11.04.14
The new fiscal year is off to a rough start for The Estée Lauder Companies, which reported a 24% decline in first-quarter profit, hurt by lower sales as some retailers advanced orders in the fourth quarter ahead of a planned technology upgrade.
Net income attributable to Estee Lauder fell to $228.1 million, or 59 cents per share, in the first quarter ended Sept. 30.
Net sales fell 1.6%to $2.63 billion, hurt in part by a strong dollar and weakness in Asian markets. Skin care sales fell 7% to $1.09 billion, but makeup sales increased 2% to more than $1 billion; fragrance and hair care sales increased 3% to $377 million and $128 million, respectively and the "other" category rose nearly 11% to $12.8 million.
The results beat Wall Street estimates, but Lauder still cut its guidance for the year. The company now expects pre-share earnings of $3.03 to $3.11, down from its previous estimate of $3.10 to $3.20 a share.
In other company news, Estée Lauder acquired Rodin olio lusso, a luxury skin care brand founded by the New York stylist Linda Rodin. Terms of the deal were not disclosed.
Founded in 2007, Rodin olio lusso provides a highly selective line of premium, sensorial products and has unique positioning in the high-growth subcategory of skin care oils. The brand is currently sold in select high-end, trend-setting boutiques and specialty-retail channels, including Barney’s, Colette and Liberty.
The centerpiece of company is its Luxury Face Oil, which is mixed from a combination of eleven essential oils derived from flowers and botanicals. Many of these same oils are featured in the brand’s other products, including body oil, luxury hand and body cream, perfume, soap, a scented candle, and hair oil developed in partnership with renowned hairstylist Bob Recine.
“Rodin olio lusso is the ultimate ‘insider’ beauty brand,” said Fabrizio Freda, president and CEO of The Estée Lauder Companies. “With its luxurious product line and strong creative point of view, we believe it has the potential to be a high-growth global skin care brand that strategically enhances our portfolio. Linda is truly an authentic creative force and has an incredible entrepreneurial spirit. I am thrilled to welcome her and her brand to The Estée Lauder Companies.”
Net income attributable to Estee Lauder fell to $228.1 million, or 59 cents per share, in the first quarter ended Sept. 30.
Net sales fell 1.6%to $2.63 billion, hurt in part by a strong dollar and weakness in Asian markets. Skin care sales fell 7% to $1.09 billion, but makeup sales increased 2% to more than $1 billion; fragrance and hair care sales increased 3% to $377 million and $128 million, respectively and the "other" category rose nearly 11% to $12.8 million.
The results beat Wall Street estimates, but Lauder still cut its guidance for the year. The company now expects pre-share earnings of $3.03 to $3.11, down from its previous estimate of $3.10 to $3.20 a share.
In other company news, Estée Lauder acquired Rodin olio lusso, a luxury skin care brand founded by the New York stylist Linda Rodin. Terms of the deal were not disclosed.
Founded in 2007, Rodin olio lusso provides a highly selective line of premium, sensorial products and has unique positioning in the high-growth subcategory of skin care oils. The brand is currently sold in select high-end, trend-setting boutiques and specialty-retail channels, including Barney’s, Colette and Liberty.
The centerpiece of company is its Luxury Face Oil, which is mixed from a combination of eleven essential oils derived from flowers and botanicals. Many of these same oils are featured in the brand’s other products, including body oil, luxury hand and body cream, perfume, soap, a scented candle, and hair oil developed in partnership with renowned hairstylist Bob Recine.
“Rodin olio lusso is the ultimate ‘insider’ beauty brand,” said Fabrizio Freda, president and CEO of The Estée Lauder Companies. “With its luxurious product line and strong creative point of view, we believe it has the potential to be a high-growth global skin care brand that strategically enhances our portfolio. Linda is truly an authentic creative force and has an incredible entrepreneurial spirit. I am thrilled to welcome her and her brand to The Estée Lauder Companies.”