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Estée Lauder Fiscal 4Q Profit Jumps 84 Percent

Source: Estee Lauder
By
  • Associated Press

NEW YORK, United States — Estée Lauder's fourth-quarter net income jumped 84 percent, as revenue growth in all geographic regions and several product categories buoyed the makeup and skin care company.

The New York company's performance topped analyst earnings expectations, and its shares climbed Thursday morning before markets opened.

Estée Lauder Cos. Inc. earned $94 million, or 24 cents per share, during the three-month period that ended June 30. That compares to net income of $51.2 million, or 13 cents per share, in last year's period. Revenue climbed 7 percent to $2.41 billion.

Earnings totaled 24 cents per share, excluding returns and charges.

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Analysts surveyed by FactSet expected, on average, earnings of 21 cents per share on $2.41 billion in revenue.

Estée Lauder also makes fragrance and hair care products. It owns its namesake brand as well as Aveda, Clinique and La Mer.

The company saw mid-single-digit sales gains in the United States, and bigger local currency increases in several European countries and travel retail. It also said strong increases in Australia, Hong Kong, China and Japan helped Asia/Pacific growth.

Estée Lauder also booked a smaller total of $4.5 million in returns and charges tied to restructuring activities in this year's quarter, compared to $24.2 million last year.

For fiscal 2013, the company earned $1.02 billion, or $2.58 per share, on $10.18 billion in revenue.

For the new fiscal year, Estée Lauder expects to earn between $2.74 and $2.87 per share, while analysts forecast, on average, earnings of $2.95 per share.

In the fiscal first quarter, the company forecasts earnings of between 67 cents and 71 cents. Analysts expect 91 cents.

Estée Lauder shares rose 3.3 percent, or $2.12, to $67.25 in pre-market trading. The stock has ranged between $56.04 and $72.70 over the past year.

Copyright (2013) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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