Feb 2, 2018
Estee Lauder ups 2018 adjusted profit view as millennial brands shine
Feb 2, 2018
Estee Lauder Cos Inc reported higher-than-expected quarterly profit and sales on Friday on strong demand for Too Faced and Becca products and customisable gifts, and the company raised its 2018 full-year adjusted earnings per share forecast.
However, net income fell to $123 million, or 33 cents per share, in the second quarter ended Dec. 31, from $428 million, or $1.15 per share, a year earlier.
The company incurred a one-time tax charge of $394 million following the recently passed U.S. tax bill.
The cosmetics maker raised its 2018 full-year adjusted profit forecast to $4.27-$4.32 per share, thanks to its robust retail travel segment, which includes sales in duty-free stores and tourist department stores like Harrods, House of Fraser and Le Bon Marche.
It had earlier expected adjusted profit of $4.04-$4.12 per share.
Revenue was boosted by the acquisition of Too Faced and Becca Cosmetics, which added about 2 percentage points to sales growth.
Excluding certain items, the company earned $1.52 per share, beating analysts' average estimate of $1.44 cents per share, according to Thomson Reuters I/B/E/S.
Sales rose 16.7 percent to $3.74 billion, beating analysts' estimate of $3.68 billion.
Shares of the New York City-based company rose 1.1 percent to $136 before the bell on Friday.
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