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Press Release: The Estée Lauder Companies Reports -6-

· 02/05/2021 06:45
Returns Sales Operating Expenses Total Tax EPS ------------ ------- ----------------------------------- ----- ------- ----------- (In millions, except per Restructuring Other Charges/ share data) Charges Adjustments -------------- ---- ----- --- ------------------ --------------- --- ---- Leading Beauty Forward $ -- $ 5 $ (10) $ 5 $ -- $-- $ -- PCBA Program -- -- 46 -- 46 33 .09 Changes in fair value of contingent consideration -- -- -- (2) (2) (2) (.01) Goodwill and other intangible asset impairments -- -- -- 81 81 63 .17 -------------- ----------- ------- ---------- ------ ------- ------ ---- --- -------- Total $ -- $ 5 $ 36 $ 84 $125 $94 $ .25 -------------- ---- ------ --- --- ----- ------ --- ------ --- ---- Three Months Ended December 31, 2019 ----------------------------------------------------------------------------------- Sales Cost of After Diluted Returns Sales Operating Expenses Total Tax EPS ------------ ------- --------------------------------- ----- ----- ----------- (In millions, except per Restructuring Other Charges/ share data) Charges Adjustments -------------- ---- ----- --- ---------------- --------------- --- --- --- --- Leading Beauty Forward $ -- $ 6 $ -- $ 7 $ 13 $ 10 $ .03 Changes in fair value of contingent consideration -- -- -- (7) (7) (6) (.02) Goodwill and other intangible asset impairments -- -- -- 777 777 663 1.81 Other income -- -- -- (576) (576) (450) (1.23) -------------- ----------- ------- ---------------- -------- ---- ---- ---- -------- Total $ -- $ 6 $ -- $ 201 $207 $217 $ .59 -------------- ---- ------ --- ------ -------- ---- ----- --- --- --- --- Six Months Ended December 31, 2019 ----------------------------------------------------------------------------------- Sales Cost of After Diluted Returns Sales Operating Expenses Total Tax EPS ------------ ------- --------------------------------- ----- ----- ----------- (In millions, except per Restructuring Other Charges/ share data) Charges Adjustments -------------- ---- ----- --- ---------------- --------------- --- --- --- --- Leading Beauty Forward $ -- $ 8 $ 1 $ 29 $ 38 $ 31 $ .09 Changes in fair value of contingent consideration -- -- -- (7) (7) (6) (.02) Goodwill and other intangible asset impairments -- -- -- 777 777 663 1.80 Other income -- -- -- (576) (576) (450) (1.22) -------------- ----------- ------- ---------------- -------- ---- ---- ---- -------- Total $ -- $ 8 $ 1 $ 223 $232 $238 $ .65 -------------- ---- ------ --- ------ -------- ---- ----- --- --- --- --- Results by Product Category (Unaudited) Six Months Ended December 31 ---------------------------------------------------------------------- Operating Percentage Net Sales Percentage Change Income (Loss) Change -------------- ---------------------- ---------------- ------------ Reported Constant Reported ($ in millions) 2020 2019 Basis Currency 2020 2019 Basis ---------------- ------ ------ ---------- ---------- ------- ------- ------------ Skin Care $4,854 $4,047 20% 18% $1,649 $1,404 17% Makeup 2,225 3,103 (28) (29) (43) (507) 92 Fragrance 1,024 1,043 (2) (3) 201 163 23 Hair Care 290 298 (3) (3) 7 12 (42) Other 22 28 (21) (25) -- 6 (100) ---------------- ------ ------ ---- --- ---- --- ------ ------ ----- ---- Subtotal 8,415 8,519 (1) (3) 1,814 1,078 68 ---------------- ------ ------ ---- --- ---- --- ------ ------ ----- ----- Charges associated with restructuring and other activities -- -- (46) (38) ---------------- ------ ------ ---------- ---------- ------ ------ ------------ Total $8,415 $8,519 (1)% (3)% $1,768 $1,040 70% ---------------- ----- ----- ---- ---- ----- ----- ----- ---- Results by Geographic Region (Unaudited) Six Months Ended December 31 ---------------------------------------------------------------- ---- Operating Percentage Net Sales Percentage Change Income (Loss) Change -------------- ---------------------- ---------------- ------------ Reported Constant Reported ($ in millions) 2020 2019 Basis Currency 2020 2019 Basis ---------------- ------ ------ ---------- ---------- ------- ------- ------------ The Americas $1,921 $2,386 (19)% (18)% $ 101 $ (354) 100 +% Europe, the Middle East & Africa 3,570 3,756 (5) (6) 1,068 882 21 Asia/Pacific 2,924 2,377 23 18 645 550 17 ---------------- ------ ------ ---- ---- ---- ---- ------ ------ ------ ---- Subtotal 8,415 8,519 (1) (3) 1,814 1,078 68 ---------------- ------ ------ ---- --- ---- --- ------ ------ ------ ---- Charges associated with restructuring and other activities -- -- (46) (38) ---------------- ------ ------ ---------- ---------- ------ ------ ------ ---- Total $8,415 $8,519 (1)% (3)% $1,768 $1,040 70% ---------------- ----- ----- ---- ---- ----- ----- ------ ---

This earnings release includes some non-GAAP financial measures relating to charges associated with restructuring and other activities, goodwill and other intangible asset impairments, the changes in the fair value of contingent consideration and other income. The following is a reconciliation between the non-GAAP financial measures and the most directly comparable GAAP measures for certain consolidated statements of earnings accounts before and after these items. The Company uses certain non-GAAP financial measures, among other financial measures, to evaluate its operating performance, which represent the way the Company conducts and views its business. Management believes that excluding certain items that are not comparable from period to period, or do not reflect the Company's underlying ongoing business, provides transparency for such items and helps investors and others compare and analyze operating performance from period to period. In the future, the Company expects to incur charges or adjustments similar in nature to those presented below; however, the impact to the Company's results in a given period may be highly variable and difficult to predict. Our non-GAAP financial measures may not be comparable to similarly titled measures used by, or determined in a manner consistent with, other companies. While the Company considers the non-GAAP measures useful in analyzing its results, they are not intended to replace, or act as a substitute for, any presentation included in the consolidated financial statements prepared in conformity with GAAP.

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February 05, 2021 06:45 ET (11:45 GMT)