The Estée Lauder Companies Inc (EL) Q1 2023 Earnings Call Transcript

The Estée Lauder Companies Inc (NYSE:EL) Q1 2023 Earnings Conference Call November 2, 2022 9:30 AM ET

Company Participants

Rainey Mancini - Senior Vice President, Investor Relations

Fabrizio Freda - President and Chief Executive Officer

Tracey Travis - Executive Vice President and Chief Financial Officer

Conference Call Participants

Dara Mohsenian - Morgan Stanley

Chris Carey - Wells Fargo

Steve Powers - Deutsche Bank

Dana Telsey - Telsey Advisory Group

Bryan Spillane - Bank of America

Rupesh Parikh - Oppenheimer

Jason English - Goldman Sachs

Operator

Good day, everyone and welcome to the Estée Lauder Company’s Fiscal 2023 First Quarter Conference Call. Today’s call is being recorded and webcast. For opening remarks and introductions, I would like to turn the call over to the Senior Vice President of Investor Relations, Ms. Rainey Mancini. Please go ahead.

Rainey Mancini

Hello. On today’s call are Fabrizio Freda, President and Chief Executive Officer and Tracey Travis, Executive Vice President and Chief Financial Officer.

Since many of our remarks today contain forward-looking statements, let me refer you to our press release and our reports filed with the SEC, where you will find factors that could cause actual results to differ materially from these forward-looking statements. To facilitate the discussion of our underlying business, the commentary on our financial results and expectations is before restructuring and other charges and adjustments disclosed in our press release. Unless otherwise stated, all organic net sales growth excludes the non-comparable impacts of acquisitions, divestitures, brand closures and the impact of currency translation. You can find reconciliations between GAAP and non-GAAP measures in our press release and on the Investors section of our website.

As a reminder, references to online sales include sales we make directly to our consumers through our brand.com sites and through third-party platforms. It also includes estimated sales of our products through our retailers’ websites. [Operator Instructions]

And now I will turn the call over to Fabrizio.

Fabrizio Freda

Thank you, Rainey and hello to everyone. It is good to be with you today. Since we spoke in mid-August, the headwinds of COVID-19 restrictions in China, high inflation globally and a strong U.S. dollar intensified significantly. Amid the increased complexity, we delivered organic sales, down 5%, in line with our outlook and adjusted diluted EPS higher than expected. Even in these conditions, our multiple engines of growth strategy empower us to seize prevailing growth opportunities. Indeed, we realized outstanding performance in many developed and emerging markets around the world to partially offset the impact of COVID-19 restrictions in Asia travel retail and domestic China as well as tighter inventory management by some retailers in the U.S.