Estee Lauder (EL) announced that the cost reduction will help the company to achieve profit growth in the recent quarter, in the department store passenger flow decline and weak overseas markets, the cosmetics company was restructured.
Just past the first quarter of the weak revenue growth. As of 0:55 GMT, Estee Lauder shares fell 5.42 percent to 81.62 US dollars.
The company said its sales for the quarter ended Sept. 30 rose 1.1 percent to $ 2.87 billion. Analysts had expected $ 2.9 billion. Perfume revenue rose 7%, hair care products revenue grew 1%, cosmetics revenue was flat, but skin care products revenue fell 1%.
Overall, Estee Lauder quarterly profit of $ 294 million, or 79 cents per share, compared with $ 309 million, or 82 cents per share. The company included a restructuring charge of $ 31 million, or 5 cents per share, and other expenses. Excluding these charges, earnings per share rose to 84 cents.
The company in August had expected adjusted earnings per share of 73-77 cents, when the expected far below the average analyst expectations.
Estee Lauder to maintain its full-year financial results as of June 2017 is expected to remain unchanged. Excluding restructuring charges, Estee Lauder expects full-year earnings of $ 3.38 to $ 3.44 per share, while sales are expected to grow 6 to 7 percent, or about $ 12 billion.