American cosmetics company Estée Lauder has reported net sales of $3.52bn in the first quarter (Q1) of fiscal 2024 (FY24), down by 10% from $3.93bn in the same period in FY23.

The company attributed the decline to pressures in its Asia travel retail business and incremental headwinds from a lower-than-expected recovery of overall prestige beauty in mainland China.

In the Americas, the company posted sales growth of 6%, driven by strong performance in North America and Latin America.

Net sales of Estée Lauder in Europe, the Middle East and Africa (EMEA) and in the Asia Pacific regions declined 27% and 3% respectively in Q1 FY24.

During the quarter ending 30 September 2023, the company delivered net earnings of $31m, compared with net earnings of $489m in the same quarter of the previous year.

Its diluted net earnings per common share (EPS) was $.09 in Q1 FY24, against $1.35 in Q1 FY23.

Gross profit of Estée Lauder dropped 16% in Q1 FY24, and its gross margin was 69.6%.

Estée Lauder president and chief executive officer Fabrizio Freda stated: “In the context of a quarter which we anticipated to be challenging, we delivered our organic sales outlook and exceeded expectations for profitability.

“Momentum continued in many developed and emerging markets around the world, where our organic sales grew strongly, and we realised prestige beauty share gains. Encouragingly, we returned to growth in the US, with fragrance, makeup and skincare all contributing.

“This performance partially offset the pressures of Asia travel retail and a slower recovery of overall prestige beauty in mainland China.”

In the second quarter of fiscal 2024, Estée Lauder expects net sales to decrease between 11% and 9% against the same period of the previous year.

The retailer anticipates a diluted EPS between $.47 and $.57.

For the full year, it expects net sales between a 2% decrease and an increase of 1% versus the previous year, and projects a diluted EPS between $2.08 and $2.35.