The Estée Lauder Companies Inc. Declares Quarterly Dividend of $.35 Per Share

Rhea-AI Summary

The Estée Lauder Companies (NYSE: EL) has announced a reduction in its quarterly dividend to $.35 per share from the previous $.66 per share, payable on December 16, 2024, to stockholders of record as of November 29, 2024. The company cited challenges in the prestige beauty landscape, particularly difficulties in forecasting market stabilization in mainland China and Asia travel retail, as reasons for adjusting to a more appropriate payout ratio. This reduction aims to provide greater financial flexibility for incoming leadership to focus on reaccelerating profitable growth.

Positive

• Maintains commitment to dividend payments as part of capital allocation strategy
• Preserves financial flexibility for future growth initiatives
• Demonstrates proactive financial management in response to market challenges

Negative

• 47% reduction in quarterly dividend from $.66 to $.35 per share
• Ongoing market instability in mainland China and Asia travel retail
• Uncertain timing for market recovery and stabilization

Reducing Dividend to a More Appropriate Payout Ratio

NEW YORK--(BUSINESS WIRE)-- The Estée Lauder Companies Inc. (NYSE: EL) declared a quarterly dividend of $.35 per share on its Class A and Class B Common Stock on December 16, 2024 to stockholders of record at the close of business on November 29, 2024, a reduction from its previous quarterly dividend of $.66 per share.

As stated in the Company’s press release announcing the fiscal 2025 first quarter results today, given the complex prestige beauty landscape, including the particular difficulty in forecasting the timing of market stabilization and recovery in mainland China and Asia travel retail, the Company is reducing its dividend to a more appropriate payout ratio. The dividend reduction also affords more financial flexibility for the incoming leadership team to reaccelerate the Company’s profitable growth trajectory. The Company continues to view dividends as an important piece of its capital allocation strategy at an appropriate payout ratio.

The Estée Lauder Companies Inc. is one of the world’s leading manufacturers, marketers and sellers of quality skin care, makeup, fragrance and hair care products, and is a steward of luxury and prestige brands globally. The Company’s products are sold in approximately 150 countries and territories under brand names including: Estée Lauder, Aramis, Clinique, Lab Series, Origins, M·A·C, La Mer, Bobbi Brown Cosmetics, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, TOM FORD, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frédéric Malle, GLAMGLOW, KILIAN PARIS, Too Faced, Dr.Jart+, the DECIEM family of brands, including The Ordinary and NIOD, and BALMAIN Beauty.

Cautionary Note Regarding Forward-Looking Statements

Statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include those in the second paragraph. Although the Company believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, actual results may differ materially from the Company’s expectations. Factors that could cause actual results to differ from expectations include the ability to successfully implement its strategy, including the Company’s profit recovery and growth plan; successfully transition its leadership; and those other factors described in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K. The Company assumes no responsibility to update forward-looking statements made herein or otherwise.

ELC-F

View source version on businesswire.com: https://www.businesswire.com/news/home/20241031884264/en/

Investors: Rainey Mancini

rmancini@estee.com

Media: Jill Marvin

jimarvin@estee.com

Source: The Estée Lauder Companies Inc.

FAQ

What is Estée Lauder's new quarterly dividend amount for 2024?

Estée Lauder (EL) has declared a quarterly dividend of $.35 per share, reduced from the previous $.66 per share.

When will Estée Lauder (EL) pay its next dividend?

Estée Lauder will pay its quarterly dividend on December 16, 2024, to stockholders of record as of November 29, 2024.

Why did Estée Lauder reduce its dividend in 2024?

Estée Lauder reduced its dividend due to challenges in the prestige beauty landscape, particularly in mainland China and Asia travel retail, and to provide more financial flexibility for incoming leadership.

What is the percentage of Estée Lauder's dividend reduction?

Estée Lauder reduced its quarterly dividend by approximately 47%, from $.66 to $.35 per share.