The Est?e Lauder Companies has announced that it expects its financial results for its second quarter ended December 31, 2009, to exceed its previous expectations, following 'strong growth in Asia, successful new innovation, and better-than-expected
results from the company's travel business and holiday season in the United States.'
The company says that based on preliminary indications, it now expects reported net sales growth of between 10% and 11% and diluted net earnings per share of between $1.23 and $1.30. Charges associated with restructuring activities are expected to be minimal for the quarter.
The company added that its higher-than-anticipated results stem from stronger net sales, a favourable product mix and the positive effect of continued cautious spending. Sales also benefited from further favourability in foreign currency translation.
The lower spending versus plan, which continued from the fiscal first quarter, reflected the company's measured approach to investing, particularly in advertising and promotion, in light of the global economic downturn, and several external potential risks, such as the H1N1 pandemic – which have not materialized in the quarter.
The company said: ‘In the second quarter results, we expect to include impairment charges related to two of the Company's underperforming business units. To sustain competitiveness, for the remainder of the fiscal year, the Company plans to accelerate investment spending well above first-half levels behind its brands and key priorities’.
The Est?e Lauder Companies' fiscal 2010 second quarter financial results will now be released on Thursday, January 28, 2010.