Categories Earnings, LATEST, Other Industries

Skincare sales boost Estee Lauder’s Q1 results; stock jumps 7%

Shares of Estee Lauder Companies (EL) rose sharply in the pre-market Wednesday after the cosmetics manufacturer reported double-digit growth in first-quarter earnings, helped mainly by strong demand for its skincare products and continuing overseas expansion, especially in China. The results came in above Wall Street estimates.

Estee Lauder first quarter 2019 Earnings Infographic
The Estee Lauder Companies Q1 2019 Earnings Infographic

Adjusted earnings, excluding special items, grew 22% year-on-year to $1.47 per share, which was above the consensus estimate. Reported net income increased 17% to $500 million or $1.34 per share in the first quarter from $427 million or $ 1.14 per share last year.

Driving the profit growth, net sales rose by 8% to $3.52 billion, with all the leading product categories and channels registering growth. However, analysts had forecast a slower gain. With a 17% increase, skincare continued to be the main growth driver, followed by makeup products that rose 2%. While the overseas market witnessed stronger demand, sales in the US declined.

With a 17% increase, skincare continued to be the main growth driver, followed by makeup products that rose 2%

“Our creative innovations and high-quality products resonated strongly. We attracted new consumers and increased engagement with existing ones through successful digital advertising and influencer activities,” said Estee Lauder CEO Fabrizio Freda.

Anticipating positive consumer demand across all markets, the management sees sales growing between 4% and 5% in the second quarter when earnings are expected to be in the range of $1.37 per share to $1.41 per share. The outlook for adjusted earnings per share is between $1.47 and $1.50.

In the whole of 2019, earnings and adjusted earnings are forecast to be in the range of $4.40-$4.53 per share and $4.73-$4.82 shares respectively. Full-year revenue is estimated to grow between 4% and 5%. The company sees a modest drop in its China sales owing to the ongoing trade issues.

Estee stock gained about 7% following Wednesday’s earnings announcement, after closing the last trading session sharply higher.


Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

Tyson Foods (TSN) Q1 2023 Earnings: Key financials and quarterly highlights

Tyson Foods Inc. (NYSE: TSN) reported first quarter 2023 earnings results today. Sales rose 2.5% year-over-year to $13.2 billion. Net income attributable to Tyson was $316 million, or $0.88 per

After weak start to 2023, Apple (AAPL) sees some bright spots

Apple Inc. (NASDAQ: AAPL) this week reported its first revenue decline in more than three years, even as the high inflation continues to squeeze customers’ spending power. Sales of the

Earnings: Qualcomm (QCOM) Q1 profit falls on lower revenues

Chipmaker Qualcomm, Inc. (NASDAQ: QCOM) has reported lower earnings and revenues for the first quarter of 2023. The company also provided guidance for the second quarter of 2023. At $9.5

Add Comment
Viewing Highlight