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Estée Lauder Makeup net sales rise in Q1

Oct '05
Leading cosmetic company The Estée Lauder Companies Inc reported net sales for its first fiscal quarter ended September 30, 2005 of $1.50 billion, compared with $1.49 billion reported in the prior year. Excluding the impact of foreign currency translation, net sales decreased slightly.

Sales in each product category in the United States, for the quarter ended September 30, 2005, were tempered by weakness at certain retailers, lower sales from Fall promotional programs, and to a lesser extent, the closure of stores in the Southern region caused by the severe weather conditions there as well as the general consumer response to higher energy costs.

The Company reported net earnings from continuing operations for the quarter ended September 30, 2005, of $61.8 million, compared with $95.7 million last year. Diluted earnings per common share from continuing operations for the quarter were $.28 compared with $.41 reported in the prior year.

Results by Product Category
Net sales of skin care products for the quarter were relatively unchanged on a reported basis at $523.4 million, compared with the prior period, and declined 1 percent in local currencies.

In last year's first quarter, skin care net sales grew 13 percent. Skin care benefited from higher sales from new or recent launches by Estée Lauder in the Perfectionist line, such as Perfectionist (CP+), Superdefense Triple Action Moisturizers SPF 25 by Clinique and Modern Friction by Origins.

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