Estée Lauder (EL) Profits Surge 62% On International Demand

Estée Lauder Companies Inc. (NYSE: EL), the maker of beauty product lines such as M*A*C and Clinique, reported a 62% jump in 2nd fiscal quarter profit on Thursday.

Estée Lauder's profit for the 2nd fiscal quarter ending on December 31 was $256.2 million, or $1.28 per share, up from $158 million, or 80 cents per share.

The company earned slightly more than the $1.21 per share that analysts had predicted, according to FactSet Research.

Profits were boosted by strong demand in Asia and Europe, better than expected holiday sales, strong growth in airport shops and the release of more profitable products.

Analysts believed that since Estée Lauder department store customers such as Macy's Inc. (NYSE: M) and Saks Inc. (NYSE: SKS) were reporting sales growth, Estee Lauder's sales should rise with them.

According to BMO Capital Markets analyst Connie Maneaty, "most of its brands appear healthy and even though recessionary risks remain, there is continued strength in Asia, travel retail is rebounding, and the U.S. shows somewhat improving trends."