Estee Lauder 1Q Profit More Than Doubles

MAE ANDERSON

NEW YORK (AP) — A strong relaunch of a skin-care line and better-than-expected sales at airport stores helped Estee Lauder Cos. more than double its fiscal first-quarter profit, the company said Friday, but it remained cautious on the upcoming holiday season.

Investors were less cautious, sending shares up 8 percent by midday Friday and at one point touching a 52-week high.

Overall sales were relatively flat excluding the stronger dollar. They grew in Asia, were flat in Europe and slightly down in the U.S. But the company cut costs during the quarter, the first quarter of a four-year plan to improve operating margins. The better-than-expected sales combined with lower expenses helped the company significantly beat its own expectations.

Estee Lauder, whose brands include namesake Estee Lauder and Clinique, also raised its full-year forecast.

The new Estee Lauder Advanced Night Repair anti-aging skin care line launched in 140 countries in July, and was particularly popular in China, Fredo said. An ounce of the line's synchronized recovery complex serum costs $47.50

"The product has a high gross margin and helped drive the brand gains in global skincare sales and operating income," said CEO Fabrizio Freda said in a statement.