The Estee Lauder Companies Inc. Issues Q4 2012 Guidance; Raises FY 2012 Guidance; Comments On FY, Q4 2012 Charge Guidance

The Estee Lauder Companies Inc. announced that for the fourth quarter of 2012, it expects net sales are forecasted to increase between 10% and 11% in constant currency. Foreign currency translation is expected to negatively impact sales by approximately 3% versus the prior-year period. Diluted net earnings per common share (EPS), including charges associated with restructuring activities, are projected to be $.10 to $.15. The Company expects to take returns and charges associated with restructuring activities in fourth quarter 2012 of about $5 million, equal to approximately $.01 per diluted common share. Diluted EPS before charges associated with restructuring activities are projected to be $.11 to $.16. For fiscal 2012, it expects net sales to grow approximately 10% in constant currency. Foreign currency translation is expected to be negligible versus the prior-year period. The Company projects diluted EPS, including charges associated with restructuring activities, to be $2.14 to $2.19. The Company expects to take returns and charges associated with restructuring activities in fiscal 2012 of about $45 million, equal to approximately $.07 per diluted common share. The recording of charges will depend on when decisions are made and the relevant accounting criteria are met. Diluted net earnings per share before charges associated with restructuring activities are projected to be $2.21 to $2.26.