Estee Lauder Cos. (EL) swung to a fiscal fourth-quarter loss as the company absorbed restructuring charges and faced declining sales of its high-end fragrances and consumers cut spending on beauty products.

The company projected results for the current quarter above analysts' estimates amid continued efforts to cut costs. Fiscal first-quarter earnings are seen at 23 cents to 30 cents a share on net sales falling 5% to 9%. Analysts were looking for a 16-cent profit and revenue falling 10% to $1.72 billion.

For the year, Estee Lauder expects earnings excluding restructuring charges of $1.55 to $1.70 a share with revenue up as much as 3%. Analysts polled by Thomson Reuters were expecting earnings of $1.70 on 1% sales growth to $7.39 billion.

The beauty products industry has suffered as consumers continue to curb spending. New Chief Executive Fabrizio Freda, a former Procter & Gamble Co. (PG) veteran who joined the cosmetics giant last month, has taken on the challenge of reducing Estee Lauder's dependence on faltering U.S. department stores. Estee Lauder early this year said it would slash 6% of its work force.

For the quarter ended June 30, the company posted a loss of $17.9 million, or 9 cents a share, compared with a year-earlier profit of $120.2 million, or 61 cents a share. Excluding restructuring charges, the latest quarter's earnings would have been 20 cents a share.

Net sales tumbled approximately 16% to $1.68 billion, with 6 percentage points due to currency changes.

Analysts expected a 20-cent profit and revenue of $1.72 billion.

Gross margin fell to 74.6% from 75.6% amid the sales declines.

The sales slump was most acute for fragrances, which reported a 35% drop, pushing the segment into the red. The much larger skin-care and makeup businesses reported drops of 13% and 12%, respectively, with profit falling sharply.

Shares recently fell 0.05% to $37.62 premarket. The stock has soared 90% from a March low.

-By Anjali Cordeiro, Dow Jones Newswires; 212-416-2200; anjali.cordeiro@dowjones.com

(Mike Barris contributed to this report.)