Estee Lauder forecasts annual profit above estimates on strong China demand

The company's quarterly sales of $3.63 billion were also ahead of the estimate of $3.54 billion.

Aug. 19 (Reuters) - Estee Lauder forecast annual profit above Wall Street estimates on Wednesday, betting on sustained spending on premium fragrances and strong performance in key markets such as China, reflecting persistent gains from its CEO's turnaround strategy.

Resilient spending by affluent and younger customers, especially on trendy items, has helped boost demand for the cosmetics maker's luxury fragrances and skincare products such as Le Labo and Balmain Beauty.

To sustain that momentum, Estee has accelerated premium product launches, streamlined supply chain and ramped up investments in innovation and marketing under CEO Stephane de La Faverie's "Beauty Reimagined" strategy.

The Clinique and M.A.C owner, whose merger conversations with Jean Paul Gaultier-owner Puig collapsed in May, expects 2027 adjusted earnings per share in the range of $3.10 to $3.35, with its midpoint above analysts' average estimate of $3.18 per share, according to data compiled by LSEG.