Smashbox, MAC gloss up Estee Lauder profit

Cosmetics maker Estee Lauder reported a better-than-expected quarterly profit, helped by strong demand for its M.A.C. and Smashbox makeup brands in its international markets.

The company said demand for its makeup was driven by new products as well as expanded distribution in retail channels in markets including the United Kingdom, Italy and the Middle East.

Sales in the makeup division, the company’s biggest source of revenue in the third quarter, rose 7 per cent to $1.16 billion.

Estee Lauder also said it would implement a new restructuring plan aimed at cutting costs and improving research and development, supply chain and its e-commerce business. The company said it would cut between 900 to 1,200 jobs globally, or 2.5 per cent of its workforce, as part of the plan, and incur $600 million-$700 million in restructuring and other charges. Net sales rose 3 percent to $2.66 billion in the quarter ended March 31. The net income attributable to the company fell to $265.6 million from $272.1 million. On a per share basis, profit was unchanged at 71 cents per share compared with a year earlier as the company had a lower share count in the latest quarter.

Reuters