Estee Lauder's Q4 net income rose 72% year-over-year to US$41.1M, due in part to robust performance in skincare segment, followed by makeup and fragrance; revenue rose 12% to US$2.06B
August 15, 2011
– The Estee Lauder Cos. said net income rose 72 percent in the fourth quarter as results improved across all regions, particularly the U.S.
Still, the beauty products maker forecast that full-year earnings would be below Wall Street expectations as it invests in advertising and updates its technology. Shares fell nearly 6 percent in premarket trading.
For the three months ended July 29, net income of $41.1 million Monday, or 20 cents per share, up from $23.9 million, or 12 cents per share. Net income was 24 cents per share excluding restructuring costs. That matched analyst expectations, according to a FactSet poll.
Revenue rose 12 percent to $2.06 billion from $1.84 billion. Analysts expected net income of $2.02 billion.
Revenue rose 10 percent in the Americas, 13 percent in Europe, the Middle East & Africa and 16 percent in Asia Pacific.
The New York company says revenue reflected $42 million less in orders from international retailers ahead of implementing new software at some affiliates.
Skincare was the strongest quarter, with revenue up 15 percent to $3.72 billion. Makeup sales rose 13 percent to $3.37 billion.
Fragrance revenue rose 9 percent to $1.24 billion. Hair Care rose 4 percent to $432.3 million.
For the year, net income rose 47 percent to $700.8 million, or $3.48 per share, from $478.3 million or $2.38 per share last year.
Revenue rose 13 percent to $8.81 billion from $7.8 billion last year.
The company expects net income of $1.10 to $1.20 per share in the fiscal first quarter, excluding costs related to restructuring. It expects revenue to rise 11 percent to 13 percent, excluding the effect of currency fluctuations. Analysts expect $1.12 per share.
Estee Lauder, based in New York, said it plans to increase global ad spending in 2012 and update business software in 25 business units over the next two years.
During the fiscal year the company will "aggressively pursue growth in emerging markets and distribution," said CEO Fabrizio Freda. "We have strong momentum that we will support with higher investment spending, and intend to continue to gain share globally and increase profitability."
For the full year, the company predicts net income of $4 to $4.20, excluding one-time items. Analysts expect a higher $4.36 per share.
It expects revenue to rise 6 percent to 8 percent, excluding the effect of foreign exchange.
Estee Lauder's brands include Clinique, Bobbi Brown, MAC and others.
Shares fell $5.85 to $95 before the market opened Monday.
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