DOW JONES NEWSWIRES
Estee Lauder Cos. (EL) will close the global wholesale
distribution of its Prescriptives brand by the end of January, as
the beauty-products company tightens its focus on areas with the
best growth potential.
The beauty-products company said it would record a charge of $35
million to $40 million in connection with Thursday's action. The
company said its fiscal-2010 sales and earnings targets, excluding
the charges, are unchanged.
An Estee Lauder spokeswoman said the company was trying to place
as many affected employees as possible into open positions. The
company doesn't break out the revenue figures of the Prescriptives
brand.
The company will continue to sell the brand online for U.S.
customers at www.prescriptives.com while inventory lasts. The
products are currently sold in the U.S., Canada, the U.K., Ireland
and Australia.
Estee Lauder, which has been reviewing its underperforming
brands, last month reported it swung to a fiscal fourth-quarter
loss due to restructuring charges and weak sales. The company also
projected better-than-expected fiscal first-quarter results, but
its full-year outlook was in line with analyst estimates at the
time.
Shares were inactive in after-hours trading, after closing down
7 cents to $35.42 in the regular session.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com