"Estée Lauder forecast annual sales and profit slightly below estimates on Thursday, as the cosmetics maker navigates a brand reset with increased marketing spend while it navigates tariff-related pressures. Shares fell about 9 percent in premarket trading after it forecast third-quarter margins to contract 50 basis points due to stepped-up investments in product innovation and tariff pressures. The company, which is undergoing a turnaround under its CEO Stephane de La Faverie, flagged a $100 million tariff hit on"
"annual profit, reiterating its forecast from October 2025. It said it has been reducing inventory and promotions, among other actions, to mitigate rising costs. Estée's 'Beauty Reimagined' strategy has been accelerating launches in categories such as skincare, rolling out new luxury price tiers, and boosting innovation and marketing efforts to attract more consumers. The cosmetics maker expects annual net sales to be in the range of 3 percent to 5 percent, the midpoint of which is below analysts' estimates of 4.3 percent rise,"
Estée Lauder forecast annual net sales growth of 3–5 percent and full-year adjusted EPS of $2.05–$2.25, with midpoints below analysts' estimates. Third-quarter margins are expected to contract about 50 basis points due to stepped-up investments in product innovation and higher marketing spend as part of a brand reset. The company flagged a $100 million annual profit hit from tariffs and said it is reducing inventory and promotions to mitigate rising costs. The 'Beauty Reimagined' strategy is accelerating skincare launches, new luxury price tiers, and stronger innovation and marketing efforts. Quarterly sales were $4.23 billion, in line with estimates.
Read at The Business of Fashion
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