Estee Lauder (EL)

NEW YORK--(BUSINESS WIRE)--
The Estée Lauder Companies Inc. (NYSE: EL) today announced that
financial results for its second quarter ended December 31, 2009, will
exceed the Companyâ??s previous expectations. Based on preliminary
indications, the Company now expects reported net sales growth of
between 10% and 11% and diluted net earnings per share of between $1.23
and $1.30. Charges associated with restructuring activities are expected
to be minimal for the quarter.

The higher-than-anticipated results stem from stronger net sales,
favorable product mix and the positive effect of continued cautious
spending. The improved sales reflected continued strong growth in Asia,
successful new innovation, and better-than-expected results from the
Companyâ??s travel retail business and the holiday season in the United
States. Sales also benefited from further favorability in foreign
currency translation.

The lower spending versus plan, which continued from the fiscal first
quarter, reflected the Companyâ??s measured approach to investing,
particularly in advertising and promotion, in light of the global
economic downturn, and several external potential risks, such as the
H1N1 pandemic, which have not materialized in the quarter.

In the second quarter results, we expect to include impairment charges
related to two of the Companyâ??s underperforming business units. To
sustain competitiveness, for the remainder of the fiscal year, the
Company plans to accelerate investment spending well above first-half
levels behind its brands and key priorities.

The Company will release fiscal 2010 second quarter financial results
and host a conference call on Thursday, January 28, 2010. During the
conference call and simultaneous webcast, which will begin at 9:30 a.m.
(ET), the Company will discuss the results, future prospects and recent
corporate developments. Interested parties may listen to the call by
dialing (888) 294-4716. International callers should dial (706)
902-0101. The webcast will be accessible from the "Investors� section of
the Companyâ??s website, www.elcompanies.com,
and will be archived on the site.

Forward-Looking Statements

The forward-looking statements in this press release, including those
containing words like â??expect,â? â??plan,â? â??could,â? â??anticipateâ? and
â??estimateâ? involve risks and uncertainties. Factors that could cause
actual results to differ materially from those forward-looking
statements include the following:

(1) increased competitive activity from companies in the skin care,
makeup, fragrance and hair care businesses, some of which have greater
resources than the Company does;

(2) the Companyâ??s ability to develop, produce and market new products on
which future operating results may depend and to successfully address
challenges in the Companyâ??s business;

(3) consolidations, restructurings, bankruptcies and reorganizations in
the retail industry causing a decrease in the number of stores that sell
the Companyâ??s products, an increase in the ownership concentration
within the retail industry, ownership of retailers by the Companyâ??s
competitors and ownership of competitors by the Companyâ??s customers that
are retailers and our inability to collect receivables;

(4) destocking and tighter working capital management by retailers;

(5) the success, or changes in timing or scope, of new product launches
and the success, or changes in the timing or scope, of advertising,
sampling and merchandising programs;

(6) shifts in the preferences of consumers as to where and how they shop
for the types of products and services the Company sells;

(7) social, political and economic risks to the Companyâ??s foreign or
domestic manufacturing, distribution and retail operations, including
changes in foreign investment and trade policies and regulations of the
host countries and of the United States;

(8) changes in the laws, regulations and policies (including the
interpretation and enforcement thereof) that affect, or will affect, the
Companyâ??s business, including those relating to its products, changes in
accounting standards, tax laws and regulations, trade rules and customs
regulations, and the outcome and expense of legal or regulatory
proceedings, and any action the Company may take as a result;

(9) foreign currency fluctuations affecting the Companyâ??s results of
operations and the value of its foreign assets, the relative prices at
which the Company and its foreign competitors sell products in the same
markets and the Companyâ??s operating and manufacturing costs outside of
the United States;

(10) changes in global or local conditions, including those due to the
volatility in the global credit and equity markets, natural or man-made
disasters, real or perceived epidemics, or energy costs, that could
affect consumer purchasing, the willingness or ability of consumers to
travel and/or purchase the Companyâ??s products while traveling, the
financial strength of the Companyâ??s customers, suppliers or other
contract counterparties, the Companyâ??s operations, the cost and
availability of capital which the Company may need for new equipment,
facilities or acquisitions, the returns that the Company is able to
generate on its pension assets and the resulting impact on its funding
obligations, the cost and availability of raw materials and the
assumptions underlying the Companyâ??s critical accounting estimates;

(11) shipment delays, depletion of inventory and increased production
costs resulting from disruptions of operations at any of the facilities
that manufacture nearly all of the Companyâ??s supply of a particular type
of product (i.e., focus factories) or at the Companyâ??s distribution or
inventory centers, including disruptions that may be caused by the
implementation of SAP as part of the Companyâ??s Strategic Modernization
Initiative or by restructurings;

(12) real estate rates and availability, which may affect the Companyâ??s
ability to increase or maintain the number of retail locations at which
the Company sells its products and the costs associated with the
Companyâ??s other facilities;

(13) changes in product mix to products which are less profitable;

(14) the Companyâ??s ability to acquire, develop or implement new
information and distribution technologies and initiatives on a timely
basis and within the Companyâ??s cost estimates;

(15) the Companyâ??s ability to capitalize on opportunities for improved
efficiency, such as publicly announced restructuring and cost-savings
initiatives, and to integrate acquired businesses and realize value
therefrom;

(16) consequences attributable to the events that are currently taking
place in the Middle East, including terrorist attacks, retaliation and
the threat of further attacks or retaliation;

(17) the timing and impact of acquisitions and divestitures, which
depend on willing sellers and buyers, respectively, and;

(18) additional factors as described in the Companyâ??s filings with the
Securities and Exchange Commission, including its Annual Report on Form
10-K for the fiscal year ended June 30, 2009.

The Company assumes no responsibility to update forward-looking
statements made herein or otherwise.

The Estée Lauder Companies Inc. is one of the worldâ??s leading
manufacturers and marketers of quality skin care, makeup, fragrance and
hair care products. The Companyâ??s products are sold in over 140
countries and territories under the following brand names: Estée Lauder,
Aramis, Clinique, Prescriptives, Lab Series, Origins, Mâ?¢Aâ?¢C, Bobbi
Brown, Tommy Hilfiger, Kiton, La Mer, Donna Karan, Aveda, Jo Malone,
Bumble and bumble, Darphin,
Michael Kors, American Beauty,
Flirt!, Good Skinâ?¢, Grassroots Research Labs, Sean John, Missoni, Daisy
Fuentes, Tom Ford, Coach and Ojon.

An electronic version of this release can be found at the Companyâ??s
website, www.elcompanies.com.

Source: The Estée Lauder Companies Inc.