(Adds forecast, details, share movement)
May 2 Estee Lauder Cos Inc, known for its
Clinique and MAC brands, raised its earnings forecast for the
full year, driven by the launch of new skin care and makeup
The company, which plans to launch a new shower gel and body
lotion as well as limited edition mascara and repair sets,
raised its earnings forecast to $2.86-$2.90 per share from
Analysts on average were expecting $2.87 per share,
according to Thomson Reuters I/B/E/S.
The forecast excludes a 10-cent impact from the currency
devaluation in Venezuela in the third quarter and expected gains
of 14-17 cents per share from early orders from some retailers
in the fourth quarter.
Estee Lauder said it expects global prestige beauty, to
which the company belongs, to grow about 3 to 4 percent in 2014.
Shares of the company, which owns the Estee Lauder and Bobbi
Brown brands, rose about 3 percent in premarket trading.
Estee Lauder reported an 8 percent rise in third-quarter
sales from the Americas, its biggest market, while Asia Pacific
sales rose 14 percent.
Sales rose 11 percent to $2.55 billion.
Sales growth is ahead of the category and large prestige
beauty peers L'Oréal SA and LVMH indicating
strong share gains for Estée Lauder in the period, Stifel
Nicolaus analysts said.
Analysts had raised doubts about whether the luxury market
can sustain the double-digit growth it has enjoyed in recent
years, due to a slowdown in China.
"For the remainder of the fiscal year we also expect our
growth will continue to be fueled by our success in high-growth
channels and emerging markets", Estee Lauder Chief Executive
Fabrizio Freda said.
Smaller rival Avon Products Inc on Thursday reported
lower-than-expected quarterly results, hurt by a drop in sales
in key markets such as Russia, the United States and Mexico.
Estee Lauder said net income attributable to the company
rose to $213.2 million, or 54 cents per share, from $178.8
million, or 45 cents per share, a year earlier.
Excluding items, the company earned 64 cents per share in
the quarter ended March 31.
Analysts on average had expected the company to earn 55
cents per share on revenue of $2.49 billion.
(Reporting by Devika Krishna Kumar in Bangalore; Editing by