Estee Lauder raises outlook on strong profits

By Simon Pitman

- Last updated on GMT

Profits are up at Estee Lauder, prompting the company to increase
its full-year outlook, driven by strong sales growth in all
categories together with the benefits of cost saving initiatives.

The company reported that for its second quarter, sales rose 12 per cent to reach $1.99bn, boosted by a weak dollar currency. Excluding the impact of foreign currency, net sales rose 9 per cent.

Net earnings from continuing operations were up 38.6 per cent, to reach $208.5m, compared to $150.4m for the corresponding quarter in 2005.

The results prompted the company to up its sales and earnings potential for the fiscal 2007, with net sales expected to increase 6 - 7 per cent, or $6.87bn - $6.891bn.

In light of the most recent results, Thomson Financial said that having polled a number of analysts, it believed revenues should come in at around $6.87bn for the 2007 financial year.

"Our strong earnings and cash flow give us the opportunity to accelerate and increase our investments in our business, enabling us to grow for the long term,"​ said William Lauder, company CEO.

"Taking a shorter term perspective, the solid first half and our confidence in our business for the balance of the fiscal year permits to raise our full year earnings."

In its skin care segment, the company reported a strong start for launches that included Estee Lauder's Advanced Night Repair treatment, as well as Repairwear Lift and All About Eyes Rich, from Clinique.

Makeup saw strong sales from existing product lines that included Estee Lauder's Double Wear Foundation and Pure Color Eyeshadow, while strong new launches included Resilience Lift Extreme Ultra Firming Makeup.

On the fragrance front, sales jumped significantly, especially when compared to the 11 per cent fall in sales in the same period in 2005. Strong launches included DKNY Red Delicious and Estee Lauder's Pure White Linen, while the company also highlighted disappointing sales from True Star and True Star Men.

On the hair care front the company highlighted the continued strength of the Aveda and Bumble and bumble brands, with Aveda's Be Curly Shampoo and Conditioner proving particularly popular.

On a geographical basis, the biggest climb in sales came in the Asia Pacific region, where the company achieved a quarterly turnover of $285.4m on a reported basis, up 15.9 per cent on the previous year. This figure was boosted by strong double digit growth in China, Singapore, Hong Kong, Australia and Taiwan.

Europe, the Middle East & Africa saw reported sales jump 15.6 per cent to reach $761.7m, where the UK led the way. In the Americas, sales were up 7.4 per cent at $944.0, where strong growth in Canada, Mexico and Latin America was countered by falling sales of core brands in the US.

Related news

Show more

Related products

show more

Discover Peptan for Beauty & Diverse Skins

Discover Peptan for Beauty & Diverse Skins

Content provided by Rousselot | 05-Sep-2024 | Product Brochure

As beauty from within solutions soar in popularity, manufacturers need to be able to serve everyone, no matter their ethnicity or skin type.

FucoSkin®: Ocean-Inspired Sustainable Beauty

FucoSkin®: Ocean-Inspired Sustainable Beauty

Content provided by Hi-Q Marine Biotech International Ltd | 28-Aug-2024 | White Paper

FucoSkin® is a fucoidan-rich extract derived from the brown seaweed Laminaria Japonica, known for its excellent anti-aging and photoprotective benefits....

See our latest innovations in personal care

See our latest innovations in personal care

Content provided by Covation Bio™ PDO | 02-Apr-2024 | White Paper

At CovationBio PDO, we’re helping the world achieve its sustainability goals by enabling better performing, better-for-the planet products across a range...

Collagen Reimagined, Discover Biodesigned Type XXI

Collagen Reimagined, Discover Biodesigned Type XXI

Content provided by Geltor | 20-Mar-2024 | Product Brochure

Collagen is the body’s most abundant protein and a mainstream ingredient for beauty. Type XXI collagen transcends a common protein into a powerful bioactive

Related suppliers

Follow us

Products

View more

Webinars

Podcast