Estée Lauder Companies Inc. (NYSE:EL) Q2 2024 Earnings Conference Call February 5, 2024 9:30 AM ET
Company Participants
Fabrizio Freda - President, Chief Executive Officer
Tracey Travis - Executive Vice President, Chief Financial Officer
Rainey Mancini - Senior Vice President, Investor Relations
Conference Call Participants
Dara Mohsenian - Morgan Stanley
Bryan Spillane - Bank of America
Olivia Tong - Raymond James
Oliver Chen - TD Cowen
Dana Telsey - Telsey Advisory Group
Steve Powers - Deutsche Bank
Lauren Lieberman - Barclays
Operator
Good day everyone and welcome to the Estée Lauder Company’s fiscal 2024 second 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.
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 those 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 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.
During the Q&A session, we ask that you please limit yourself to one question so we can respond to all of you within the time scheduled for this call.
Now I’ll turn the call over to Fabrizio.
Fabrizio Freda
Thank you Rainey and hello to everyone. We appreciate you joining us today.
For the second quarter, we delivered our outlook for organic sales decline of 8% and exceeded expectations for adjusted diluted EPS. Organic sales in our global travel retail business decreased 28% with retail sales trends better than organic performance, reflecting both the execution of our priority to reduce trade inventory in alignment with retailers and efforts by various local authorities to contain structured market activity. We made meaningful progress with trade inventory levels in Asia travel retail and continue to expect to be a normalized trade inventory levels by the end of the third quarter of this fiscal year.