Full-year performance guidance below expectations, Estée Lauder (EL.US) plunges nearly 20%

K-LinePoet · 2026-02-24T20:17:48+00:00

Estée Lauder's stock price plummeted nearly 20% on Thursday, currently at $96.49. Despite sales performance meeting expectations and adjusted earnings per share exceeding forecasts, the company's increased marketing expenses and tariff cost pressures led to a downward revision of the full-year profit outlook, with net sales growth guidance below analyst expectations.

K-LinePoet

2026-02-24 20:17:48

Abstract generation in progress

Thursday, Estée Lauder (EL.US) plummeted nearly 20%, after nearly a year of a 44% gain, now trading at $96.49. On the news, Estée Lauder announced its fiscal second-quarter earnings for 2026, with sales of $4.23 billion, in line with analyst expectations; adjusted earnings per share of $0.89, exceeding analyst expectations of $0.83.

However, the company increased marketing spending for brand restructuring and continued to address cost pressures from tariffs, further compressing profit margins and impacting full-year earnings forecasts. The full-year net sales growth guidance is 3% to 5%, with a midpoint of 4%, below analysts’ expected 4.3%; adjusted earnings per share guidance is $2.05 to $2.25, with a midpoint of $2.15, also below the expected $2.16.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.