Estee Lauder Cos. (EL) reported fourth-quarter sales declines in its upscale make-up and fragrance businesses as consumers continued to cut spending on beauty products.

Estee Lauder projected results for the current quarter above analyst estimates, although its outlook for its fiscal year was cautious and it forecast no immediate recovery in the high-end beauty market in the U.S.

"In North America we've seen a return somewhat of the consumer," said Executive Chairman William Lauder in an interview. "She is not fully confident yet and is not back the way she was a year ago... This will be a somewhat longer slower return of [the] consumer in North America." On the other hand, he said, in most of Asia, consumers are still very comfortable spending on prestige beauty products.

The company is examining a variety of options for its lower performing brands across the world, said Chief Executive Fabrizio Freda, including deciding if certain brands are the right fit for some countries. In cases where the company concludes that an underperforming brand can't be fixed, it may, among other options, decide to stop selling the brand, he said.

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 with net sales falling 5% to 9%. Analysts were looking for a profit of 16 cents a share 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 a share 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 part of the drop due to currency changes.

Analysts expected a profit of 20 cents a share and revenue of $1.72 billion.

The sales slump was most acute for fragrances, which reported a 35% drop, pushing the segment into the red. Estee Lauder shares were recently down 0.6% to $37.42.

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

(Mike Barris contributed to this report.)