Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
What’s happening: Shares of The Estée Lauder Companies moved lower on Monday, after the company reported results for its fiscal fourth quarter.
What happened: The beauty conglomerate reported better-than-expected sales and earnings for its fourth quarter.
However, Estée Lauder issued lower guidance for the full year, which exerted pressure on its stock.
How were the results: The New York-based company reported single-digit growth in sales for its fourth quarter on Monday.
Why it matters: The company managed to top market estimates for the latest quarter amid higher demand for its skincare products.
The company’s organic net sales grew by 8% year-over-year, driven by gains across all product categories, with skincare among the top performers.
Organic net sales from Skin Care grew by 15%, Makeup sales climbed 1%, Fragrance sales rose 1% and Hair Care sales grew 2%.
Organic net sales in the Americas fell 5% in the fourth quarter, with sales in Asia-Pacific contracted by 4%. Sales in Europe, the Middle East and Africa surged 32%.
Estee Lauder posted an operating loss of $233 million for the quarter, versus a year-ago loss of $5 million.
The company announced plans to pay a quarterly dividend of 66 cents per share and announced the retirement of President and CEO Fabrizio Freda at the end of fiscal 25.
“For fiscal 2025, we anticipate continued declines in the prestige beauty segment in China, mainly reflecting persistent weak sentiment among Chinese consumers. In the rest of our business, we are planning to deliver improved performance across both developed and emerging markets,” CEO Fabrizio Freda said.
Management guided to adjusted earnings of $2.75 to $2.95 per share for fiscal 2025, significantly below market estimates of $4.02 per share. They also projected first-quarter adjusted earnings of 2 cents to 10 cents per share, versus expectations of 66 cents per share.
How were the results: Estée Lauder’s shares fell 2.2% to close at $92.85 on Monday, following the release of quarterly results. The stock has lost around 6% over the past month.
What to watch: Investors will continue monitoring overall inflation levels, which could weigh on the demand for beauty products.
Context: The CAD/USD forex pair rose on Monday amid weakness in the US dollar.
Details: The Bank of Canada is projected to slash interest rates at its upcoming meeting in September, in case inflation continues to ease. Statistics Canada will release data on consumer prices today.
Canada’s inflation rate fell to 2.7% year-on-year in June, amid a decline in gasoline prices.
Weakness in the US dollar lent support to the CAD/USD forex pair on Monday. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell around 0.6% to 101.89.
A decline in the price of crude oil, one of Canada’s major exports, limited the overall gains for the loonie. WTI crude oil futures fell $2.28 to close at $74.37 per barrel during Monday’s session.
The CAD/USD forex pair rose to 1.3633 on Monday. The S&P/TSX Composite Index added 0.27% to close at 23,116.39, recording gains for the eighth consecutive session.
What to watch: Investors await the release of inflation data from Canada today. The annual inflation rate in Canada, which slowed to 2.7% in June from 2.9% in the prior month, is expected to ease further to 2.5% in July. However, consumer prices are expected to rise 0.4% month-over-month in July, following a 0.1% decline in June.
Other Markets: European indices closed higher on Monday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 Index up by 0.55%, 0,54%, 0.70% and 0.61%, respectively.
Indian Prime Minister Narendra Modi is scheduled to visit Ukraine to meet President Volodymyr Zelenskyy on Friday. The news sent the RUB/USD pair lower in forex trading this morning.
The People’s Bank of China kept the key lending rates unchanged at the August fixing, in-line with market estimates, which lent support to the CNY/USD forex pair.
New Zealand’s trade deficit narrowed to $0.963 billion in July, from $1.174 billion recorded in the year-ago month, which sent the NZD/USD pair higher in forex trading this morning.
Chile recorded a current account gap of $1,817 million in the second quarter, compared to a year-ago gap of $3,457 million. However, the primary income shortfall widened to $5,260 million, from $4,227 million in the year-ago quarter, exerting pressure on the CLP/USD forex pair.
Morocco’s annual inflation rate eased to 1.3% in July, from 1.8% in the prior month, sending the MAD/USD pair higher in forex trading this morning.
Germany’s producer prices, South Africa’s leading business cycle indicator, Eurozone’s current account, inflation rate and construction output, Italy’s current account, Turkey’s government debt and Central Bank of Turkey’s interest rate decision, Mexico’s retail sales, US Redbook index and API crude oil stocks change, Spain’s consumer confidence, as well as Argentina’s balance of trade.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
