NEW YORK (AP) — Makeup and skin care company Estee Lauder Cos. said Thursday that its fiscal third-quarter net income rose 37 percent as a cost-cutting program helped offset weak sales in international markets including Southern Europe and South Korea.
The New York company, which owns its namesake brand as well as Aveda, Clinique and La Mer, has been cutting costs and investing in advertising to help gain market share.
Earnings came in better than expected but revenue missed expectations. Shares rose in morning trading.
Net income attributed to holders of its common shares rose to $178.8 million, or 45 cents per share, for the three months ended March 31, up from $130.4 million, or 33 cents per share, a year ago.
Analysts expected earnings of 33 cents per share, according to FactSet.
Revenue rose 2 percent to $2.29 billion from $2.25 million a year ago. Analysts expected $2.33 billion.
Skin care revenue was flat at $1.02 billion. Makeup revenue rose 5 percent to $919.2 million. Fragrance revenue rose 1 percent to $233.2 million and hair care revenue rose 6 percent to $116.2 million.
Revenue rose across all regions. Revenue from the Americas rose 1 percent to $988.1 million, helped by strength in makeup and Aveda. Strength in Latin America helped offset weakness in the U.S. and Canada.
Revenue rose 3 percent in Europe, the Middle East and Africa to $847.9 million. It rose 1 percent in the Asia/Pacific region to $455.8 million.
The company raised its full year guidance, excluding one-time items, to $2.56 to $2.61 per share, from prior guidance of $2.51 to $2.59 per share. Analysts expect earnings of $2.59 per share.
Shares rose 95 cents, or 1.4 percent, to $69.71 in morning trading. That is closer to the high end of the stock's 52-week trading range of $49.81 to $70.90.