Shares of beauty products and accessories maker Estee Lauder (EL) were taking a hit on Thursday after the company reported fiscal first-quarter earnings and sales that beat analysts' forecasts amid robust international sales of its makeup and skin care products, particularly in China, but issued outlooks for its second-quarter and fiscal year below expectations.
The New York-based company said it earned $598 million, or $1.61 a share, in the three months ended Sept. 30, up from $502 million, or $1.34 a share, a year earlier. Analysts surveyed by FactSet had been looking for earnings of $1.60 a share. Revenue came in at $3.9 billion, up from $3.5 billion a year ago and above analysts' forecasts.
Strong international sales, particularly in China and other emerging markets, as well as within the company's skin care category, travel retail and online channels all helped propel earnings for the quarter, CEO Fabrizio Freda said in a statement.
While mindful of global factors that could dent its business, including the ongoing U.S.-China trade war, Brexit, economic uncertainty and currency volatility, the company said it now expects second-quarter earnings per share of between $1.83 and $1.86, and full-year per-share earnings of between $5.85 and $5.93, both below analysts' forecasts.
The company also said it will be taking charges "associated with previously approved restructuring and other activities" of approximately $110 million to $125 million in fiscal, equal to between 24 cents and 27 cents a share.
Shares of Estee Lauder were down 4.73%, or $9.15 a share, at $184.12 in morning trading on Thursday.