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Estee Lauder's quarterly sales rise 4.8%
[BENGALURU] Cosmetics maker Estee Lauder Cos Inc's quarterly sales jumped 4.8 per cent, 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 per cent to US$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 US$93.5 million, or 25 cents per share, in the quarter, from US$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 US$2.65 billion from US$2.52 billion.
The company said it expected fiscal 2017 net sales to grow between 6-7 per cent, while adjusted profit is projected to be between US$3.38-US$3.44 per share.
Analysts on average were expecting profit of US$3.16 per share, according to Thomson Reuters I/B/E/S.
The company also said it expects to incur restructuring charges of about US$80 million-US$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.