NEW YORK: Estee Lauder yesterday forecast full-year revenue and profit above Wall Street expectations, putting to bed concerns of slowing demand in China due to trade tensions and Hong Kong protests as sales of its luxury skin care products soared.
Cosmetic companies like Estee Lauder and L’Oreal are seeing a boom in their business in the Asia-Pacific region, mainly in China, as affluent millennials spend more at beauty retailers and duty-free stores at airports.
Estee Lauder has been selling 10 of its brands including MAC and Tom Ford on Alibaba’s online marketplace Tmall, in a bid to boost its presence in the Asian market.
The efforts helped sales in the Asia-Pacific region grow 18 per cent in the fourth quarter, while sales in the skincare business, its biggest and most profitable, rose 15pc to $1.59 billion, boosted by demand for its premium skincare brands such as La Mer and Clinique.
Estee Lauder expects full-year sales to grow in the range of 7pc to 8pc.
Overall, quarterly net sales rose 9pc to $3.59bn, beating expectations of $3.53bn.