(Bloomberg) -- Estee Lauder Cos. forecast full-year profit that trailed analysts’ estimates as restructuring costs and softer sales of skin-care products weigh on earnings.
Profit will be $3.38 to $3.44 a share, excluding some items, in the year through June, the New York-based company said Friday in a statement. Analysts projected $3.53, on average.
The beauty company is going through a multiyear restructuring that entails cutting as many as 1,200 jobs to free up resources that it can invest in research and development as well as new technology. Estee Lauder may be hurt by the planned closure of 100 stores of Macy’s Inc., its biggest customer, which contributed about 10 percent of sales in the past few years, said Stephanie Wissink, an analyst at Piper Jaffray Cos.
Estee Lauder’s fourth-quarter profit topped analysts’ expectations. Earnings were 43 cents a share, excluding some items, beating the 40-cent average estimate. Revenue was $2.65 billion, just missing the $2.66 billion average projection, hurt by a 0.7 percent drop in skin-care sales. Excluding currency effects, skin-care sales would have risen about 3 percent.
The shares fell 0.1 percent to $95 at 7:06 a.m. in early trading in New York. Estee Lauder had gained 8 percent this year through Thursday.
To contact the reporter on this story: Stephanie Wong in New York at firstname.lastname@example.org. To contact the editors responsible for this story: Nick Turner at email@example.com, Kevin Orland, Molly Schuetz
©2016 Bloomberg L.P.