Company News

Estee Lauder To Close Shops, Take Charges

Author Image

By: TOM BRANNA

Editor

Estee Lauder announced today that it will close 86 in-store shops, revamp its supply chain and change how it sells its Jane cosmetics brand, resulting in fourth-quarter pretax charges of $60 million. The company said the charge, 16 cents a share after tax, will also include a previously announced revamp of its global brand structure.

The company said sales are expected to grow 9% for the year before the effect of the strong dollar compared with other currencies. Sales are seen growing in the mid-teen percentage in Europe, the Middle East & Africa and the low double-digits in Asia/Pacific, helping to offset the impact of the slow U.S. retail environment, the company said.

Keep Up With Our Content. Subscribe To Happi Newsletters