Estée Lauder Cos. reported a net loss for its fiscal fourth quarter. The company blamed the $25.4 million loss on cost-cutting initiatives and the repositioning of certain businesses. The latest results include a charge of $76.9 million, or $.32 a share, for restructuring and repositioning. The restructuring moves are aimed at cutting costs in the company’s internet business and its supply chain, globalization of the organization and refining its distribution channel, executives said. Excluding these costs, the company earned $51.5 million. Fourth quarter sales rose 7.8% to $1.13 billion from $1.05 billion.
For the full fiscal year, Estée Lauder reported net income of $191.9 million, or $.70 a share, down 37% from $305.2 million, or $1.16 a share, the previous fiscal year. Sales rose 1.6% to $4.74 billion from $4.67 billion.
“Sustaining sales growth for the fiscal year just ended was quite an accomplishment given the difficult retail environment that challenged our businesses and led to lower overall results,” president and chief executive Fred H. Langhammer said in a statement.