NEW YORK, United States — Cosmetics maker Estee Lauder Cos Inc reported lower-than-expected quarterly sales, hurt by less demand for Clinique and Estee Lauder skin care products and a stronger dollar.
Shares of Estee Lauder, which also makes M.A.C and Bobbi Brown makeup products, fell 2 percent to $86.85 in premarket trading on Monday.
The company has been focusing on catering to younger customers by offering brands such as Smashbox and Bobbi Brown, as its "heritage" brands Estee Lauder and Clinique lose some shine in North America.
Sales in the company's skin care division fell 16 percent to $1.01 billion in the fourth quarter, the worst fall in at least two years. The division contributed about 40 percent to total sales in the quarter ended June 30.
Net income attributable to Estee Lauder fell to $153.0 million, or 40 cents per share, in the quarter, from $257.7 million, or 66 cents per share, a year earlier.
In the prior-year quarter, retailers advanced sales orders of about $178 million before Estee Lauder upgraded its IT infrastructure.
Excluding items, Estee Lauder earned 40 cents per share, above the average analyst estimate of 34 cents, according to Thomson Reuters I/B/E/S.
The company's revenue fell 7.4 percent to $2.52 billion, missing analysts' estimate of $2.57 billion.
By Yashaswini Swamynathan; editor: Maju Samuel.