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Did you analyze how Estee Lauder (EL) fared in its international operations for the quarter ending March 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 international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.
While analyzing EL's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor.
For the quarter, the company's total revenue amounted to $3.55 billion, experiencing a decline of 9.9% year over year. Next, we'll explore the breakdown of EL's international revenue to understand the importance of its overseas business operations.
A Closer Look at EL's Revenue Streams Abroad
Europe the Middle East & Africa accounted for 38.25% of the company's total revenue during the quarter, translating to $1.36 billion. Revenues from this region represented a surprise of -2.91%, with Wall Street analysts collectively expecting $1.4 billion. When compared to the preceding quarter and the same quarter in the previous year, Europe the Middle East & Africa contributed $1.49 billion (37.31%) and $1.65 billion (41.80%) to the total revenue, respectively.
Of the total revenue, $1.14 billion came from Asia/Pacific during the last fiscal quarter, accounting for 32.11%. This represented a surprise of +11.82% as analysts had expected the region to contribute $1.02 billion to the total revenue. In comparison, the region contributed $1.29 billion, or 32.14%, and $1.18 billion, or 29.85%, to total revenue in the previous and year-ago quarters, respectively.
Revenue Forecasts for the International Markets
Wall Street analysts expect Estee Lauder to report a total revenue of $3.39 billion in the current fiscal quarter, which suggests a decline of 12.4% from the prior-year quarter. Revenue shares from Europe the Middle East & Africa and Asia/Pacific are predicted to be 39% and 32.8%, corresponding to amounts of $1.32 billion and $1.11 billion, respectively.