Cosmetics company Estée Lauder has managed a higher second quarter turnover increase than previously expected. A higher demand for its skin care products helped boost its turnover.
Estee Lauder still believes it will have a turnover drop for its full fiscal year, which ends on 30 June, compared to the year before. It blames the strong American dollar and slow growth in China and Hong Kong.
The value of the dollar has grown nearly 20 % since mid-2014 and that has had its effect on a lot of companies's foreign sales. For example, Estée Lauder generates 60 % of its net profit outside of the United States.
Previously, Estée Lauder had forecast a 1 % turnover growth for the full fiscal year (at most), but it now believes it will experience a 2 % in turnover. On the other hand, its second quarter turnover grew 1 % to 3.04 billion dollars (2.65 billion euro), while analysts had expected 3.01 billion dollars.