This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Estée Lauder Companies Reports Solid Fiscal 2013 Second-Quarter Results

The Estée Lauder Companies Inc. (NYSE: EL) today reported net sales for its second quarter ended December 31, 2012 of $2.93 billion, a 7% increase compared with $2.74 billion in the prior-year quarter. Excluding the impact of foreign currency translation, net sales also increased 7% from a year ago. These results were delivered against a 10% local currency sales increase in the prior-year quarter and continued softness in certain markets, particularly Southern Europe and Korea. The Company reported a 50-basis-point increase in operating margin and net earnings for the quarter rose 13% to $447.5 million, compared with $396.7 million last year. Diluted net earnings per common share rose 13% to $1.13, compared with $1.00 reported in the prior year. All mention of net earnings in the body of this release refers to net earnings attributable to The Estée Lauder Companies Inc., which reflects the adjustment for noncontrolling interests.

The fiscal 2013 second-quarter results included returns and charges associated with restructuring activities of $14.6 million ($9.5 million after tax), equal to $.02 per diluted common share. The fiscal 2012 second quarter results included returns and charges associated with restructuring activities of $6.1 million ($4.4 million after tax), equal to $.01 per diluted common share.

Excluding these returns and charges in the second quarters of fiscal 2013 and 2012, net sales for the three months ended December 31, 2012 increased 7% to $2.93 billion and net earnings rose 14% to $457.0 million. Diluted net earnings per common share rose 14% to $1.16, versus a comparable $1.01 in the prior-year period. A reconciliation between GAAP and non-GAAP financial measures is included in this release.

In the second quarter of fiscal 2013, some retailers accelerated their orders in advance of the Company’s January 2013 implementation of SAP at certain of its locations and brands. Those additional orders amounted to approximately $94 million in sales that would have likely occurred in the Company’s fiscal 2013 third quarter. These orders, while planned, were above the Company’s expectations. Similarly, the Company’s fiscal 2012 second quarter included approximately $30 million of sales resulting from accelerated retailer orders in advance of the Company’s January 2012 implementation of SAP at certain of its locations. Combined, these actions created a difficult comparison between the fiscal 2013 and fiscal 2012 second quarters of approximately $64 million in sales and $55 million in operating income, equal to $.09 per diluted common share. Excluding the impact of the timing of orders and returns and charges associated with restructuring activities, net sales and operating income would have increased 5% and 2%, respectively, which was better than expected. The impact of these shifts by region and product category is included in this release.

1 of 9

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.70 0.75%
FB $102.24 2.70%
GOOG $694.50 2.40%
TSLA $149.15 0.61%
YHOO $27.52 2.60%


Chart of I:DJI
DOW 16,124.67 +110.29 0.69%
S&P 500 1,879.12 +26.91 1.45%
NASDAQ 4,365.2060 +96.4430 2.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs