Lauder defies expectations with sharp Q2 sales rise
The Estée Lauder Companies reported net earnings of $256.2m for the quarter ended 31 December 2009 on net sales of $2.26bn, an 11% increase on net sales figures for the prior year period.
The Estée Lauder Companies reported net earnings of $256.2m for the quarter ended 31 December 2009 on net sales of $2.26bn, an 11% increase on net sales figures for the prior year period.
Lauder has benefited from better than anticipated sales, driven in part by strong growth in Asia, solid increases from higher margin product launches, higher gains in its travel retail business and holiday season spend in the UK and US, combined with reduced company spend on advertising, merchandising and sampling.
According to the company, strong skin care and make-up sales were slightly mitigated by a decline in its fragrance product category.
“While certain businesses have shown signs of improvement and the economic challenges and some external uncertainties have abated, we remain mindful that they have not completely disappeared,” notes president and ceo Fabrizio Freda. “We continue to examine our business to more closely align our cost structure with expected sales growth and plan to make targeted incremental investments throughout the balance for the fiscal year to support and grow our brands.”
Net sales for the full year are forecasted to grow between 3% and 5% in constant currency.