Estée Lauder (NYSE: EL) reported Q2 EPS of $1.13, $0.08 better than the analyst estimate of $1.05. Revenue for the quarter came in at $3.04 billion versus the consensus estimate of $3.01 billion. For the quarter, the negative impact of foreign currency translation on diluted net earnings per common share was $.07. Excluding the impact of foreign currency translation, net sales increased 5% and diluted net earnings per common share increased 10%, which reflects a reduction in the Company’s effective tax rate.

For Q3, net sales are forecasted to increase between 6% and 7% in constant currency and diluted net earnings per share are projected to be between $0.45 and $0.50 The consensus is $0.68.

For FY 2015, Net sales are forecasted to grow between 2% and 3% in constant currency. Diluted net earnings per share, excluding the effect of the accelerated retailer orders, are projected to be between $2.93 to $3.01. This also reflects the negative impact of foreign currency translation and acquisitions. The consensus is $2.84.

Fabrizio Freda, President and Chief Executive Officer, said, “Our successful performance this quarter reflected solid global demand for our brands, including a strong holiday season. Our results further demonstrate our ability to grow despite currency headwinds and softness in several countries. For the quarter, our sales and profits came in higher than planned as we continued to leverage our diverse growth engines and capitalized on high-growth opportunities, which translated into excellent results in several of our higher-margin brands and channels, while efficiently managing costs. Key drivers of our performance were the United Kingdom and emerging markets, our makeup and luxury brands, and online, specialty-multi and freestanding store channels.

“We began the second half of our fiscal year by successfully completing the acquisitions of Editions de Parfums Frédéric Malle and GLAMGLOW. These brands, along with RODIN olio lusso and Le Labo, which we purchased last quarter, complement our portfolio in skin care and luxury fragrance and further strengthen our long-term strategic growth plan.

“Our second half plans call for an acceleration of sales and profit growth supported by a strong innovation pipeline and current product successes, improving trends in our large heritage brands, emerging markets and our high-growth channels and brands. With the agility we have created, we will continue to strategically invest in growth opportunities, even in the face of softness and challenges in certain markets. With half of the year behind us, we are reaffirming our full fiscal year constant currency net sales growth estimate of 5% to 6% and earnings per share of 7% to 10%, excluding the effect of the retailer orders accelerated into fiscal 2014 from the rollout of our Strategic Modernization Initiative.”

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