Estee Lauder sees 'strong consumer demand for high-quality products' in FY20
"The company continues to see strong consumer demand for its high-quality products and for the fiscal year expects to grow ahead of the industry and to continue building global share. The company expects global prestige beauty to grow approximately 6-7% during the fiscal year, assuming no additional geopolitical risk materializes. However, the company is mindful of risks related to social, economic and political issues, including geopolitical tensions, regulatory matters, global security issues, currency volatility and economic challenges that could affect consumer spending in certain countries and travel corridors. Given this environment, the company has reflected the following risks in its outlook: Continued softness of brick & mortar retail in the United States and United Kingdom impacting overall prestige beauty growth, especially in the makeup category. Costs associated with the anticipated Brexit in the United Kingdom. Escalation of trade tensions between the U.S. and China, increase of tariffs in China and the gradual moderation of net sales growth in China and travel retail from recent levels. The company has not experienced this moderation to date and continues to be optimistic about the strength of long-term growth in those areas. Protests in key shopping areas in Hong Kong." In addition, there will be no adjustments relating to ASC 606 as fiscal 2020 will be under the same basis of revenue recognition accounting as fiscal 2019."