Feb 5 Beauty products company Estee Lauder Cos
Inc forecast current-quarter profit below analysts'
estimate, citing weak demand in European countries and South
Korea and slowing growth in China.
Estee Lauder shares fell as much as 8 percent in early
trading after the company also reported second-quarter sales
New York-based Estee Lauder forecast third-quarter sales
growth of 10-11 percent, which translates to about $2.52
The company, known for its Estee Lauder, Clinique and MAC
brands, said it expects earnings of 52-55 cents per share.
Analysts on average were expecting a profit of 63 cents per
share on revenue of $2.50 billion, according to Thomson Reuters
"Initial third-quarter guidance appears a bit light,"
Oppenheimer & Co analyst Joseph Altobello wrote in a note to
Estee Lauder said net income fell to $432.5 million, or
$1.09 per share, in the second quarter ended Dec. 31, from
$447.5 million, or $1.13 per share, a year earlier.
Excluding certain items, the company earned $1.09 per share,
slightly above the average analyst estimate of $1.06.
Total sales rose 3 percent to $3.02 billion, but fell short
of the average analyst estimate of $3.05 billion.
Separately, rival Elizabeth Arden Inc posted a 13
percent decline in North America sales in its second quarter,
hurt by weaker-than-expected holiday retail sales and
Elizabeth Arden's shares fell 7 percent to $23.85 on the
Estee Lauder shares were down 5 percent at $65.59 on the New
York Stock Exchange.
(Reporting by Maria Ajit Thomas in Bangalore)