Estee Lauder 2Q profit falls, will cut (2000) jobs

[Pale Blue Dot]

Source: Business Week

Cosmetics maker The Estee Lauder Cos. said Thursday fiscal second-quarter profit fell 30 percent, hurt by the stronger dollar and weak consumer spending environment. The company will also cut 2,000 workers as part of a restructuring.

Profit for the quarter ended Dec. 31 fell 30 percent to $158 million, or 80 cents per share, from $224.4 million, or $1.14 per share last year.

Revenue fell 12 percent to $2.04 billion from $2.31 billion last year.

Analysts polled by Thomson Reuters, on average, predicted a profit of 77 cents per share on revenue of $2.04 billion.

Sales fell across all categories, with skin care sales down 7 percent, makeup down 12 percent and fragrance down 20 percent.

President and Chief Operating Officer Fabrizio Freda said he has noticed consumers are delaying purchases or simply going without for a while, especially in the fragrance category. Skin care, he said, is typically more resilient because consumers still have certain preferences and prefer to keep their skin care routine as is.

Read more: http://www.businessweek.com/ap/financialnews/D965IO480.htm

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I remember a few months ago somebody on these boards saying that his job was safe because he was in the fragrance industry. While I sincerely hope he hasn't lost his job, it is extremely naive to assume that ANY jobs are "safe" in this economy.

[eilen]

1. Estee Lauder is too expensive.

Since we are a union family, I prefer to frequent American companies. I order my cosmetics through http://www.aromaleigh.com">Aromaleigh

They are better than Bare Minerals.