Estee Lauder shares rise on earnings beat, record net sales

By EarningsFOXBusiness

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.

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The company also raised its annual forecast for profit and sales on higher demand for luxury skincare products.

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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.

TickerSecurityLastChange%Chg
ELESTEE LAUDER176.88-1.07-0.60%

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.