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Estée Lauder Extends Streak on Strength of Online, Holiday Sales

Sales surged across most of its brands in the latest quarter, with skincare, makeup and fragrances all posting double-digit gains.
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By
  • Bloomberg

New York, United States — Estée Lauder Cos. rose in early trading after online sales and a push deeper into China helped maintain its growth streak.

The New York-based seller of Clinique and Aveda products saw sales surge across most of its brands in the latest quarter, with skin care, makeup and fragrances all posting double-digit gains. Online sales — an area of increasing importance for cosmetics companies — also rose.

“In the holiday season, our brands achieved outstanding results from their e-commerce businesses, and customisable gift options were significant contributors,” said chief executive Fabrizio Freda in a statement.

Estée Lauder has profited from higher demand for fragrances and premium cosmetics and capitalised on a growing Chinese market, helping it outpace rivals and reward investors. Its acquisition of Millennial-friendly brands and quick adaptation of digital technology to boost online sales have helped sales accelerate for five straight quarters.

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The shares rose as much as 3 percent to $138.55 in early trading. The stock has gained almost 70 percent in the last 12 months.

Excluding some items, profit was $1.52 a share, surpassing the average estimate of $1.44 from analysts. Sales of $3.74 billion also exceeded the estimate of $3.67 billion.

The results sparked more optimistic guidance on revenue and profit for the current fiscal year. Estée Lauder sees sales rising 12.5 percent to 13.5 percent, up from a previous range of 10 percent to 11 percent.

By Jonathan Roeder in Chicago; editors: Nick Turner, Jonathan Roeder, Jessica Brice

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