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NEW YORK, United States — Cosmetics maker Estée Lauder Cos Inc. reported a better-than-expected quarterly profit, helped by strong demand for its MAC and Smashbox makeup brands in its international markets.
The company said demand for its makeup was driven by new products as well as expanded distribution in retail channels in markets including the United Kingdom, Italy and the Middle East.
Sales in the makeup division, the company's biggest source of revenue in the third quarter, rose seven percent to $1.16 billion.
Estée Lauder also said it would implement a new restructuring plan aimed at cutting costs and improving research and development, supply chain and its e-commerce business.
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The company said it would cut between 900 to 1,200 jobs globally, or 2.5 percent of its workforce, as part of the plan, and incur $600 million-$700 million in restructuring and other charges.
Net sales rose three percent to $2.66 billion in the quarter ended March 31.
The net income attributable to the company fell to $265.6 million from $272.1 million.
On a per share basis, profit was unchanged at 71 cents per share compared with a year earlier as the company had a lower share count in the latest quarter.
Excluding items, Estée Lauder earned 73 cents per share.
Analysts on average had expected earnings of 61 cents per share and sales of $2.66 billion, according to Thomson Reuters.
By: Yashaswini Swamynathan and Ramkumar Iyer; editors: Savio D'Souza and Maju Samuel.
