Sector Wrap: Cosmetics companies

Shares of New York-based Estee Lauder rose $6.29, or 14 percent, to close at $51.25, and set a fresh 52-week high of $51.50, after strong international revenue boosted quarterly profit for the beauty and skin care products company. Sales in Europe, the Middle East, Africa and the Asia-Pacific rose 21 percent.

Goldman Sachs analyst Andrew Sawyer said sales remained strong, and the company's revenue outlook was strong, despite economic weakness.

However, Sawyer said the company will need to lower long-term sales growth objectives and scale back on heavy spending to maintain U.S. share.

Meanwhile, Elizabeth Arden Inc.'s adjusted quarterly results met analysts' estimates, lifting the stock $1.75, or 10.3 percent, to $18.80.

The company posted a loss, compared with a year-ago profit, because of big charges for a licensing agreement for Liz Claiborne fragrance brands.

Oppenheimer & Co. analyst Joseph Altobello said the stock's valuation doesn't fairly reflect potential earnings accretion from the licensing agreement or savings from a restructuring.

Elizabeth Arden also expects 2009 profit will top Wall Street expectations on growth in its domestic and European businesses.

Elsewhere in the sector, shares of Avon Products Inc. rose 60 cents to $43.09, and shares of Revlon Inc. declined 6 cents, or 5.2 percent, to $1.10.