Shares in Estée Lauder (EL) took a 2% tumble in preliminary Wednesday trading as the cosmetic powerhouse disclosed a more significant quarterly loss than anticipated and an uninspiring prognosis for the forthcoming year. While the company, which houses brands such as MAC, La Mer, and Jo Malone, reported a loss per share of $1.51 in the fourth quarter, the reported loss during the same period from the previous year was $0.79. Total sales for the quarter ending June 30 dropped 12% year over year to $3.42 billion. This slump was mainly attributed to decreased sales of skincare products from La Mer and the company's own brand within the Asian travel market. Stating that the demand from Chinese consumers remains "muted," Estée Lauder is still navigating a fluctuating market.
Analysts from Visible Alpha had previously projected a fourth-quarter loss per share of $0.07 and net sales of $3.41 billion. The prediction for the company falls short as Estée Lauder expects a 0%-3% growth in net sales for fiscal 2026, falling short of Visible Alpha estimates predicting $14.78 billion, a 3% increase from the $14.33 billion in fiscal 2025.
Over past years, Estée Lauder grappled with remaining current on trends and overly focusing its attention on Chinese consumers. The company effected a shift in strategy this year which elevated its stock price. The shares of the company have seen a 19% increase this year prior to Wednesday.