Estee Lauder Says Dollar Hurt Results, FX to Remain Unfavorable -- Currency Comment
03 Fevereiro 2023 - 4:24AM
Dow Jones News
By Paulo Trevisani
Estee Lauder Cos. said Thursday a stronger dollar had a negative
impact on net sales and operating income in its fiscal second
quarter, while forex is expected to remain unfavorable.
The company forecast foreign currency having a 4% negative
impact on net sales in full fiscal 2023. It expects net sales to
decline between 7% and 5% versus the prior year.
About the last quarter, President and Chief Executive Fabrizio
Freda cited a "moderation of the stronger U.S. dollar" as a factor
helping the company beat earnings expectations.
Estee Lauder said forex contributed to net sales falling 17% in
the quarter ended Dec. 31 from a year earlier, to $4.6 billion. It
said reported net sales were negatively affected by 5% of
foreign-currency translation.
The New York-based cosmetics supplier said currency conversion
was unfavorable by 10% in Asia Pacific and Europe and 4% in Middle
East and Africa.
The WSJ Dollar Index rose 7.8% last year, according to Dow Jones
Market Data, as the U.S. Federal Reserve increased interest rates
faster than its global counterparts. But in the fourth quarter it
fell 7%, as other central banks started to catch up. So far this
year, the gauge is down 2%.
Write to Paulo Trevisani at paulo.trevisani@wsj.com
(END) Dow Jones Newswires
February 02, 2023 11:46 ET (16:46 GMT)
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