Make Up is not Recession Proof
This twitter thing is already coming in handy - just heard on the twitter-vine about
Elizabeth Arden (RDEN) cutting guidance big time. They are not the only one today - so is
Estee Lauder (EL). Rut Roh Raggy - we're going to see the ugly side of people during this recession.... literally.
The Estee Lauder Companies, Inc. engages in the manufacture, marketing, and sale of skin care, makeup, fragrance, and hair care products worldwide.
Elizabeth Arden, Inc. operates as a prestige beauty products company worldwide. It sells fragrance, skin care, and color cosmetic products in the United States primarily to department stores and mass retailers, as well as internationally in prestige department stores, perfumeries, boutiques, and travel retail locations.
This plays into our thesis that earnings guidance that analysts are using REMAIN a figment of their imagination. And in no way shape or form is this market "cheap" or within 6 degrees of Kevin Bacon of cheap. As we entered this earnings season we said we're going to see a continued stream of "oops we're way too high on estimates" and "we have no visibility - holy smoke; the consumer has deserted us - we're pulling guidance; it's all a guess".
- Cosmetics makers Estee Lauder Cos Inc (EL) and Elizabeth Arden Inc (RDEN) warned of disappointing quarterly profits and slashed their full-year outlooks, citing weak sales over the holiday shopping period.
- Beauty products company Elizabeth Arden Inc. on Friday cut its full-year profit outlook for a second time and said results in its prestige department store business have been weaker than expected because of a soft economy.
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