Estee Lauder 2Q Profit Falls

Estee Lauder reported that its fiscal second-quarter profit fell 41% after taking a charge from the sale of its Stila brand. Net income dropped to $81.7 million (38 cents per share) from $138.3 million (60 cents per share) a year earlier. Earnings from continuing operations rose to $150.4 million (70 cents per share) from $139.7 million (61 cents per share). Sales rose 3% to $1.78 billion from $1.74 billion. Excluding the impact of foreign currency translation, sales rose 5%. To cut costs and improve profits, The company plans to save between $40 million and $45 million this fiscal year (ending June 30). Part of this savings was expected to come from the sale of its Stila makeup line.