(Reuters) -Estee Lauder forecast annual profit below Wall Street estimates on Wednesday, as the cosmetics giant grapples with persistent weakness in the U.S. and China markets and tariff uncertainty, sending its shares down about 9% in premarket trading.
The company also said it expects a hit of about $100 million to its 2026 profit from tariff-related headwinds.
The Trump administration’s unpredictable trade policies have strained consumers’ wallets as well as put an operational strain on businesses, forcing companies to find ways to counter tariff impact while devising strategies to reignite growth.
Estee’s organic net sales for the fourth quarter fell 13%, compared with an 8% rise a year ago, primarily hurt by weakness in the skincare and makeup segments.
To revive sales, Estee Lauder has been accelerating new launches in categories including skincare, introducing new luxury price tiers, increasing investments and implementing cost-savings measures, under new CEO Stephane de La Faverie, who took up the top job earlier this year.
The MAC lipstick maker has previously said it expects to take restructuring charges between $1.2 billion and $1.6 billion, before taxes in 2026.
The company expects full-year adjusted earnings per share to be in the range of $1.90 to $2.10, compared with analysts’ estimates of $2.21, according to data compiled by LSEG.
(Reporting by Anuja Bharat Mistry and Anshi Sancheti in Bengaluru; Editing by Shinjini Ganguli)
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