Estee Lauder 2Q Net Up 15% On Improved Sales |
| Wall Street Journal - Feb 3, 2012 |
Estee Lauder Co. (EL) is counting on continued strong growth in the U.S., where results are being boosted by a rebound in affluent consumer spending, to compensate for weakness in Europe and a stronger dollar.
But the beauty-product maker's growth trajectory will face a hiccup in its current fiscal third quarter, when the company plans to spend more advertising as it backs several new products, like an anti-aging cream being launched in Europe. Estee Lauder forecast third-quarter results that were well below analysts' estimates because of the increased spending, putting pressure on shares, which were down 3.4% in recent trading to $56.84.
The downbeat view came after Estee Lauder reported a 15% increase in second-quarter earnings, as the company got a boost from higher-than-expected holiday sales and strong growth in emerging markets like China, where sales rose 44%.
Estee Lauder results are also being helped by the U.S., a market where most makers of consumer products continue to fret about weak demand. But affluent shoppers have bounced back much faster than the broader populace, which is still worried about spending.
Read Full Article from Wall Street Journal
- Posted: 2012-02-03 13:13:42
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