UPDATE: Estée Lauder Posts Upbeat Q2 Earnings, Issues Weak Forecast

reported better-than-expected earnings for the second quarter and issued a downbeat forecast for 2015. The New York-based company reported quarterly net earnings of $435.7 million, or $1.13 per share, compared to $432.5 million, or $1.09 per share, in the year-ago period. Its net sales climbed to $3.04 billion from $3.02 billion. However, analysts were expecting earnings of $1.05 per share on revenue of $3.01 billion. Fabrizio Freda, President and Chief Executive Officer, said, "Our second half plans call for an acceleration of sales and profit growth supported by a strong innovation pipeline and current product successes, improving trends in our large heritage brands, emerging markets and our high-growth channels and brands. With the agility we have created, we will continue to strategically invest in growth opportunities, even in the face of softness and challenges in certain markets. With half of the year behind us, we are reaffirming our full fiscal year constant currency net sales growth estimate of 5% to 6% and earnings per share of 7% to 10%, excluding the effect of the retailer orders accelerated into fiscal 2014 from the rollout of our Strategic Modernization Initiative." For 2015, the company expects net sales to rise between 2% and 3% in constant currency. It projects diluted net earnings, including the effect of the accelerated retailer orders, the negative impact of foreign currency translation and acquisitions, of $2.72 to $2.80 per share. Analysts expected earnings of $2.83 per share. For the third quarter, the company expects diluted net earnings of $0.45 to $0.50 per share on net sales growth between 6% and 7% in constant currency. Estée Lauder shares fell 2.76% to $70.55 in pre-market trading.