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By
Reuters
Published
Nov 2, 2020
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Estee Lauder tops estimates on China demand, online boost

By
Reuters
Published
Nov 2, 2020

Estee Lauder Cos Inc beat analysts' estimates for quarterly sales and profit on Monday,
benefiting from strong Chinese demand and a surge in online orders for its skincare products.


Photo: Estee Lauder - Estée Lauder



The M.A.C brand owner has been ramping up investments in its online business and has seen growth in demand for its skincare products as customers confined to their homes opted for serums and moisturizers instead of traditional make-up items.

Estee has also benefited from improving sales at duty-free shops in China as domestic travel picked up in the world’s second-largest economy, as well as collaborations with Asian celebrities, including K-pop star Lalisa Manobal.

Sales in the company’s Asia-Pacific market increased 9% to $1.15 billion, also helped by China’s move to raise the annual tax-free shopping limit for tourists in the Hainan province.

Excluding one-time items, the company reported a profit of $1.44 per share. Analysts were expecting a profit of 90 cents per share.

Net sales fell 9% to $3.56 billion but were above expectations of $3.46 billion, according to Refinitiv data.

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