Most of Estee Lauder’s holiday product has already been shipped to retailers, says the CEO

Estee Lauder President and CEO Fabrizio Freda on Tuesday expressed confidence in the cosmetics company’s positioning on its way into the Christmas shopping season, despite ongoing logistical challenges such as congested US ports.

Freda’s comments – made in an interview with CNBC’s Jim Cramer on “Mad Money” – came after Estee Lauder beat Wall Street’s expectations for first quarter revenue and earnings per share. shares. Freda said it was “probably our best quarter in a long time,” suggesting there was “good execution” inside the company, as evidenced by its holiday readiness.

“Imagine that in a period where there are a lot of supply chain disruptions, many supply chain problems due to Covid in different parts of the world, we were ready with our holiday shipments,” Freda said. “Most of our holiday shipments have already been shipped to dealers, so we’re already up and running well before the full holiday season starts, which is rare at this moment of disruption.”

Estee Lauder reported $ 4.39 billion in sales for the three months ending Sept. 30, a 23% year-over-year increase, while topping analysts’ forecasts of $ 4.25 billion. The company, which owns brands Michael Kors, Clinique and Aveda, among others, earned $ 1.86 per share, overshadowing estimates by 16 cents.

Shares of New York-based Estee Lauder rose 4.14% Tuesday to close at $ 338.62 a share. The stock has risen 27.2% year to date compared to the S&P 500’s 23.3% gain over the same period.

Freda, who has been CEO of Estee Lauder since 2009, said the company in the first quarter benefited from more people returning to activities they paused during the Covid pandemic, such as working in the office or attending personal classes. It spurred demand for Estee Lauder’s makeup portfolio and other cosmetic products, he said.

Freda also highlighted the positive economic benefits of widespread Covid vaccinations.

“There was a moment, especially in this quarter, when people in North America, in Europe, were so energetic to be able to return … with a more normalized life thanks to the growing vaccinations that bricks and mortar [sales] really increased and it was good to see how online sales at the same time continued to grow, “said Freda.

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