In the three months to 30 September, net sales for the company’s skincare and makeup categories declined by 14% and 10% respectively, while its hair care category recorded a 7% growth in net sales.
Its Americas business posted a 3% decline in net sales, while its businesses in Europe, the Middle East & Africa (EMEA) and Asia-Pacific recorded net sales declines of 5% and 7% respectively.
Estée Lauder recorded net earnings of $489m in Q1 2023, down from $692m in the same period of FY22.
The company’s diluted net earnings per common share (EPS) dropped to $1.35 during the quarter from $1.88 a year earlier, while its adjusted EPS declined 28% to $1.37.
Estée Lauder president and CEO Fabrizio Freda said: “For the first quarter, we delivered organic sales in line with our outlook and adjusted EPS ahead of it even as the transitory external pressures of Covid-19 restrictions in China, high inflation globally, and a strong US dollar intensified.
“Our multiple engines of growth strategy empowered us to seize prevailing growth opportunities amid the complexity.”
In the second quarter of FY23, Estée Lauder expects its net sales to fall by between 17% and 19% compared with the prior-year period.
The company expects its reported EPS for the period to be between $1.14 and $1.26.
Freda added: “We anticipate sequential acceleration to strong organic sales and adjusted EPS growth in the second half of our fiscal year as these pressures begin to abate, momentum continues to build in other areas of our business, and our ongoing investments in innovation and advertising drive growth.”