Estee Lauder shares rise on earnings beat, record net sales
Athens, Greece - January 6, 2018: Duty free shops at Eleftherios Venizelos airport in Athens, Greece
Estée Lauder reported better-than-expected quarterly profit and revenue on Tuesday, with net sales passing the $4 billion mark for the first time ever.
The company also raised its annual forecast for profit and sales on higher demand for luxury skincare products.
Net income attributable to the company rose four-fold to $573 million, or $1.55 per share, in its second fiscal quarter ended Dec. 31, 2018, from a year earlier, when the company incurred a tax-related charge.
On an adjusted basis, the company earned $1.74 per share, beating estimates of $1.55 percent, according to Refinitiv data.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| EL | THE ESTÉE LAUDER COMPANIES INC. | 138.00 | +1.08 | +0.79% |
Net sales rose 7 percent to $4.01 billion, also topping analysts' average expectation of $3.92 billion, according to IBES data from Refinitiv.
Growth in the Asia-Pacific region, online and travel retail channels helped to fuel a robust quarter, the company said.
"Despite a volatile and challenging backdrop, we are optimistic about our company's long-term outlook," Chief Executive Officer Fabrizio Freda said.
The company now expects adjusted profit for fiscal 2019 to be in the range of $4.92 to $5 per share from a prior forecast of $4.73 and $4.82.
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It also expects adjusted sales to grow between 8 percent and 9 percent. The company had earlier forecast a range of 7 percent to 8 percent.
Sales in the skincare business grew 16 percent in the quarter, while the Asia-Pacific region drew in the biggest growth with 17 percent.