Estee Lauder Reports Quarterly Earnings of $23.9 Million

Estée Lauder (EL) reported net earnings of $23.9 million for the quarter ended June 30, compared with a net loss of $17.9 million a year earlier.

Diluted net earnings per common share were 12 cents, the company said in a statement. Net sales rose 9% from a year earlier to $1.84 billion. Adjusted for exchange rates, net sales rose 8%.

The company recorded a pre-tax charge to earnings of $27.3 million for the impact of the extinguishment of debt.

Estée Lauder had net sales of $7.8 billion for the fiscal year ending June 30, a 6% increase from the previous fiscal year. Net earnings for the year were $478.3 million, or $2.38 per share, up from $218.4 million, or $1.10 a share, a year earlier.

"We successfully launched initiatives on our biggest brands, took advantage of improving retail environments, saw international passenger traffic pick up, which helped the strong growth in our travel retail business, and realized greater-than-expected cost savings," CEO Fabrizio Freda said.

Skin care remains the company's largest segment, accounting for $3.2 billion of net sales in fiscal 2010.