The leading luxury cosmetics retailer The Estée Lauder Inc. (EL) is geared to put more thrust on Canada with the appointment of Philippe Warnery as General Manager, Canada. Mr. Warnery’s appointment will be effective from Aug 12, 2013.
Prior to the appointment, Warnery served Estée Lauder as Vice President, General Manager, International for the Origins and Ojon brands where he lead EL’s expansion into China, Norway, Sweden, the Netherlands and Mexico. Prior to this, he also placed the Clinique brand in over 20 key airports and duty free locations as Regional Director for Clinique Travel Retail in EL.
He will guide and coordinate the Estée Lauder team in Canada as it is an important strategic focus in North America. Moreover, he will probe into the profitability and growth of EL in the region, build business relationships and evaluate market conditions. Warnery is also expected to focus on locally relevant products, manage operational effectiveness and build capabilities.
On May 2, 2013, Estée Lauder posted third-quarter fiscal 2013 earnings of 45 cents per share (excluding restructuring charges), which climbed 19.0% from 38 cents in the prior-year quarter.
The results were ahead of management’s guidance range of 28 cents to 32 cents. The reported earnings also exceeded the Zacks Consensus Estimate of 33 cents by 36.4%. Profits during the quarter were aided by solid performance in the U.S. and the emerging markets.
Sales in the Americas rose 1.0% to $988.1 million. The sales increased on the back of the growth in the company’s makeup artist brands and Aveda as well as a favorable year-over-year comparison due to a sales return in the prior year. On a constant currency basis, sales increased 2% in the region.
Guidance
For fiscal 2013, earnings per share excluding restructuring charges are projected in the range of $2.56 to $2.61 compared to the $2.51 to $2.0 range previously. Net sales are expected to increase between 6% in constant currency.
Recommendation
Headquartered in New York, Estée Lauder engages in the manufacture and sale of skin care, makeup, fragrance and hair care products and carries a Zacks Rank #3 (Hold). Nuskin Enterprises Inc. (NUS) carrying a Zacks Rank #1 (Strong Buy) and Avon Products Inc. (AVP) and Inter Parfums Inc. (IPAR), both carrying a Zacks Rank #2 (Buy), are worth considering in the industry.
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