Estée Lauder cuts its fiscal 2024 outlook.
Estée Lauder stock was falling sharply Wednesday after the cosmetics company cut its fiscal-year outlook as headwinds in China are expected to persist.
Estée Lauder said on Wednesday it now anticipates fiscal 2024 sales to range between a 2% decline and a 1% increase from the prior year. In the company’s fourth-quarter financial report in August, Estée Lauder said it estimated that sales would increase between 5% and 7% from the prior year. The company’s adjusted earnings per share outlook also was cut to between $2.17 and $2.42 a share from between $3.50 and $3.75 a share.
“While we had a better-than-expected first quarter, we are lowering our fiscal 2024 outlook given incremental external headwinds, namely from the slower growth in overall prestige beauty in Asia travel retail and in mainland China,” Chief Executive Fabrizio Freda said in the earnings release. Freda added that the ongoing war in the Middle East also was a risk to the business.
For the first quarter, Estée Lauder posted earnings of 11 cents a share on revenue of $3.52 billion. Analysts surveyed by FactSet were expecting the beauty company to report a loss of 21 cents a share on revenue of $3.53 billion.Shares of Estée Lauder were falling 15% to $109.30 in premarket trading Wednesday. Coming into the session, the stock has tumbled 48% this year.
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