Estée Lauder Q1 Earnings: China Uncertainty Hits Beauty Giant, Withdraws FY25 Outlook, Stock Tanks
Portfolio Pulse from Nabaparna Bhattacharya
Estée Lauder's Q1 earnings report reveals a challenging landscape with a net loss due to litigation charges and declining sales, particularly in China. The company has withdrawn its FY25 outlook, leading to a significant drop in stock price. Estée Lauder is also reducing its dividend to allow for financial flexibility under new leadership.
October 31, 2024 | 1:23 pm
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Estée Lauder reported a Q1 net loss due to litigation charges and declining sales, particularly in China. The company withdrew its FY25 outlook, leading to a 22.9% drop in stock price. Dividend reduction announced for financial flexibility.
The significant drop in Estée Lauder's stock price is due to a combination of factors: a net loss from litigation charges, declining sales in key markets like China, and the withdrawal of the FY25 outlook. The dividend reduction further signals financial caution, impacting investor sentiment negatively.
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