The Estee Lauder Companies reported higher profit and sales in its fiscal first quarter, as the company's turnaround continues to bear fruit.
The owner of beauty brands such as MAC, Smashbox and Jo Malone posted a profit of $233 million, or 64 cents a share, for its three months ended Sept. 30, compared with $47 million, or 13 cents a share, a year earlier.
Stripping out one-time items, earnings were 72 cents a share. Analysts polled by FactSet expected adjusted earnings of 51 cents a share.
Net sales climbed 6.7% to $3.72 billion, topping Wall Street models for $3.65 billion.
Skin care sales rose 4.8% to $1.65 billion, while fragrance sales jumped 19% to $861 million. Makeup sales ticked up 1.8% to $1.05 billion. The increases were partially offset by hair care sales, which ebbed 0.8% to $128 million.
Estee Lauder has spent the past several years working to turn around the business, increasing investments in its consumer-facing operations and expanding into higher-growth sales channels. The beauty conglomerate has also cut costs, in part through layoffs.
"We are bringing more breakthrough innovation to consumers, amplifying the desirability of our brands with bold, high impact campaigns, and building a faster, more agile organization that is converting momentum into stronger financial performance," Chief Executive Stephane de La Faverie said.
Looking ahead, Estee Lauder now expects organic net sales growth to 4% to 5.5% in the coming year, compared with a prior outlook of 3% to 5%.
Adjusted earnings are now projected to come in between $3.20 and $3.45 a share, compared with a previous forecast of $3.10 to $3.35 a share. Analysts are looking for adjusted earnings of $3.32 a share.
Comments