Estée Lauder has posted a spike in fourth-quarter sales, driven by its performance in China.
The cosmetics giant, which owns 25 brands and sells in around 250 countries across the globe, said group revenues rose 9% to $3.6bn (£3bn) in the three months to June 30.
Estée Lauder has been selling 10 of its brands, including Mac and Tom Ford, an Alibaba’s Tmal marketplace in a bid to boost sales in Asia.
Sales in its Asia-Pacific region jumped 18% during the quarter as a result of the strategic push.
Estée Lauder’s skincare business, its biggest and most profitable, also fuelled growth as sales climbed 15% to $1.6bn (£1.3bn). The increase was attributed to demand for premium brands such as Clinique and La Mer.
The group now expects full-year sales to grow between 7% and 8%, while adjusted profit per share will come in between $5.90 and $5.98. Analysts had expected sales growth of 6.9%, and $5.81 profit per share.
The consensus-busting performance pushed Estée Lauder’s share price up 11% to $198.62 last night.
Estée Lauder also forecast first-quarter sales growth and profits ahead of expectations. It said the outlook took into account the impact of the Hong Kong protests, the protracted US-China trade dispute and costs related to Brexit.
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