“Our earnings per share in the second quarter grew more than twice the rate of net sales in constant currency, delivering an impressive first-half performance,” said CEO Fabrizio Freda.
“Our strongest growth engines this quarter included the skin care category globally, the Asia/Pacific region, the online and travel retail channels, and most brands, including Estée Lauder, La Mer, M•A•C and our artisanal fragrance brands,” Freda added.
LOOKING AHEAD
Estée Lauder continues to expect robust consumer demand for its products. “We continue to expect global prestige beauty to grow 5% to 6% during the fiscal year,” read the statement by the company that owns M•A•C.
Despite the impact of closing certain department store locations in the United States and the United Kingdom, and costs associated with the upcoming anticipated Brexit in the UK, Estée Lauder looks to outperform the industry.
In the third quarter of fiscal 2019, Estée Lauder sees net sales growing 5-6% year-over-year, including a 5% impact from currency translation and a 2% benefit from the adoption of ASC 606 standards. Excluding these items, net sales is expected to grow 8-9%. Reported diluted net earnings per share is projected to be between $1.17 and $1.20. Excluding restructuring and other charges and adjustments, diluted net earnings is estimated at $1.26-1.28 per share.
For the full year 2019, the company expects to grow 5-9% in net sales, including the impact of external factors. Excluding these items, net sales are forecasted to grow between 8% and 9%. Reported diluted net earnings per share is projected to be between $4.55 and $4.67. Excluding restructuring and other charges and adjustments, diluted net earnings is projected at $4.92-5.00 per share.