net sales were $3.87 billion

The Estée Lauder Cos. is forecasting continued declines in prestige beauty in China next year.

The beauty company, which just revealed that its longtime chief executive officer Fabrizio Freda will retire next year, said reported and organic net sales are forecast to range between a decrease of 1 percent to an increase of 2 percent in its fiscal 2025, versus the prior year.

Adjusted diluted net earnings per common share are expected to increase between 7 percent and 15 percent and range between $2.78 and $2.98, below Wall Street forecasts of $3.97. 

Freda noted that this reflects persistent weak sentiment among Chinese consumers. 

“While our sales and profit outlook for fiscal 2025 is disappointing, this year we will make important strides, as we implement our strategy reset to continue rebalancing regional growth, deliver improved annual profitability, and strengthen go-to-market and innovation capabilities to elevate our execution in response to a more competitive market,” he said.

For the three months ended June 30, its fourth quarter, the company reported net sales of $3.87 billion, a 7 percent increase compared with $3.61 billion in the prior-year period. This was a touch above Wall Street estimates. Organic net sales increased 8 percent.

Its net loss widened to $284 million, and diluted net loss per common share was 79 cents.

For fiscal 2024 as a whole, net sales were $15.61 billion, a decrease of 2 percent from $15.91 billion in the prior year. Organic net sales fell 2 percent.

Within that, skin care net sales dropped 3 percent, primarily due to ongoing softness in overall prestige beauty in mainland China. Net sales from Estée Lauder, Clinique and Dr.Jart+ declined. Lar Mer and The Ordinary were bright spots, both growing.

Makeup net sales decreased 1 percent, fragrance net sales increased 2 percent and hair care declined 4 percent.