Estée Lauder reports strong set of 2012 Q2 results

Estée Lauder Companies Inc. has announced a positive set of second quarter results for 2012, with net sales totalling $2.93bn, up 7% on last year’s $2.74bn.

Net earnings for the quarter rose 13% to $447.5m, compared with $396.7m last year, while diluted net earnings per common share rose 13% to $1.13, compared with $1.00 in 2011. The results were delivered against a 10% local currency sales increase in Q2 2011 and continued softness in certain markets, particularly Southern Europe and Korea.

As Estée Lauder expected, growth in the global prestige beauty industry did slow from the prior year, however the company’s performance was broad based, generating local currency sales gains in each of its geographic regions and major product categories; sales growth was solid in the US and certain developed countries, and strong overall in emerging markets.

Skin care continued to be a priority for the company and skin care sales growth was strong, particularly in view of the 13% growth reported in the prior year quarter. Sales here benefited from the recent launches of Perfectionist CP+R, Advanced Time Zone, Advanced Night Recovery Eye Serum Infusion and the Optimizer line of products, as well as higher sales of Advanced Night Repair Synchronized Recovery Complex.

Fabrizio Freda, President and Chief Executive Officer, said: “Our performance this quarter reflected the global appeal of our brands in all regions. These results demonstrate our ability to continue to grow, on top of the double-digit trends we generated in the prior year, even in the face of macro-economic headwinds and challenges in certain international countries. Organic sales growth for the quarter was in line with our expectations, while earnings per share exceeded our forecast.”