Estée Lauder has posted net sales of US$3.04bn during the second quarter of this year, an increase of 1 percent compared to the same period last year when sales stood at US$3.02bn.
Net earnings for the quarter were $435.7 million, compared with US$432.5m last year. Diluted net earnings per common share increased 3 percent to US$1.13, compared with US$1.09 in the previous year.
For the quarter, the negative impact of foreign currency translation on diluted net earnings per common share was US$.07. Excluding the impact of foreign currency translation, net sales increased 5 percent and diluted net earnings per common share increased 10 percent, which reflects a reduction in the company’s effective tax rate.
Fabrizio Freda, President and Chief Executive Officer, said, “Our successful performance this quarter reflected solid global demand for our brands, including a strong holiday season. Our results further demonstrate our ability to grow despite currency headwinds and softness in several countries. For the quarter, our sales and profits came in higher than planned as we continued to leverage our diverse growth engines and capitalized on high-growth opportunities, which translated into excellent results in several of our higher-margin brands and channels, while efficiently managing costs. Key drivers of our performance were the United Kingdom and emerging markets, our makeup and luxury brands, and online, specialty-multi and freestanding store channels.
“We began the second half of our fiscal year by successfully completing the acquisitions of Editions de Parfums Frédéric Malle and GLAMGLOW. These brands, along with RODIN olio lusso and Le Labo, which we purchased last quarter, complement our portfolio in skin care and luxury fragrance and further strengthen our long-term strategic growth plan.”