In a Recent Press Release, Estee Lauder Co

question 47

Essay

In a recent press release, Estee Lauder Co. reported "a fiscal fourth-quarter loss due to a restructuring charge but said it expects to see earnings growth in its fiscal second through fourth quarters." The New York skin care and cosmetics company reported a net loss of $25.4 million, or 13 cents a share, for the quarter ended June 30, compared with net income of $20.4 million, or six cents a share, a year earlier. Excluding the restructuring charge of $76.9 million, or 32 cents a share, the company said profit would have been $51.5 million, or 19 cents a share. Discuss how Estee Lauder's press release relates to its earnings quality.

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Definitions:

Formative Years

A period of a person's life or an institution's existence that is crucial for development and shaping its future.

Militarily Weak

A descriptive term for a nation or entity that possesses limited military strength and capabilities compared to potential adversaries.

IRA

Individual Retirement Account; a financial tool in the United States for retirement savings with various tax advantages.

ETA

Estimated Time of Arrival; the predicted time when a vehicle, individual, or shipment is expected to reach a particular destination.