Estee Lauder shares jump as profit forecast exceeds expectations

New York

ESTEE Lauder Cos, the seven-decade-old cosmetics company, is getting a pay-off from its push to acquire hipper brands and expand its e-commerce business.

The shares jumped as much as 8.1 per cent on Friday, the most since November 2015, after the beauty company forecast annual profit that exceeded Wall Street expectations.

Beyond the boost from its new brands, Estee Lauder also cited strength from duty free stores, China and speciality shops such as Ulta Beauty Inc.

The rosier forecast reflects the company's move to acquire smaller brands such as Too Faced and Becca Cosmetics and meet younger shoppers' growing demand for niche products, according to chief executive…