Estee Lauder revenue beats estimates on strong holiday sales
By Sruthi Ramakrishnan
(Reuters) - Estee Lauder Cos Inc (EL.N: Quote) reported a better-than-expected rise in revenue in the second quarter, helped by higher demand for its skin care and makeup products such as Clinique lotions and Pure Color Envy lipstick during the holiday shopping season.
The company's shares were up 7.6 percent at $78.09 in early trading.
Estee Lauder, however, said sales would fall more than it had forecast in the year ending June 30, hurt by a stronger dollar and slowing growth in Hong Kong and China.
Raymond James analyst Joseph Altobello said the forecast cut was anticipated because of the impact from a stronger dollar. "We continue to view it as an interesting secular growth story with manageable near-term headwinds," he said.
The rise of the dollar over the past nine months has reduced the value of overseas sales for many companies including Johnson & Johnson (JNJ.N: Quote) and Procter & Gamble Co PG.N.
The maker of M.A.C., Bobbi Brown and Estee Lauder cosmetics gets about 60 percent of its net sales from outside the Americas.
Up to Wednesday, the dollar .DXY had risen 17.8 percent against major currencies since June 30, 2014.
Estee Lauder said it now expected adjusted earnings of $2.93-$3.01 per share on net sales decline of up to 2 percent for the full year. Continued...