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KEY TAKEAWAYS
- Estée Lauder shares are down in premarket trading Wednesday after the cosmetics company posted a wider-than-forecast quarterly loss and a disappointing outlook for the upcoming year.
- The New York-based company, whose brands include MAC, La Mer, and Jo Malone, said Chinese consumer demand remained “subdued.”
- The company’s shares are falling 6% in premarket trading but have gained 19% so far this year entering Wednesday.
Estée Lauder (EL) shares are down 6% in premarket trading Wednesday after the cosmetics company posted a wider-than-forecast quarterly loss and a disappointing outlook for the upcoming year.
The New York-based company, whose brands include MAC, La Mer, and Jo Malone, posted a fourth-quarter loss per share of $1.51, wider than the $0.79 loss per share it reported the same period last year. Its net sales for the three months to June 30 was $3.42 billion, down 12% year-over-year, dragged lower by declines in the sale of skin care products from its own brand and La Mer in the Asian travel market. The company said that Chinese consumer demand remained “subdued.”
Analysts polled by Visible Alpha had projected a $0.07 fourth-quarter loss per share and $3.41 billion in net sales, respectively.
The company’s guidance also fell on the short end of estimates: Estée Lauder projected a 0%-3% growth in fiscal 2026 net sales, versus estimates from Visible Alpha of $14.78 billion, translating to a 3% increase from the $14.33 billion the company posted in fiscal 2025.
Estée Lauder had struggled for years as it fell behind trends and was overly focused on Chinese consumers. The company sharpened its focus this year, boosting its stock price. The company’s shares have gained 19% so far this year entering Wednesday.
