Estee Lauder sees robust U.S. sales growth

The Estee Lauder Cos.' improving sales in the United States, continued international strength and cost-cutting pushed its first-quarter net income up a surprisingly strong 36 percent.

The beauty products maker on Friday raised its adjusted net income expectations for the year.

Increased advertising the quarter before helped spur sales, chief executive Fabrizio Freda said.

Net income rose to $191.1 million, or 95 cents per share, from $140.7 million, or 71 cents per share last year. Net income totaled 97 cents excluding restructuring charges. That beat analyst expectations of 77 cents per share, according to a poll by Thomson Reuters.

Revenue rose 14 percent to $2.09 billion from $1.83 billion.

Analysts expected $2.02 billion. Revenue for skin care, makeup and perfume all rose, and revenue rose across geographic regions.

Revenue from its travel stores, mainly in airports, and emerging markets was particularly strong, the company said.

Skin-care revenue rose 17 percent ot $857.7 million, helped by sales of its Advanced Night Repair Eye Synchronized Complex and its Hydrationist Maximum Moisture cream.

Makeup revenue rose 11 percent to $794.2 million as revenue from the Americas and Europe improved.

Revenue from the Americas, Europe, the Middle East & Africa and Asia Pacific all rose in the double digits.

Estee Lauder, whose other brands include Clinique and MAC, expects second-quarter adjusted net income between $1.32 and $1.45 per share on a revenue gain of 8 percent to 10 percent. Analysts expect $1.37 per share.

For the year, the company now expects adjusted net income of $2.90 and $3.10, up from prior guidance of $2.80 to $3.05 per share. Analysts expect $3.07 per share.

Estee Lauder fared better than other beauty product makers reporting earnings this week. On Thursday, Avon Products Inc. said its net income rose 7 percent in its third quarter, but earnings missed expectations as the company spent more on advertising and revenue from China sank. And Revlon said its net income dropped 46 percent as U.S. sales remained weak.