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The
New York company behind such brands as MAC, La Mer and Aveda
tempered its profit outlook as the economies of China and Korea
slow, in addition to global geopolitical uncertainty.
China announced retaliatory tariffs on some American imports and
an antitrust investigation into Google on Tuesday, just minutes
after a sweeping levy on Chinese products imposed by U.S.
President Donald Trump took effect.
Estee Lauder expects to book restructuring and other charges
related to the job cuts of between $1.2 billion and $1.6
billion, before taxes.
As of June 30, 2024, Estee Lauder had roughly 62,000 employees
worldwide, according to the company's latest annual filing.
“We are significantly transforming our operating model to be
leaner, faster, and more agile,” said CEO Stéphane de La Faverie,
who became the company's top executive last month.
The company posted sales of $4 billion in the latest quarter,
down from $4.28 billion in the same period last year.
Estee Lauder now expects profit per share between 24 cents and
34 cents in the current quarter, far below the 61 cents per
share that Wall Street had been expecting, according to FactSet.
Shares of The Estée Lauder Companies Inc. fell 16% to $69.47
Tuesday, its biggest one-day drop in nearly two years.
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