(RTTNews) - Beauty and personal care products maker Estée Lauder Cos., Inc. (EL: News ) reported Friday that profit for the first quarter of fiscal 2010 climbed significantly from last year, reflecting higher margins and lower expenses amid progress in the company's strategic initiatives and cost discipline drives, despite a 4% sales decline.

Adjusted earnings per share for the quarter soared and significantly topped analysts' expectations as well as the company's original estimates. Quarterly sales grew 4% and also beat consensus estimate. Additionally, the company provided earnings guidance for the second quarter, and raised its earnings forecast for the full-year 2009. Following the announcement, the company's stock is trading up nearly 9%.

The company noted that it was able to outperform its original expectations because of better-than-anticipated sales and lower spending levels in each of the company's product categories and geographic regions, despite the continuing challenging and volatile economic conditions.

In a statement, president and chief executive officer, Fabrizio Freda said, "Our strong performance this quarter is an encouraging start to our fiscal year and to achieving our long-term strategy and financial goals. We capitalized on our solid pipeline of innovative products, initial improvements in certain areas of our business and increased cost discipline, which led to a significant improvement in operating margin. We believe we gained share globally in much of our distribution this quarter."

First Quarter Results

The New York-based company posted net earnings of $140.7 million or $0.71 per share for the first quarter, sharply up from $51.1 million or $0.26 per share in the year-ago quarter.
The results for the latest quarter include returns and charges associated with restructuring activities of after-tax $27.3 million or $0.14 per share. Excluding returns and charges, adjusted net earnings for the quarter climbed to $168.0 million or $0.85 per share from $51.2 million or $0.26 per share in the year-ago quarter.

On average, seventeen analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share in the first quarter. Analysts' estimates typically exclude special items.

Earlier in the month, the company stated that it expected adjusted earnings for the first quarter, before restructuring-related charges, to be "significantly higher" than forecast, citing better-than-anticipated net sales and cautious spending. However, the company also warned it remains cautious regarding the economic climate and consumer spending throughout the year despite stronger-than-anticipated first quarter results.

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