Skin care, makeup revenue helps Estee Lauder 4Q
12.08.10
NEW YORK — More wisely sales of higher-priced skin care products such as a Clinique skin-tone corrector helped cosmetics maker Estee Lauder come back a fourth-quarter profit, the company said Thursday.
Its full-year net income doubled as revenue rose 6 percent, but it said rising ad spending will cut into its first-quarter profit, and its shares dipped.
Huge U.S. unemployment and a shaky economy have hit cosmetics makers, and Estee Lauder is restructuring to cut costs. The company said the efforts, including reducing its offerings 10 percent this year, saved it $364 million in economic 2010.
CEO Fabrizio Freda said on a call with analysts that demand has been improving.
"In the last several months, prestige beauty sales in North America activity be contingent stores have made significant improvements as consumer spending has picked up," he said.
"When they can afford something, need something or are inspired by something, they are back buying," Freda added in an vetting with The Associated Press. "But consumer sentiment is still low, so I would define the U.S. consumer as improving but not yet back."
Source: The Associated Press