Estee Lauder shares jumped after the company boosted its full-year earnings outlook as sales of skincare products boomed in Asia despite concerns about a slowing Chinese economy and a trade war with the US.
The company now sees full-year adjusted earnings per share of $4.92 (€4.30) to $5, up from a previous range of $4.73 to $4.82.
The company’s higher forecast eases fears about a luxury slowdown in China that have persisted in recent months. The outlook builds on LVMH’s strong handbag and cognac sales in that critical luxury market, showing that shoppers are still willing to splash out.
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It has invested in high-growth opportunities in search of more young, trendy shoppers. Acquisitions in recent years include Becca, Le Labo, Kilian and Too Faced, increasing its offerings in specialty beauty stores such as Sephora.
Shares rose as much as 12 per cent in premarket trading. The stock had gained 4.7 per cent this year by Monday’s close, compared with the 8.7 per cent increase in the S&P 500 Index.
– Bloomberg
