Estée Lauder, known for having brands in its portfolio such as Clinique and MAC, shares plummeted in pre-market trading on Wall Street, registering losses of up to 14%, although with the opening of the market they managed to moderate to an approximate drop of 3%.
The company anticipates organic sales growth of between 0% and 3% for the fiscal year ending in June 2026. This forecast slightly exceeds the market consensus, which is around 1.9%, and represents a hopeful recovery compared to the 8% drop in sales recorded during the previous year.
Regarding its financial results, Estée Lauder expects adjusted earnings per share between $1.63 and $1.87 for the next fiscal year. However, concerns persist among investors about the slowdown in sales in China and strong competition in the United States, especially from L'Oréal and other emerging brands.
In addition, Estée Lauder's dependence on sales in duty-free stores in China and South Korea, which at one time represented up to a third of its revenue, has been significantly weakened after the reopening of international travel. Executives have stressed the need for this decline to bottom out in order to regain momentum. The outlook is further complicated by the impacts of the trade war, as the company estimates an additional tariff cost of $100 million in 2026.
According to Vogue Business, sales of the Estée Lauder group already registered a drop of almost 10% in the 2025 fiscal year and closed with total revenues of $14.3 million. Faced with this blow, the company has already launched an ambitious recovery plan, which includes an organizational restructuring and a plan of savings measures to resume its growth in the coming years.