Estée Lauder (NYSE: EL) reported Q3 EPS of $0.91, $0.18 better than the analyst estimate of $0.73. Revenue for the quarter came in at $2.86 billion versus the consensus estimate of $2.81 billion.

Outlook for Fiscal 2017 Full Year

Global prestige beauty remains a vibrant industry estimated to grow approximately 4% to 5%. There are risks related to social and political issues, terrorism, currency volatility and economic challenges affecting consumer behavior in certain countries. We are also cautious of the decline in retail traffic, primarily related to brick-and-mortar stores and certain tourist-driven doors in the United States. The Company’s annual growth has consistently outpaced global prestige beauty and, despite these global issues, is expected to continue to grow at least one percentage point ahead of the industry for the fiscal year, which is our strategic goal.

The Company expects sales growth to continue to progressively accelerate during its fiscal fourth quarter driven by strong innovation programs, greater outreach to target consumers for our fast-growing brands in winning channels, regular price increases, organic growth, easier comparisons in certain markets, improvement in Hong Kong, and accelerating incremental sales from recent acquisitions.

Full Year Fiscal 2017

• Net sales are forecasted to increase between 4% and 5% versus the prior-year period.
• Foreign currency translation is expected to negatively impact sales by approximately 2% versus the prior-year period.
• Net sales are forecasted to grow between 6% and 7% in constant currency.
• The Company’s recent acquisitions of Too Faced and BECCA are forecasted to contribute approximately 2 percentage points to the Company’s overall sales growth. These acquisitions are estimated to dilute earnings per share by approximately $.07.
• Reported diluted net earnings per share are projected to be between $3.02 and $3.09.
• The Company expects to take charges associated with previously approved restructuring and other activities in fiscal 2017 of approximately $160 million to $170 million, equal to $.28 to $.30 per diluted common share.
• Diluted net earnings per share before charges associated with restructuring and other activities are projected to be between $3.32 and $3.37.
• The negative currency impact on the sales growth equates to about $.13 of earnings per share. On a constant currency basis, before charges associated with restructuring and other activities, diluted earnings per share are expected to increase between 8% and 9%.

Highlights

• Reported Net Sales Rose 8%, Constant Currency Net Sales Increased 9% –
• Reported EPS $.80, Adjusted EPS $.91 –
• Company On Track To Deliver Strong Full-Year Results –

For earnings history and earnings-related data on Estée Lauder (EL) click here.