+++ Business figures +++: Lanxess increases its earnings

Despite a weak outlook, Lanxess saw surprisingly strong sales in the most recent fourth quarter. Sales rose by 1.3% to $1.27 billion by the end of June, surpassing analysts' expectations of a decline. The diluted loss per share was higher than anticipated, dropping by two cents. Coty is currently pursuing a strategy aimed at streamlining the business and cutting costs, including a plan to offset anticipated sales declines due to the early return of the Gucci Beauty license in the 2028 fiscal year.

The company is also considering selling brands such as CoverGirl and Rimmel. Estee Lauder, a US cosmetics company, impressed investors with an optimistic outlook, with its stock climbing nearly 8% in pre-market trading on Wednesday. For the 2027 fiscal year, the owner of brands like Clinique and M.A.C expects a diluted earnings per share between $3.10 and $3.35, exceeding market expectations.

The company's sales for the most recent fourth quarter reached $3.63 billion, surpassing forecasts of $3.54 billion. The optimism stems from robust demand for luxury items, especially among affluent and younger customers, particularly for trendy products, luxury fragrances, and skincare products. Brands like Le Labo and Balmain Beauty are driving the business, with the luxury perfume brands Le Labo and Tom Ford posting a 10% sales increase in the fourth quarter.

Le Labo's classical collection, featuring 50-milliliter perfumes priced at $250, benefited from expanded distribution channels and a targeted approach to new customer segments. Sweden's financial services provider Klarna exceeded market expectations with a second-quarter profit of $9 million, compared to a $53 million loss in the previous year and analysts' median estimate of -$17.4 million.

The company's adjusted operating result rose to $91 million from $29 million a year earlier, with sales growing 27% to $1.04 billion, surpassing forecasts of $993.8 million. Gross merchandise volume (GMV) as an indicator of business activity increased by 18% to $36.6 billion in the quarter, with GMV in the US rising by 27%. Despite this, the company lowered its GMV forecast for the entire year from previously over $155 billion to $149-151 billion, citing "a more cautious assessment, primarily due to revenue in Germany, our largest volume market."

However, the stock fell by 5% in after-hours trading, with analyst Brian Chin from financial services firm Stifel attributing this to high investor expectations going into the numbers. Competitors such as Lam Research and KLA reported strong quarterly results and growth forecasts. Applied Materials' shares have already more than doubled this year.