(AOF) – Estée Lauder is expected to fall sharply on Wall Street after issuing a warning on its results. For the 2024 fiscal year, the cosmetics group now forecasts revenues at best up 1% and at worst down 2% compared to a previous forecast of growth of between 5% to 7%. Organically, sales are expected to fall by 1% at worst and increase by 2% at best. Estée Lauder previously expected internal growth of between 6% and 8%.
Adjusted earnings per share are expected to be between $2.17 and $2.42, compared with a previous range of $3.50 to $3.75.
The company blamed additional external headwinds. In mainland China, the expected growth rate for all prestige beauty products has slowed.
In the first quarter, ended at the end of September, the group’s revenues fell 10% to $3.52 billion. They are down 11% in organic data.
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Market boom for several more years
According to Bain & Company, the global luxury market (fashion, cars, hotels, wines and spirits, cruises, etc.) will have recorded a 21% jump in sales in 2022, to 1,384 billion euros. The luxury personal products segment (jewelry, clothing, watches, leather goods, etc.) is expected to grow by 22% and again grow by 3% to 8% in 2023 despite the expected economic slowdown. Growth is expected to continue in the following years, with an increase expected to reach 60% by 2030! According to Bain, American spending in Europe more than doubled between 2019 and 2022. This development is largely explained by a strong dollar. The Chinese market, on the other hand, is at half mast due to the “zero Covid” policy and strict confinements.