The Estée Lauder Companies has reported better-than-expected quarterly sales and profit for the second quarter of fiscal 2016, and accordingly raised its full-year forecast, predicting sales to grow 7 to 8 percent on a constant currency basis for the year ending June 30.
Sales were up 3 percent to US$3.12 billion for the quarter ended December 31, 2015, while earnings grew 2 percent to US$446.2 million. Excluding the impact of foreign currency translation, net sales rose 8 percent and diluted net earnings per share soared 15 percent. The make-up division was particularly buoyant, with sales up 6.4 percent US$1.25 billion, boosted by demand for lipsticks and foundations.
“Our strategy of portfolio diversification and our agility to reallocate resources to the best opportunities enabled us to deliver excellent second quarter sales and earnings,” said ELC President and CEO Fabrizio Freda. “Our strong constant currency sales growth reflects our ability to effectively anticipate key consumer and market trends, including greater demand for products in the fast-growing prestige make-up category and luxury beauty tier, and the importance of a strong and growing online presence. In the holiday season, our brands achieved outstanding results from their e-commerce business, as well as the gift sets, services and sampling events they offered at retail.”
It’s no surprise then, that Lauder was keen to continue the momentum with a dedicated Chinese New Year promotion. The company’s signature brand Estée Lauder launched several products aimed at the celebration, including a limited edition Year of the Monkey powder compact and Advanced Night Repair in a golden bottle adorned with a good luck charm.