Estée Lauder companies reports lower-than-expected results amidst lack of spend in US department stores

Estée Lauder companies reports lower-than-expected results amidst lack of spend in US department stores

Estée Lauder Companies reported lower-than-expected results this week, with the blame for the fall resting on lower footfall and spend in US department stores and disappointing results for Clinique and Smashbox brands.

As many companies blame decreasing sales in department stores, with bigger spend items such as cars and phones taking precedence over personal care items, the beauty giant reported sales in the America regions dropped 2.8 percent to $1.23 billion in Q1 ending September 30.

Meanwhile, lower footfall in MAC stores also hurt sales, with forecasts looking similarly moderate for the year ending 2017, according to Chief Executive Fabrizio Freda.

The company expects a 3-4 percent sales growth for the quarter ending Dec 31st, while it also forecasts charges amounting to around $30-$40 million in this quarter due to it leaving markets and making some staff redundant.

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