Estee Lauder Cos Inc’s quarterly sales jumped 4.8 percent
Beauty giant Estee Lauder Cos Inc‘s quarterly sales jumped 4.8 percent, its fourth consecutive rise, helped by higher demand for its makeup brands including M.A.C, Smashbox and Bobbi Brown.
The company’s makeup unit’s sales rose 10.2 percent to $1.13 billion, contributing about 42.6 percent to total sales in the fourth quarter ended June 30.
Estee Lauder has been targeting younger customers with its Jo Malone and Bobbi Brown brands, to counter slowing demand for “heritage” brands Estee Lauder and Clinique in North America, its biggest market.
Net income attributable to the company fell to $93.5 million, or 25 cents per share, in the quarter, from $153 million, or 40 cents per share, a year earlier. Net income was hurt by restructuring and other charges.
Excluding items, the company earned 43 cents per share. Net sales rose to $2.65 billion from $2.52 billion.
The company said it expected fiscal 2017 net sales to grow between 6-7 percent, while adjusted profit is projected to be between $3.38-$3.44 per share. Analysts on average were expecting profit of $3.16 per share, according to Thomson Reuters I/B/E/S.
The company also said it expects to incur restructuring charges of about $80 million-$100 million in fiscal 2017, related to its Leading Beauty Forward strategy.
As part of its Leading Beauty Forward strategy, the company had earlier approved restructuring initiatives to exit businesses in certain markets and channels of distribution while also reducing its workforce globally.