The Estée Lauder Companies Inc. (EL) Q3 2023 Earnings Call Transcript

The Estée Lauder Companies Inc. (NYSE:EL) Q3 2023 Earnings Conference Call May 3, 2023 9:30 AM ET

Company Participants

Rainey Mancini - Senior Vice President of 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

Rupesh Parikh - Oppenheimer

Oliver Chen - TD Cowen

Lauren Lieberman - Barclays

Operator

Good day, everyone, and welcome to The Estée Lauder Companies' Fiscal 2023 Third 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 Senior Vice President of Investor Relations, Ms. Rainey Mancini. Ma'am, you may begin.

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'll 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 also excludes the non-comparable impacts of acquisitions, divestitures, brand closures, and the impact of foreign currency translation. You can find reconciliations between GAAP and non-GAAP measures in our press release and on the Investors section of our Web site.

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' Web sites.

During the Q&A session, we ask that you please limit yourselves to one question, so we can respond to all of you within the time scheduled for this call.

And now I'll turn the call over to Fabrizio.

Fabrizio Freda

Thank you, Rainey, and hello to everyone. We appreciate you being with us today to discuss our third quarter results, and revised outlook for fiscal year 2023.

In the third quarter, organic sales fell 8% at the high-end of our outlook range, and the sequential improvements from the decline of 11% in the second quarter. Nearly all developed and emerging markets grew organically, and outperformed our expectations to offset an even lower-than-expected recovery in our Asia travel retail business.