Estée Lauder’s stock plummeted yesterday. This follows the revelation of downgraded forecasts from the group for the year 2023. A situation that impacts both the American beauty giant on its turnover and its projected profits.
The year 2023 is not exactly positive for Estée Lauder. The group anticipates a downward projection of its sales for the current fiscal year, caused in particular by a recovery of activity that is slow to appear in Asian countries.
Following lowered forecasts for its 2023 fiscal year, the US fragrance and cosmetics group saw its shares hit a six-month low of $190.30 during trading hours, closing down 17% at $202.70.
A difficult recovery
Estée Lauder is lamenting a slower-than-expected recovery of retail sales in Asia in its travel products segment. This situation remains even more marked in the Chinese market.
Those forecasts were “the last thing” Wall Street expected, says Barclays analyst Lauren Lieberman.
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