Estee Lauder forecast trails estimates as skincare struggles

New York - Estee Lauder Companies forecast full-year profit that trailed analysts’ estimates as restructuring costs and softer sales of skin-care products weigh on earnings.

Profit will be $3.38 to $3.44 a share, excluding some items, in the year through June, the New York-based company said Friday in a statement. Analysts projected $3.53, on average.

The beauty company is going through a multiyear restructuring that entails cutting as many as 1 200 jobs to free up resources that it can invest in research and development as well as new technology.

Estee Lauder may be hurt by the planned closure of 100 stores of Macy’s, its biggest customer, which contributed about 10% of sales in the past few years, said Stephanie Wissink, an analyst at Piper Jaffray.

Estee Lauder’s fourth-quarter profit topped analysts’ expectations. Earnings were 43 cents a share, excluding some items, beating the 40-cent average estimate.

Revenue was $2.65bn, just missing the $2.66bn average projection, hurt by a 0.7% drop in skin-care sales.

Excluding currency effects, skin-care sales would have risen about 3%.

The shares fell 0.1% to $95 at 7:06 a.m. in early trading in New York. Estee Lauder had gained 8 percent this year through on Thursday.