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.
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