skin care, makeup revenue helps estee lauder 4q

by:Beauty Spirit     2020-08-15
NEW YORK—
Higher sales are better
Clinique skin care products and other pricing-
Tone correction helps cosmetics maker Estee Lauder to get fourth place
Quarterly profits, the company said on Thursday. Its full-
Net income doubled this year as revenue grew 6%, but the company said growth in advertising spending would be cut for the first time
Share prices fell on quarterly profits. High U. S.
Cosmetics makers have been hit by unemployment and economic instability, and Estee Lauder is restructuring to cut costs.
The company said the efforts, including a 10% reduction in products this year, saved it $0. 364 billion in 2010 financial years.
CEO Fabrizio Freda said in a conference call with analysts that demand has been improving.
\"Over the past few months, with the increase in consumer spending, prestige beauty sales at North American department stores have improved significantly,\" he said . \".
\"When they can afford something, need something or are inspired by something, they buy it again,\" Freda added in an interview with The Associated Press . \".
\"But consumer sentiment is still low, so I will define it for the US. S.
Consumers are improving but haven\'t come back yet.
Rival Elizabeth Arden also said on Thursday that the company\'s fourth-quarter profit picked up due to cost cuts and rising cosmetics and perfume revenues ---
Although Estee Lauder says sales of perfume have declined. In U. S.
The Clinique and MAC brands owned by Estee Lauder, as well as its luxury brands Bobbi Brown and La Mer, have gained market share.
Driving the growth of skin care is two products recently launched by Estee Lauder, Estee Lauder\'s advanced night-time repair of facial and eye serum, and Clinique\'s better clinical dark spot School
Clinique Skin said:
Estee Lauder\'s aggressive tone correction products attract customers who usually buy skin products at pharmacies and discount stores.
Estee Lauder now plans to add advertising behind its biggest brand and improve
Store customer experiences for these brands.
\"There will be fewer large events that will be supported by a lot of advertising, and as an alternative to many small events, each one will be supported by a little bit of advertising,\" Freda, who said on the phone, he has just completed his first year as CEO.
This is a real change in philosophy.
Net income for the quarter ended June 30 was $23.
9 million, 12 cents per share, compared to 17 dollars lost.
$9 million a year ago.
Excluding the cost of restructuring in the fourth quarter of last year, the company made a profit of 20 cents per share.
Net profit for the fourth quarter of this year was 29 cents per share, excluding restructuring and debt issuance related costs.
According to an analyst survey by Thomson Reuters,
Average net income of 30 cents per share. Estee Lauder --
More than half of its income comes from outside the Americas. -
Revenue rose 9% to $1.
8 billion from $1. 68 billion.
Analysts expect revenue of $1. 83 billion.
Net income for the year more than doubled to $478.
3 million, or $2.
$38 per share, $218.
4 million, or $1.
10 per share last year.
Revenue rose 6% to $7. 8 billion.
First look forward to the company-
Quarterly net income was 67 cents to 80 cents per share.
Analysts expect 78 cents per share. It expects all.
Annual net income of $2. 80 and $3.
05 per share, excluding 1-time items.
This is lower than analysts expected for $3. 16 per share. Shares fell $1. 55, or 2.
At $58, 6%.
In Thursday\'s deal
The stock traded between $33. 14 and $71.
In the last 52 weeks.
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