Jan 28, 2010
Estee Lauder profit jumps after raising forecast
Jan 28, 2010
CHICAGO, Jan 28 (Reuters) - Estee Lauder Companies Inc (EL.N) posted a 62 percent jump in quarterly profit as renewed interest in cosmetics stemmed a year-long slide in sales and it cut back on spending.
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The higher profit was not a surprise, as the cosmetics maker said on Jan. 20 that its results for the second quarter ended on Dec. 31 would exceed its earlier forecast. At that time, it said it expected to earn $1.23 to $1.30 per share, with sales up 10 percent to 11 percent and minimal restructuring charges.
Quarterly profit rose to $256.2 million or $1.28 per share, from $158 million, or 80 cents per share, a year earlier. Sales increased 10.8 percent to $2.26 billion.
Analysts on average expected a profit of $1.21 per share on $2.24 billion in sales, according to Thomson Reuters I/B/E/S.
The company had previously reported four consecutive quarters of sales declines, with its last increase coming in the quarter that ended in September 2008.
Results benefited from strong growth in Asia, new products, and a better-than-expected performance in airport stores and in the United States. The company also cut back on spending in areas such as advertising, choosing to keep a cautious view as the economic downturn persisted. (Reporting by Jessica Wohl; Editing by Lisa Von Ahn)
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