default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Estee Lauder Forecasts a Robust Fiscal 2020 After Beating Estimates

The company said its predictions account for geopolitical issues such as Hong Kong protests, Britain's impending exit from the EU and the China-US trade war.
Estée Lauder storefront | Source: Shutterstock
By
  • Reuters

NEW YORK, United States — Estée Lauder Cos Inc. forecast full-year revenue and profit above Wall Street expectations after beating estimates for quarterly earnings on Monday, bolstered by booming demand for its premium skincare products such as La Mer and strength in its Asia-Pacific business.

Shares of the company, which has been investing heavily in its skincare segment as more consumers opt for products like serums, toners and face masks, rose nearly 5 percent in pre-market trading.

Sales in the skincare business, its biggest and most profitable segment, rose 15 percent to $1.59 billion in the fourth quarter, while sales in Asia-Pacific region, which includes China, grew 18 percent.

The company said it expects full-year sales to grow in the range of 7 percent to 8 percent and adjusted profit to be between $5.90 and $5.98 per share in fiscal 2020. Analysts had expected a sales growth of 6.87 percent and profit of $5.81 per share.

The company said its forecast takes into account geopolitical issues such as Hong Kong protests, costs related to Britain's impending exit from the European Union and the escalating trade dispute between the United States and China.

Net earnings attributable to the company fell to $157 million, or 43 cents per share, in the quarter ended June 30, from $186 million, or 49 cents per share, a year earlier

Excluding items, it earned 64 cents per share, beating the average analyst estimate of 53 cents per share.

Net sales rose 9 percent to $3.59 billion, beating expectations of $3.53 billion, according to IBES data from Refinitiv.

By Aditi Sebastian; editor: Arun Koyyur.

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Beauty
Analysis and advice on the fast-evolving beauty business.

The line, Neuraé, is inspired by neuroscientific research and will retail at a lower price point than Sisley’s core luxury offering. It’s the first time the family-owned company has launched a new brand.




News of the luxury house expanding into cosmetics had fashion and beauty lovers buzzing about the latest extension of Hedi Slimane’s expanding universe.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024