Driven by the launch of skin care and makeup products, Estee Lauder Cos Inc raised its earnings forecast for the full year. 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 $2.80-$2.87. Analysts on average were expecting $2.87 per share.
Estee Lauder also said it expects global prestige beauty, to which the company belongs, to grow about 3 to 4% in 2014.
Earlier, Estee Lauder reported an 8 percent rise in third-quarter sales from the Americas, its biggest market, while Asia Pacific sales rose 14%. Sales rose 11% 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.