Estee Lauder Profits Drop

Estee Lauder Companies. said Wednesday that first-quarter profit dropped 38% and missed Wall Street’s forecast, hurt by sluggish sales of fragrance and skin-care products. The Manhattan-based company saw its shares close down 7.7%, or $2.55, at $30.71. The stock hit a 30-month low of $29.98 earlier in the session. For the most recent quarter, the cosmetics company said net income fell to $58.5 million (26 cents/share) from $95 million (41 cents) a year ago. Earnings from continuing operations were 28 cents a share, or 4 cents short of analysts’ average estimate, according to Thomson First Call. Sales for the three months ended Sept. 30 increased fractionally to $1.5 billion from $1.49 billion in last year’s first quarter, and shy of analysts’ average view for $1.54 billion in sales. Estee Lauder said sales were tempered by weakness at certain retailers, lower sales from autumn promotions and, to a lesser extent, by higher gas prices and store closures resulting form the Gulf Coast hurricanes.