NEW YORK -- Cosmetics maker Estee Lauder (EL) said Thursday fiscal second-quarter profit fell 30%, hurt by the stronger dollar and weak consumer spending environment, and said it would cut 2,000 workers as part of a restructuring.
Profit for the quarter ended Dec. 31 fell 30% to $158 million, or 80 cents per share, from $224.4 million, or $1.14 per share last year.
Revenue fell 12% to $2.04 billion from $2.31 billion last year.
Analysts polled by Thomson Reuters, on average, predicted a profit of 77 cents per share on revenue of $2.04 billion.Sales fell across all categories, with skin care sales down 7%, makeup down 12% and fragrance down 20%. The company said it plans to begin a four-year restructuring plan that will include cutting 2,000 staffers, or 6% of the work force, freezing merit raises and continuing its hiring freeze. It will also cut costs and inventory and realign its geographic regions. The plan will cost $350 million to $450 million over the next several years. The company also said Thursday that the weak retail environment will likely continue to hurt results, forecasting fiscal third-quarter earnings below expectations.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV