Source: Company reports

SALES BY PRODUCT CATEGORY

Skin care sales were down 3% on a reported basis, to $1.07 billion, versus consensus of $1.10 billion. The decrease was due to the unfavorable impact of foreign currency translation. Within the category, the e-commerce channel and the La Mer business were up by double digits. Origins sales were strong, while Estée Lauder and Clinique sales were weaker. Makeup sales were $1.16 billion versus expectations of $1.13 billion. On a reported basis, makeup sales were up 7%, driven by double-digit growth from MAC, Smashbox and Tom Ford, as well as by gains from Bobbi Brown. Revenues in the fragrance category were up 5% on a reported basis, to $275.2 million, versus consensus of $269.4 million. Sales were driven by double-digit increases from Jo Malone London and Tom Ford, which were partially offset by declines within Estée Lauder and other fragrance brands. Hair care sales were up 1% on a reported basis, to $127.3 million, versus consensus of $131.2 million. Sales were driven by expanded distribution and incremental product launches.

SALES BY GEOGRAPHY

Revenues in the Americas were flat on a reported basis, at $1.11 billion, versus consensus of $1.14 billion. Sales in Canada and Latin America were up by double digits, although they were significantly impacted by foreign exchange. In the US, Tom Ford, Jo Malone and Smashbox led growth, and La Mer and Bobbi Brown posted solid growth. Revenues for the Europe, Middle East and Africa region were up 8% on a reported basis, to $1.02 billion, versus consensus of $991.9 million. The UK, the Nordic region and Italy led growth, and a number of emerging markets, including the Middle East, Central Europe, South Africa and Russia, performed strongly. Sales in the Asia-Pacific region were flat on a reported basis, at $521.5 million, versus consensus of $519.5 million. Sales in constant currency increased in every country except Hong Kong. South Korea, Japan, Australia and Taiwan all saw double-digit growth in constant-currency terms. Full-year guidance calls for EPS of $3.09–$3.14, which is above prior guidance of $3.07–$3.12. Guidance for sales growth of 7%–8% on a constant-currency basis is consistent with prior guidance.