Estée Lauder Companies shares hit record high following strong quarterly results

Estée Lauder Companies shares hit record high following strong quarterly results

The Estée Lauder Companies (ELC) has reported strong quarterly results with net sales rising 5 percent for the year ending 30 June, 2017 – figures that sent the company’s shares rising to a record-breaking $106.08 last week.

The beauty powerhouse achieved higher-than-average sales for brands such as M.A.C and Tom Ford, while also profiting from countries such as China and Italy where consumers are continuing to spend in-store.  

Fabrizio Freda, President and Chief Executive Officer, said, “With our leading brands, quality innovations and the acquisition of two makeup brands, we attracted new consumers globally. Our business accelerated in our online direct-to-consumer and retailer e-commerce sites, as well as in the travel retail and specialty-multi channels, and we built momentum in key geographies, like China and Italy, aided by enhanced digital and social media communications.”

The company reported a 16 percent rise for its make-up unit, reaching $1.31 billion in the fourth quarter, while sales in Europe, the Middle East and Africa, and Asia Pacific rose 11.4 percent to $1.72 billion, with China posting a double digit rise.

ELC’s acquisition of Too Faced and BECCA Cosmetics last year helped boost sales, while the skincare division was up 4 percent to $1.07 billion.

Forecasts for the year ahead remained positive, with Freda stating, “Our full-year outlook in constant currency reflects net sales growth of 7 percent to 8 percent, including incremental sales from our fiscal 2017 acquisitions, and 9 percent to 11 percent earnings per share growth. Looking out over the next three years, we continue to target constant currency net sales growth of 6 percent to 8 percent and double-digit EPS growth.”