Estee Lauder Company’s fiscal third-quarter profit more than doubled, helped by strength in its skincare business and by the launch of high-end fragrance products. The company’s profit exceeded expectations, and a 10% improvement in its sales signaled that consumers are more willing to make discretionary purchases.

The company also raised its outlook for the year again, even though this higher projection came in below analyst forecasts. Estee Lauder boosted its estimate to earnings of $2.65 to $2.75 a share from a range of $2.55 to $2.73 a share. Analysts expected earnings of $2.79 a share.

Estee Lauder’s stock was recently down 7% to $65.02.

The beauty industry has seen sales improve in recent quarters after a sharp drop during the recession. Even in the U.S., which was sharply hit, the company said that there appears to be some pickup in consumer sentiment. Chief Executive Fabrizio Freda said on a conference call that March sales gains for U.S retailers and upscale department stores suggest an initial recovery in consumer spending. Still, the company said its forecast for the year reflects expectations for only a “moderate” economic pickup in the U.S. The company’s estimate also takes into consideration a cautious outlook on some economies like Japan, even though it is seeing its business stabilize somewhat in that country.

The recent travel disruptions due to the volcanic ash cloud in Europe hurt sales “modestly,” Estee Lauder said. High-end beauty companies tend to get a portion of their sales from duty-free stores. The company’s profit projections for the year also reflect higher spending on items such as advertising and marketing.

For the quarter ended March 31, Estee Lauder posted a profit of $57.5 million, or 28 cents a share, up from $27.2 million, or 14 cents a share, a year earlier. Excluding restructuring costs, earnings rose to 34 cents a share from 16 cents a share.