Advertise with fastmoving.co.za
 
 

Estée Lauder shares leap on strong profit forecast.
Estée Lauder shares leap on strong profit forecast.

Estée Lauder shares leap on strong profit forecast

FMCG SUPPLIER NEWS

By Vibhuti Sharma and Karina Dsouza - Aug 21st 2017, 14:32

Cosmetics maker Estée Lauder forecast full-year profit ahead of analysts’ estimates and posted higher than expected quarterly results, driven by strong demand for its brands such as MAC, Tom Ford, La Mer and Smashbox. 

Estée Lauder’s shares rose nearly 5% to $103 before the bell on Friday.

The company said it expected full-year net sales to rise between 8% and 9%.

It also said it expected 2018 adjusted profit of $3.87 to $3.94 per share.

Analysts had estimated full-year profit to be $3.79 per share, according to Thomson Reuters.

Sales in the company’s makeup unit, which sells brands that include Tom Ford, Smashbox and La Mer, rose 16% to $1.31bn. The business accounts for more than 44% of total sales.

Net income attributable to Estée Lauder rose to $229m, or 61c per share, in the fourth quarter ended June 30, from $94m, or 25c a share, a year earlier.

Excluding items, the company earned 51c per share, beating analysts’ average estimate of 43c.

The New York City-based company’s net sales rose 9% to $2.89bn. Analysts had, on average, expected $2.85bn.
© BusinessLIVE MMXVII 

Read more about: sales | profit | estee lauder | brands

Related News

Double-digit profit growth for Pick n Pay as turnaround plan pays off
22/10/2019 - 09:12
Pick n Pay has continued to reap the benefits of its turnaround strategy, positing double-digit profit growth in the six months to end-September after an intensive focus on supply costs.

Gearing for growth with online reviews
18/10/2019 - 09:17
Improving online review ratings is a strategic necessity for franchises and multi-location brands as more customers engage with them via online listings – and expect a response.

Pioneer shareholders give nod to PepsiCo deal
16/10/2019 - 08:25
Shareholders of Pioneer Foods, the owner of brands such as Sasko bread and Ceres juices, have voted almost unanimously in favour of delisting the company, after a $1.7bn bid by PepsiCo.

Checkers launches long-awaited rewards programme
15/10/2019 - 12:20
The wait is over - Checkers Xtra Savings is here! Africa’s largest supermarket group has introduced its latest initiative that shows their loyalty to customers, and not the other way around.

Securing your brand is a C-suite challenge
11/10/2019 - 14:37
Brand value is a key component of a company’s success and it takes several years to establish by implementing a brand strategy that supports the business. However, in today’s digital environment, brand value can be compromised in a matter of minutes and negatively affect the brand and company. As such, brand security is an issue that needs constant attention to minimise possible reputational damage to the brand and the associated risk of losing customers.