During the holiday season, Estee Lauder’s online sales, customizable gift options and expansion in China has been helped on the maintenance of its growth run as indicated in its recent quarter results. Aside from that, the company also presented optimistic results in its travel retail sector which added to the positive quarterly results. This has likewise boosted the outlook of the cosmetics giant.
The New York-based cosmetics company behind the likes of MAC Cosmetics and Clinique saw a sales increase in second-quarter results. The skin care, makeup and fragrances sector all posted double digit upsurges. The estimated benefits from the US Tax Bill have also helped on the lift of its full-year forecast for a second time.
Advertisement of the MAC Cosmetics (Make-up Art Cosmetics; stylized as M.A.C) is a manufacturer of cosmetics headquartered in New York City.
Additionally, Revenues on a regional level also saw an upsurge in the said quarter. The company announced a 33% increase in Asia Pacific which led the overall data. More so, the e-commerce sector Estee Lauder rose as well.
“In the holiday season, our brands achieved outstanding results from their e-commerce businesses, and customizable gift options were significant contributors,” Chief Executive Officer of Estee Lauder Fabrizio Freda told reports.
The “digital first" tactics of Estee Lauder has found success in the recent times. The shares of the company have beaten the market estimates of 60% in the preceding 12 months. According to twenty one analysts, the company is a recommended stock right now. However, few of them advised a hold position instead. But so far, none had recommended a sell position at the time being.
"They've done a great job of foreseeing the change," Analyst Jason Gere told reports.
In further details, the profit data of the company in the second quarter was at $1.52 per share. This has exceeded that market expectations of just $1.44. The sales figures of Estee Lauder also recorded $3.74 billion which has also went beyond the estimated results of just $3.67 billion.
“Our strong results, combined with future benefits we expect from the passage of the new Tax Cuts and Jobs Act, further enhance our ability to strategically invest in faster-growing areas of prestige beauty to attract new consumers,” Freda added. “Our strategy is sound and effective, and we have the brands, resources and talent to continue above-industry growth in our second half and full fiscal year. “
The trades of Estee Lauder have maintained a bullish track in its recent performances with the recent one indicating a 1.62% upsurge from the previous trades. This is a 2.23 rise as well.
A position of buy would be recommended for the stock as the latest indication of Coppock curve showed positive results. It is currently at 1.25 at the time being.
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