Estee Lauder, Elizabeth Arden Swing to Profit

Estee Lauder Company and Elizabeth Arden Incorporation both increased profits this past fiscal quarter due to an increase in consumer purchases.

Estee Lauder saw a decrease in fragrance purchases and an increase in skin-care products, and as a result, the company reconfigured their pricing; international purchases, especially in Asia (and particularly China), have increased, part of which is due to duty-free stores in airports. Estee Lauder’s fourth-quarter profit was reported to be $23.9 million.

Elizabeth Arden saw an increase of purchases in both departments. Profits can be accounted to higher income-tax benefits due to an increase in those sales, as well as decreasing costs and bettering technology. Elizabeth Arden’s fourth-quarter profit was reported at $2.3 million

Due to markets in other areas of the world, Estee Lauder was able to make a profit this past quarter, as opposed to losing money as in the following year. The increase of travel in Asia, especially China, had great impact on the profits accrued. The duty-free stores in international airports allow foreign consumers to purchase products without being charged extra fees. Seeing the trend in international travel, it would be wise to fill more shelves in more airports with such beauty products; the benefits and profits are evident.

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