NEW YORK, United States — Estée Lauder Companies climbed as much as 4.7 percent in early trading after its rapid expansion in China and the acquisition of millennial-friendly brands helped brighten its outlook.
The cosmetics giant boosted its sales and profit forecasts for the year following better-than-expected growth in the fiscal first quarter. Earnings amounted to $1.21 a share in that period, excluding some items, handily beating the 97 cents estimated by analysts.
The results added momentum to a dramatic rally this year for Estée Lauder, which has seen sales surge in Asia and at duty-free shops — a category known as travel retail. It also acquired Too Faced and Becca Cosmetics last year to appeal to younger consumers, a move that now seems to be paying off.
“We benefited from a continued acceleration in China, Hong Kong, travel retail and global online,” chief executive Fabrizio Freda said in a statement.
Estée Lauder rose as high as $117.05 in premarket trading after the results were released. The stock had already gained 46 percent this year through Tuesday’s close.
The company now expects earnings of $4.04 to $4.12 a share this year, excluding certain items. Analysts had estimated $3.97. Sales will grow 10 percent to 11 percent.
Freda also said the company saw improvement at some US high-end department stores, a beleaguered industry.
By Stephanie Wong; editor: Nick Turner.