(Reuters) -Estee Lauder Cos Inc bumped up its annual revenue and profit projections on Thursday as consumers returning to in-person events splurged on its foundations and MAC lipsticks.
Sales of the cosmetics maker rose in every region in the last three months of 2021, powering second-quarter earnings above Wall Street expectations.
“Despite accelerated volatility and variability, as well as supply chain challenges, from the pandemic. Every category, region and major channel expanded,” Chief Executive Officer Fabrizio Freda said.
After suffering a decline during the depths of the pandemic, sales of the company have bounced back in recent quarters thanks to demand from consumers who are venturing out more to parties and gatherings after the easing of pandemic restrictions.
The La Mer beauty products maker expects reported net sales to rise between 13% and 16% for the full year, compared with its previous forecast of a 12% to 15% increase.
It sees adjusted annual profit of between $7.43 and $7.58 per share, up from $7.23 to $7.38 per share previously.
The company said demand for skin care, fragrance and hair care has grown from pre-pandemic levels, but make up sales continue to be below 2019 figures despite a significant recovery.
Estee also continues to face pressure from higher costs wrought by industry wide supply chain problems and raw material inflation.
It forecast current-quarter adjusted profit between $1.55 and $1.65 per share, below expectations of $1.92, according to Refinitiv IBES data.
(Reporting by Ananya Mariam Rajesh and Aditi Sebastian in Bengaluru; Editing by Aditya Soni)
