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Estee Lauder (EL) International Revenue Performance Explored

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Did you analyze how Estee Lauder (EL - Free Report) fared in its international operations for the quarter ending June 2025? Given the widespread global presence of this beauty products company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Being present in foreign markets serves as protection against local economic declines and helps benefit from more rapidly expanding economies. Yet, such expansion also introduces challenges related to currency fluctuations, geopolitical uncertainties and varied market behaviors.

Upon examining EL's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter amounted to $3.41 billion, marking a decrease of 11.9% from the year-ago quarter. We will next turn our attention to dissecting EL's international revenue to get a clearer picture of how significant its operations are outside its main base.

A Look into EL's International Revenue Streams

Europe the Middle East & Africa accounted for 37.9% of the company's total revenue during the quarter, translating to $1.29 billion. Revenues from this region represented a surprise of -1.64%, with Wall Street analysts collectively expecting $1.31 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe the Middle East & Africa contributed $1.36 billion (38.3%) and $1.65 billion (42.7%) to the total revenue, respectively.

During the quarter, Asia/Pacific contributed $1.17 billion in revenue, making up 34.2% of the total revenue. When compared to the consensus estimate of $1.14 billion, this meant a surprise of +2.62%. Looking back, Asia/Pacific contributed $1.14 billion, or 32.1%, in the previous quarter, and $1.21 billion, or 31.1%, in the same quarter of the previous year.

Prospective Revenues in International Markets

For the current fiscal quarter, it is anticipated by Wall Street analysts that Estee Lauder will post revenues of $3.35 billion, which reflects a decline of 0.2% the same quarter in the previous year. The revenue contributions are expected to be 29.7% from Europe the Middle East & Africa ($995.7 million), and 31.5% from Asia/Pacific ($1.06 billion).

Analysts expect the company to report a total annual revenue of $14.81 billion for the full year, marking an increase of 3.4% compared to last year. The expected revenue contributions from Europe the Middle East & Africa and Asia/Pacific are projected to be 31% ($4.58 billion), and 28.6% ($4.23 billion) of the total revenue, in that order.

Concluding Remarks

Estee Lauder's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

Estee Lauder, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Exploring Recent Trends in Stock Price

Over the preceding four weeks, the stock's value has appreciated by 0.9%, against an upturn of 2.7% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Staples sector, which counts Estee Lauder among its entities, has appreciated by 1%. Over the past three months, the company's shares have seen an increase of 36.3% versus the S&P 500's 11% increase. The sector overall has witnessed an increase of 1.1% over the same period.


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