Cosmetics Maker Estee Lauder's Adjusted Profit Beats Estimates

By MarketsFOXBusiness

Estee Lauder (NYSE:EL), the owner of beauty brands including MAC and Bobbi Brown, beat third-quarter earnings expectations on Friday, saying net income rose 19% to $213 million.

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Sales came in at $2.55 billion, an 11%  increase from the prior year. Analysts were expecting $2.49 billion. Excluding special items, per-share earnings came in at 64 cents.

“These results were driven by the broad global demand for our diverse prestige beauty brands, the strength of our emerging markets, accelerated growth in certain developed markets and solid progress in skin care,” said CEO Fabrizio Freda, in a statement.

The company saw a 12% revenue increase in its skin-care lines, accounting for $1.13 billion in sales. Products from its Clinique and La Mer lines showed strong performance.

Makeup saw a 10% revenue increase, coming in at $1.02 billion. The Estee Lauder and Smashbox brands contributed to the growth.

Estee Lauder’s fragrance business saw 16% growth, bringing in $270.5 million in revenue. Luxury brands Tom Ford and Jo Malone showed strong sales growth.

Sales improved globally, with Asia/Pacific seeing a 14% rise in revenue. The Americas is its largest market, seeing an 8% growth in its $1.07 billion in sales.

Estee Lauder shares are up 3% Friday at midday, trading around $74.31.