68 billion in the previous year. Net earnings rose to $1.79 billion USD from $1.11 billion USD last year, while total operating income rose by 13% from $2.06 billion USD to $2.31 billion USD, a 13% increase from last year. These results marked the 10th consecutive quarter in which EL has improved its earnings and sales and saw EL stock rise 12.5% during Monday trading.

Optimistic Forecast for EL Stock

The strong financial performance has largely been attributed to consistent growth across most product categories and disciplined expense management by the company. Estee Lauder also expects these gains to continue into next year, owing to an increase in demand for luxury beauty products. Investors reiterated the optimistic forecast of the company, as EL stock hit an all-time peak of $201.65. EL shares have been on a consistent incline for most of the year, and today’s announcement should see that trend continue.

Estee Lauder CEO Fabrizio Freda said, “Fiscal 2019 was an outstanding year for our Company. We achieved strong net sales gains across our business, fueled by investments in our strategic priorities, including improved data analytics that helped power our innovation and digital marketing. Our winning strategy led to continued share gains in global prestige beauty.”

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Impact of International Political Tensions

The report was not all good news for EL stock, however, as the international political tensions continue to hamper companies around the globe. While sales remained strong in China and Hong Kong, despite Trump’s trade war and ongoing protests, UK sales struggled amid consumer uncertainty as a result of Brexit. The dominance of online shopping also impacted over-the-counter sales for Estee Lauder in North America.

Declining physical sales in North America saw EL stock drop by 5% following the release of its Q1 results.

Caileam Raleigh

About the author: Caileam Raleigh is a financial content writer from Dundalk, Ireland who is currently working in Vancouver. Having graduated with a BA in Journalism with French from the Technological University of Dublin in 2019, he is currently a full-time contributor for PotStockNews, MicroSmallCap, CryptoCurrencyNews, and StreetSignals. Caileam cites music and football as his two great passions in life and is a fan of Liverpool FC, his beloved hometown Dundalk FC, and the sounds of Mr David Bowie.