(Reuters) - Estee Lauder Cos Inc EL.N 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 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.
It had earlier forecast adjusted earnings of $3.03-$3.11 per share and sales to be flat or down 1 percent.
Smaller rival Coty Inc (COTY.N), known for its Calvin Klein and Davidoff perfume brands, also reported a better-than-expected quarterly profit due to cost savings from its streamlined supply chain.
Estee Lauder said net income attributable to the company rose almost 1 percent to $435.7 million, or $1.13 per share, in the second quarter ended Dec. 31.
Net sales rose 1 percent to $3.04 billion
Analysts on average had expected revenue of $3.01 billion, according to Thomson Reuters I/B/E/S.
Coty’s shares rose as much as 11.5 percent to a record high of $21.10 on the New York Stock Exchange. Shares of rival Elizabeth Arden Inc RDEN.O, scheduled to report after markets close, were up 3.6 percent at $15.10 on the Nasdaq.
Editing by Savio D'Souza and Don Sebastian