Cosmetics maker Estee Lauder today reported a 33 per cent plunge in quarterly profits after being hit by one-off charges of nearly $60 million (£32m) relating to cost-cuts, disposals and a settlement with the US Internal Revenue Service.
Profit for its fourth quarter to June 30 came in at $44.5 million, or 21 cents a share, compared with $66.6 million, or 30 cents a share last year.
Results included 28 cents of charges from cost-saving initiatives including the sale of a unit that sold Stila brand products.
Excluding those charges, profit was 49 cents per share.
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Quarterly sales rose 5 per cent to $1.6 billion, helped by the launch of new products.
Analysts had predicted a profit of 48 cents per share on revenue of $1.56 billion.
The group has come under pressure as America’s Federated Department Stores, which owns the Macy’s and Bloomingdale’s chains, has closed stores following its acquisition of May Department Stores.
The move cut the number of outlets where Estee Lauder products are sold.