Lauder’s Profits Rise Despite Weak Sales

Estee Lauder Cos. Inc. today reported higher quarterly profit as strong sales in Europe and Asia offset weakness in the U.S.

Earnings rose to $93.9 million, or 45 cents a share, in the third quarter ended on March 31 from $59.5 million, or 28 cents a share, a year earlier.

Analysts on average had expected profit of 46 cents a share, according to Reuters Estimates.

Sales increased 7.1 percent to $1.69 billion from $1.58 billion. Makeup and skin care sales rose, but the New York-based company cited weakness in its core brands and in the domestic market.

“More than half of sales and operating income was generated outside the United States from a mix of established and emerging markets,” Chief Executive William Lauder said in a statement.

U.S. sales, which fell 1.5 percent to $856.9 million, could pressure the company’s shares, Bear Stearns analyst Justin Hott said in a research note to investors following the company’s announcement.

“In a quarter where most companies in the sector beat guidance, this result will disappoint, especially after a big run in Estee Lauder shares,” he wrote.