Estee Lauder topped quarterly profit and reduced in price on the markets estimates on Monday as customers bought more of its namesake makeup and high-margin Clinique and La Mer skincare results at duty free stores, online and beauty-focused retailers.
Shares of the actors rose 6 percent in early trading.
The company’s strong results were in difference to rival Revlon and e.l.f Beauty’s lower-than-expected quarterly sales reported earlier in August due to straitened demand across U.S. retailers.
Analysts have said Estee’s assorted premium products and wide portfolio of cosmetics products helped it make up for much of the slowdown in U.S. retail.
Sales at Estee’s skincare products lurched 29 percent in the quarter and beat the analyst average estimate, repaying a slowdown in sales at its makeup business that posted its slowest lump in nearly two years.
Makeup sales were muted due to weak require for its M.A.C. cosmetics in the United States where store traffic continues to depend on at both department and standalone stores.
Fragrance sales, especially those of Jo Malone London and Tom Ford, recoiled 11 percent on the back of high demand in North America and Europe.
Whole, quarterly sales rose 14 percent to $3.3 billion, trample depart the average analyst estimate of $3.25 billion, according to Thomson Reuters.
Estee Lauder bring up its plan to free up more cash for its faster growing brands by penetrating costs is likely to help it save between $350 million-$450 million a year, higher than the $200-$300 million it had watched earlier.
However, the 72-year-old cosmetics company expects a stronger dollar – up 4.4 percent so far this year – to wound its first quarter profit and sales.
Estee expects earnings of $1.18-$1.22 per part, compared with the analysts’ average estimate of $1.32, according to Thomson Reuters.
Net profits fell 19 percent to $186 million or 49 cents per interest in the quarter ended June 30. Excluding items it earned 61 cents per division, beating the average estimate of 56 cents.