Estee Lauder Cos Inc (NYSE:EL) shares shone in premarket trading, after the company released better-than-expected second quarter numbers and hiked its 2018 full-year adjusted earnings per share guidance.
The skincare and cosmetics big brand name, said in the second quarter, net income dropped to US$123mln or 33 US cents per share, from the US$428mln or US$1.15 per share recorded in the year earlier period.
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The company also incurred a one-time charge of US$394mln under the new tax reform legislation, the company said in its statement released on Friday.
Revenue during the period was boosted by the purchases of Too Faced and Becca Cosmetics, which added 2 percentage points to sales growth, the company said.
Excluding certain items, the company earned US$1.52 per share, comfortably beating market consensus for US$1.44 per share.
Sales up on robust retail travel division
Sales was up 16.7% at US$3.74bn, again nicely beating analysts’ consensus for US$3.68bn.
Estee Lauder hiked its 2018 full year adjusted profit forecast to US$4.27-US$4.32 per share, from its earlier guidance of US$4.04-US$4.12.
It attributed the improved guidance to its robust retail travel segment, which includes sales in duty-free stores and tourist department stores like Harrods, House of Fraser and Le Bon Marche, as well its global online and Asia operations.
"In the holiday season, our brands achieved outstanding results from their e-commerce businesses, and customizable gift options were significant contributors. These elements, along with our accelerating cost saving efforts and our progress executing our Leading Beauty Forward initiatives, resulted in an impressive adjusted 23% earnings per share growth in constant currency," president and chief executive officer Fabrizio Freda said.
In pre-market trade, its shares were up 2.97% at US$138.55.