Notice: Undefined variable: fileR in
/me/beta.myiris.com/htdocs/newsCentre/bin/addLinksNew.php on line
17
Notice: Undefined variable: fileR in
/me/beta.myiris.com/htdocs/newsCentre/bin/addLinksNew.php on line
142
The Estee Lauder Companies Inc (EL) has reported 12.45 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $298 million, or $0.80 a share in the quarter, compared with $265 million, or $0.71 a share for the same period last year. Revenue during the quarter grew 7.53 percent to $2,857 million from $2,657 million in the previous year period. Gross margin for the quarter contracted 172 basis points over the previous year period to 79.31 percent. Total expenses were 85.05 percent of quarterly revenues, down from 85.55 percent for the same period last year. This has led to an improvement of 49 basis points in operating margin to 14.95 percent.
Operating income for the quarter was $427 million, compared with $384 million in the previous year period.
Fabrizio Freda, President and Chief Executive Officer, said, “We delivered an excellent third quarter performance. Sales accelerated across every geographic region and in our three largest product categories, reflecting the range and strength of our brand portfolio and product offerings. Our business in global travel retail and in China was exceptionally strong, driven by strong sales gains in virtually every brand. Our mid-sized and luxury brands, as well as online and specialty-multi retail channels, also led growth. Additionally, our recent acquisitions of Too Faced and BECCA performed above expectations. These elements contributed to stronger-than-expected constant currency sales growth that, combined with disciplined expense management, resulted in sharply higher earnings per share.
For fiscal year 2017, The Estee Lauder Companies Inc revenue to grow in the range of 4 percent to 5 percent and its expects diluted earnings per share to be in the range of $3.02 to $3.09.
Working capital increases
The Estee Lauder Companies Inc has recorded an increase in the working capital over the last year. It stood at $2,112 million as at Mar. 31, 2017, up 16.13 percent or $293.40 million from $1,818.60 million on Mar. 31, 2016. Current ratio was at 1.74 as on Mar. 31, 2017, down from 1.75 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 60 days for the quarter from 150 days for the last year period. Days sales outstanding went down to 46 days for the quarter compared with 48 days for the same period last year.
Days inventory outstanding has decreased to 100 days for the quarter compared with 201 days for the previous year period. At the same time, days payable outstanding went down to 86 days for the quarter from 99 for the same period last year.
Debt increases substantially
The Estee Lauder Companies Inc has witnessed an increase in total debt over the last one year. It stood at $3,896 million as on Mar. 31, 2017, up 103.55 percent or $1,982 million from $1,914 million on Mar. 31, 2016. Total debt was 34.04 percent of total assets as on Mar. 31, 2017, compared with 21.71 percent on Mar. 31, 2016. Debt to equity ratio was at 0.94 as on Mar. 31, 2017, up from 0.50 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 15.25 for the quarter from 21.33 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
