×
89 422
Fashion Jobs
AESOP
Part Time Retail Consultant | Seaport
Permanent · Boston
KOHLS
Distribution Center Operations Manager
Permanent · Patterson
PAUL SMITH
Sales Supervisor- Wooster Street
Permanent · NEW YORK
URBN
Urbn Urban Outfitters Inc. Inventory Control/Quality Audit
Permanent · RENO
H&M
Senior Director, Sales Component Engineering
Permanent · ATLANTA
H&M
Part Time Cleaning Technician
Permanent · NEW YORK
PRIMARK
Visual Merchandising Manager- Downtown Crossing
Permanent · BOSTON
PRIMARK
Visual Merchandising Manager-Concord Mills
Permanent · CONCORD
PRIMARK
Visual Merchandising Manager - Crossgates
Permanent · ALBANY
PRIMARK
Visual Merchandise Manager- Jersey Gardens
Permanent · ELIZABETH
PRIMARK
Visual Merchandise Manager- Green Acres
Permanent · NEW YORK
PRIMARK
Visual Merchandise Manager- Walden
Permanent · BUFFALO
PRIMARK
Visual Merchandise Manager- Woodfield Mall- New Store
Permanent · SCHAUMBURG
SACKS
Vendor Compliance Analyst
Permanent · WILKES-BARRE
SACK OFF 5TH
Asset Protection Investigator
Permanent · BOCA RATON
UNDER ARMOUR
Stock Lead, ft
Permanent · WOODSTOCK
UNDER ARMOUR
sr. Manager Inventory Control And Quality Assurance
Permanent · SPARROWS POINT
BLOOMINGDALE'S
Asset Protection Outlet Supervisor, Full Time - Mission Valley
Permanent · SAN DIEGO
BLOOMINGDALE'S
Asset Protection Visual Security Officer, Part Time - Palm Beach Garden
Permanent · Palm Beach Gardens
BLOOMINGDALE'S
Asset Protection Outlet Detective, Full Time - Upper West Side
Permanent · New York
MACY'S
Asset Protection Security Guard, Mall of Georgia - Part Time
Permanent · Buford
MACY'S
Brand Sales Specialist - Polo, Miami International - Full Time
Permanent · Miami
By
Reuters
Published
Nov 1, 2017
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Estée Lauder's bright holiday-quarter forecast boosts shares

By
Reuters
Published
Nov 1, 2017

Estée Lauder’s stock hit a record high after the cosmetics maker forecast holiday-quarter sales ahead of market expectations on Wednesday, banking on demand for its recently acquired makeup brands that are popular with millennials.


Estée Lauder



The strong forecast followed better-than-expected sales and profit in the first quarter ended September. Lauder, the second-largest cosmetics company in the world, has been growing through acquisitions such as those of Too Faced and BECCA Cosmetics, aimed at attracting millennials.

The 72-year old company has also signed up social media influencers and celebrities such as Kendall Jenner, and popular YouTube vloggers to promote its products.

The company expects second-quarter sales of $3.63 billion to $3.69 billion, ahead of analysts’ average estimate of $3.56 billion. Sales in the first quarter rose 14.2 percent to $3.27 billion. The shares jumped nearly 12 percent to $124.75 in morning trading on Wednesday.

Too Faced and BECCA Cosmetics added about 4 percentage points to sales growth in the first quarter, it said.

These acquisitions, and demand from Hong Kong, France and China contributed to the company’s first-quarter performance, RBC Capital Markets analyst Nik Modi said in a pre-earnings client note.

Business for makeup companies such as Lauder is booming in Asia Pacific, especially China, as more people travel and visit duty-free stores at airports and beauty retailers such as ULTA Beauty.

Sales in the company’s Europe, Middle East and Africa (EMEA) business surged 20 percent in the first quarter. Asia Pacific sales climbed 16 percent.

It expects its Asia business to benefit from the recent launch of MAC cosmetics on Lazada, an online platform owned by Alibaba, the company said on a post-earnings call.

“We plan to invest more in China and other emerging markets this fiscal year to further awareness and demand for our brands,” Chief Executive Fabrizio Freda said on the call. Lauder’s travel-retail business is expected to remain robust this year, he said.

Sales in the makeup business rose about 18 percent to $1.37 billion. The business accounts for nearly half of the company’s total sales, which also includes revenue from skincare products and perfumes.

Excluding certain items, it earned $1.21 per share, beating analysts’ average estimate of 97 cents per share, according to Thomson Reuters I/B/E/S.

For fiscal year 2018, the firm expects an adjusted profit of $4.04 to $4.12 per share. It had previously forecast an adjusted profit of $3.87 to $3.94 per share.
 

© Thomson Reuters 2022 All rights reserved.