This Lauder continues to increase its annual financial goals


NEW YORK (AP) – Cosmetics group Estée Lauder has again raised its annual projections on Wednesday, despite the trade war between Brexit and Washington-Beijing, which is likely to affect sales of its creams and make-up products. .

The US company now foresees a significant improvement in profitability and revenue for the full fiscal year in progress compared to three months ago.

Estée Lauder expects adjusted earnings per share, a benchmark in North America, from $ 5.15 to $ 5.19 in the year ended June 30.

The previous forecast was $ 4.92 to $ 5, while financial analysts expect $ 5.06 on average.

Annual revenue should grow in the range of 7% to 8%, but in the constant scope and growth of exchange rates will be from 10% to 11%.

In February, Estée Lauder predicted an increase in net sales of between 4% and 5% for organic growth of 8% to 9%.

This is the third time that the company has raised its financial goals.

That optimism was hailed on Wall Street, where shares rose more than 3 percent on the e-pre-session.

Investors were even more pleased that Estée Lauder remained confident despite several factors that could weigh on future sales and limit consumer spending.

In particular, the company listed the costs related to Brexit, new customs duties that should prevail in the United States and China, in the absence of a trade agreement, currency volatility and closure of retail stores. United States and United Kingdom.

"We continue to see a solid (demand) in several engines of our growth," said CEO Fabrizio Freda, citing the Asia / Pacific region, skin care products category, products sold under the brand Estée Lauder, The Sea and Tom Ford.

For the three-month period ended March 31 and corresponding to the third quarter of fiscal year 2018/19, Estée Lauder reported net income of $ 555 million, an increase of 49.1%.

This result resulted in adjusted earnings per share of $ 1.55, higher than the $ 1.30 average reported by analysts.

Revenue rose 11 percent to $ 3.74 billion from $ 3.52 billion.

afp / rp


Source link