Increased sales of its make up and skin care products internationally has assisted Estee Lauder return to profitability in quarter four.
However, a weak full-year overview has meant shares are down 4 per cent in premarket trading.
Cosmetics manufacturers are having to deal with a drop in consumer spending on makeup due to increased unemployment and an uncertain economy.
Estee Lauder makes the majority of its revenue from outside America and is undergoing a restructuring programme which involves slashing costs and shutting down units which are underperforming.
As well as namesake products, Estee Lauder's brands include MAC, Aveda, Clinique, Jo Malone and Prescriptives.
Net income for quarter four ended on June 30 and totalled $23.9 million, or 12 cents per share, in contrast to a loss of $17.9 million, or 9 cents per share, 12 months previously.
Revenue increased by 9 per cent to $1.8 billion from $1.68 billion in 2009. Analysts anticipated $1.83 billion in revenue.
Revenue increased with the company's make up, skin care and hair care categories whilst fragrance revenue dropped.
Makeup and Skin Care Revenue Assist Estee Lauder Accomplish Profitability
Thu, 12 Aug 2010
