Lauder has good qtr, lowers outlook.
Tuesday, October 28th, 2008For its first fiscal quarter that ended in September, Estee Lauder Companies posted an 11 percent sales increase and higher profits, up 31 percent. While these results were considered exceptional, the company lowered its forecast for the rest of the year due to the strengthening of the dollar and recessionary considerations. Makeup and skin care sales increased in the mid-digit range. Americas also showed increases in sales and operating profits.
The company said it expected earnings to be between $2.20 and $2.50 for the fiscal year ending June 30, 2009. Reuters said previous estimates were $2.57 to $2.72. Sales expectations were also lowered. Sales for Lauder in Europe, Middle East and Africa were up 16.4 percent while operating income in that region dropped considerably.