Lauder Says Fiscal 2010 Q2 Results Will Exceed Earlier Expectations
Posted: January 21, 2010
The Estée Lauder Companies Inc. announced that financial results for its second quarter ended Dec. 31, 2009, will exceed the Company's previous expectations. Based on preliminary indications, the company now expects reported net sales growth of between 10% and 11% and diluted net earnings per share of between $1.23 and $1.30. Charges associated with restructuring activities are expected to be minimal for the quarter. The higher-than-anticipated results stem from stronger net sales, favorable product mix and the positive effect of continued cautious spending. The improved sales reflected continued strong growth in Asia, successful new innovation, and better-than-expected results from the company's travel retail business and the holiday season in the United States. Sales also benefited from further favorability in foreign currency translation.
The lower spending versus plan, which continued from the fiscal first quarter, reflected the company's measured approach to investing, particularly in advertising and promotion, in light of the global economic downturn, and several external potential risks, such as the H1N1 pandemic, which have not materialized in the quarter.
The company will release fiscal 2010 second quarter financial results and host a conference call on Thursday, Jan. 28, 2010.