Fashion Giant Estee Lauder Hit By Shifting Retail Landscape – Short Positions Favoured
Estee Lauder Companies reported fiscal fourth-quarter earnings that fell shy of forecasts and provided a dim outlook for the next business year given the falling traffic at department stores and expenses related to its restructuring plans.
In the three-month period ended in June, the New York-based company’s profit came in at $93.5 or 25 cents per share, down from $153.0 million, or 40 cents a share, in the same period a year ago. Excluding restructuring charges and other items, earnings edged up to 43 cents from 40 cents earlier, but failed to beat estimates of 48 cents per share. Revenue rose to $2.65 billion from $2.52 billion a year earlier, helped by a 10% jump in makeup sales which helped offset a 2% decline in its fragrance category.
For the next fiscal year, the company expects EPS to be within the range from$3.38 to $3.44. This excludes restructuring costs. The range is below the level of $3.53 analysts have projected. Sales is forecast to rise about 6% to roughly $12 billion, short of the median analyst estimate of $12.8 billion.
Sell Stop at 91.70, Take profit at 91.00, Stop loss at 92.50