Estée Lauder has forecast full-year revenue and profit above Wall Street expectations after beating estimates for quarterly earnings on Monday, bolstered by booming demand for its premium skincare products such as La Mer and strength in its Asia-Pacific business.
Shares of the company, which has been investing heavily in its skincare segment as more consumers opt for products like serums, toners and face masks, rose nearly 5% in premarket trading.
Sales in the skincare business, its biggest and most profitable segment, rose 15% to $1.59 billion in the fourth quarter, while sales in Asia-Pacific region, which includes China, grew 18%.
The company said it expects full-year sales to grow in the range of 7% to 8% and adjusted profit to be between $5.90 and $5.98 per share in fiscal 2020. Analysts had expected a sales growth of 6.87% and profit of $5.81 per share.
The company said its forecast takes into account geopolitical issues such as Hong Kong protests, costs related to Britain's impending exit from the European Union and the escalating trade dispute between the United States and China.
Net earnings attributable to the company fell to $157 million, or 43 cents per share, in the quarter ended June 30, from $186 million, or 49 cents per share, a year earlier
Excluding items, it earned 64 cents per share, beating the average analyst estimate of 53 cents per share.
Net sales rose 9% to $3.59 billion, beating expectations of $3.53 billion, according to IBES data from Refinitiv.