Estee Lauder beats the Street – more proof that Chinese demand holds strong
Chinese demand has boomed for cosmetics and high-end skincare products, according to Estee Lauder, a market-leading cosmetics brand that reported earnings this week. Echoing the sentiments of other big luxury brands that have reported earnings in October, Estee said that there were no signs of the slowdown in demand that many luxury investors had worried about.
Estee Lauder’s share price has appreciated by 9% in 5 days on the back of strong earnings
Source: Yahoo Finance
Estee said that, excluding items, the company earned $1.41 per share, and revenue came in at $3.52 billion. That latter figure marks an 8% rise against the year-ago quarter, and both metrics beat analysts’ expectations. As a result, Estee raised its guidance for fiscal 2019. It now expects adjusted earnings per share in a range of $4.73 and $4.82 (that’s up from a range between $4.62 and $4.71). Analysts are looking for $4.75 per share.
The company’s CEO, Fabrizio Freda, made the following comment over Estee’s performance through the quarter:
“Our fiscal year is off to an excellent start. Our sales and earnings per share grew double digits, reflecting multiple engines of global growth throughout our product categories, brands, regions and channels. Our creative innovations and high-quality products resonated strongly. We attracted new consumers and increased engagement with existing ones through successful digital advertising and influencer activities.”
“We are operating in a challenging macro environment with many economic and geopolitical risks, but we are confident in the strength of our business strategy, the quality of our products, the desirability of our brands and our ability to execute with discipline and agility. With our strong first-quarter results and exciting upcoming launches and programs, we are raising our EPS guidance for the year.”
Dominion holds Estee Lauder in its Global Trends Luxury Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.