Estee Lauder Cos Inc
Estee Lauder, the maker of Clinique, M.A.C. and other cosmetics, saw sales gains in every category and region. The growth was led by the international business, particularly stores in airports and countries such as China and Russia.
Our brands and products are resonating with consumers, Chief Executive Fabrizio Freda said during a conference call. The luxury consumer is again eager to shop, but is choosy about what she buys.
He said Estee Lauder's products and personalized service are resonating with shoppers. The company is stepping up advertising in areas such as digital media to reach more women.
Overall, the result indicates consumer spending in prestige beauty continues to grow strongly, said Stifel Nicolaus analyst Mark Astrachan. He said Estee Lauder is growing meaningfully ahead of its rivals.
Elizabeth Arden, meanwhile, saw strong sales at mass retailers, such as Wal-Mart Stores Inc
Estee Lauder shares shot up 11 percent to $89.44 and Elizabeth Arden shares rose 9 percent to $27.26.
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Estee Lauder's earnings per share excluding items rose to $1.77, topping analysts' average forecast of $1.44, according to Thomson Reuters I/B/E/S. [ID:nN03113594]
Sales jumped 10 percent to $2.49 billion, coming in ahead of analysts' average forecast of $2.42 billion.
Estee Lauder expects to earn $3.40 to $3.60 per share this year, before restructuring charges, up from an October forecast of $2.90 to $3.10 per share. It expects sales to rise 8 percent to 10 percent, up one percentage point from its prior target.
For the current third quarter, Estee Lauder forecast earnings, before restructuring charges, of 44 cents to 57 cents per share, with sales up 8.5 percent to 10.5 percent. Analysts were expecting a profit of 47 cents per share.
Elizabeth Arden earned $1.20 per share, excluding items, surpassing analysts' average forecast of $1.04.
Sales rose 3.1 percent to $405.6 million, slightly below Wall Street's expectations.
Elizabeth Arden now expects to earn $1.40 to $1.50 per share this year, up from a prior target of $1.15 to $1.25. It forecast a sales increase of 4 percent to 5 percent, compared with a prior outlook of 3.5 percent to 4.5 percent.
For the current third quarter, it expects to post a loss of 5 cents to 8 cents per share, with sales of $222 million to $228 million. Analysts currently expect a loss of 8 cents per share on $225.2 million in sales in the quarter.
(Reporting by Jessica Wohl, editing by Dave Zimmerman)