STOCKS | Estée Lauder Profit and Revenue Rise as Restructuring Begins to Pay Off

Estée Lauder reported fiscal first-quarter net income of $233 million, up from $47 million a year earlier, while net sales rose 6.7% to $3.72 billion. According to Sina Finance, the three months ended September 30 also saw earnings of $0.64 per share, compared with $0.13 a year earlier; adjusted earnings were $0.72 per share, above the FactSet analyst consensus of $0.51. Sales exceeded analysts’ estimate of $3.65 billion. Skincare revenue rose 4.8% to $1.65 billion, fragrance revenue climbed 19% to $861 million, and makeup revenue increased 1.8% to $1.05 billion. Hair-care revenue fell 0.8% to $128 million, partly offsetting gains in other categories. The company has pursued a restructuring in recent years, increasing investment in consumer-facing operations and expanding higher-growth sales channels while cutting costs, including through layoffs. CEO Stéphane de La Faverie said the company was bringing more breakthrough innovations to consumers, using bold, high-impact marketing to strengthen its brands, and building a more responsive and flexible organization to improve financial performance. Estée Lauder raised its outlook for the new fiscal year. It now expects organic net sales growth of 4% to 5.5%, up from its previous forecast of 3% to 5%, and adjusted earnings per share of $3.20 to $3.45, compared with its prior range of $3.10 to $3.35. Analysts’ consensus estimate for adjusted earnings per share is $3.32.