Estee Lauder's profit, sales beat on strong demand for makeup
Estee Lauder on Wednesday reported better-than-expected quarterly sales and profit, helped by demand for makeup from its brands including Tom Ford and Smashbox and revenue from recent acquisitions aimed at attracting younger customers.
The 72-year old company also raised its adjusted profit for fiscal year 2018.
Estee Lauder is trying to change its image to appeal to younger consumers and has started promoting its products through celebrities such as Kylie Jenner, who have a large number of social media followers, and popular YouTubers.
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.
Excluding certain items, Estee earned $1.21 per share, beating analysts` average estimate of 97 cents per share, according to Thomson Reuters I/B/E/S.
Net sales rose to $3.27 billion in the quarter ended Sept. 30, from $2.87 billion a year ago, and topped analysts` average estimate of $3.17 billion.
For the fiscal year 2018, Estee 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.
Shares of the New York City-based company rose 1.5 percent to $113.51 in light premarket trading on Wednesday.
The company also raised its quarterly dividend by 12 percent to 38 cents per share.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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