The Estée Lauder Companies Inc. announced that as a result of better-than-anticipated net sales and cautious spending in the first fiscal quarter ended Sept. 30, 2009, it now expects to report net earnings per share, before charges associated with restructuring activities, to be significantly higher than previous guidance.
The company said that the improved net sales in the quarter reflected the strong sell-in of new product launches, continued strong growth in Asia, greater passenger traffic in the company's travel retail business and improved foreign currency translation. The company also benefited from earlier holiday shipments, which were previously anticipated to occur in the fiscal second quarter. The lower spending versus plan reflected the company's measured approach to investing in light of the length and extent of the global economic downturn and the potential impact of the H1N1 virus.
The company is committed to pursuing its long-term strategy. However, despite the stronger-than-anticipated first quarter results, the company remains cautious regarding the global economic climate and consumer spending throughout the year. For the remainder of the fiscal year, it expects to accelerate investment spending above first quarter levels behind its brands and key priorities. The company said it expects to increase earnings per share guidance, before charges associated with restructuring activities, for the full fiscal year ending June 30, 2010, when it reports first quarter results later this month.
The company will release fiscal 2010 first quarter financial results and host a conference call on Friday, Oct. 30, 2009.