i_SVG Created with Sketch.

Capital Markets Elite Group is not a registered U.S. broker-dealer. It does not accept a U.S. Person as a client if that person was solicited by Capital Markets Elite Group. (The definition of “U.S. Person” is here.) Capital Markets Elite Group will rely on a certification from a potential customer that the potential customer either is not a U.S. Person or has not been solicited, directly or indirectly, by Capital Markets Elite Group and has not been induced by Capital Markets Elite Group to engage in securities transactions. In particular, they must certify that they were directed to this website by someone other than Capital Markets Elite Group. They must also certify that they understand that they will not be protected by U.S. laws, regulations and supervisory structures applicable to broker-dealers registered in the U.S. and they do not expect such protections to apply. You should give these certifications only if they are true. If you wish to proceed to the website knowing that, please click “Continue” below. Otherwise click “Leave Website”

Leave Website
Cash Back Promotion for the period 16th September 2024 - 15th December 2024. Click here for Terms and Conditions.

Level Up to $0 Commission Promotion for the period 16th September 2024 - 15th December 2024. Click here for Terms and Conditions.
Start Trading
Equities and ETFsOptions
CAP it ALLDAS Trader ProSterling Trader ProCompare Platforms
Pricing StructureEquities and ETFsOptionsMarket DataTrade Ideas Bundles
About UsTrends and InsightsContact UsFAQs
Start Trading Login
Estée Lauder Stock Plummets

Estée Lauder Stock Plummets As Outlook Disappoints Due To China

Nov 1, 2023 | About 5 Minutes

Estée Lauder (EL) stock experienced a significant decline of 17.54% on Wednesday after the company revised its fiscal-year outlook due to ongoing challenges in China. Estée Lauder now expects sales for fiscal year 2024 to range from a 2% decline to a 1% increase compared to the previous year. In their fiscal fourth-quarter report in August, the company had projected sales growth between 5% and 7%.

Furthermore, the company adjusted its earnings-per-share outlook for fiscal year 2024 to a range of $2.17 to $2.42, down from the previous range of $3.50 to $3.75. CEO Fabrizio Freda stated in the earnings release that the revised outlook is a result of external factors such as slower growth in overall prestige beauty in Asia travel retail and mainland China.

He also mentioned that the ongoing conflict in the Middle East poses a risk to the business. Estée Lauder stock plummeted by 19% to $104.07 on Wednesday, marking its largest percentage decrease on record and reaching its lowest closing price since August 2017. Year-to-date, the stock has fallen by 58%. Additionally, the company anticipates a 9% to 11% decrease in second-quarter revenue compared to the previous year.

The estimated earnings per share for the quarter, ranging from 48 cents to 58 cents, fell well below the FactSet consensus of $1.21. For the fiscal first quarter, Estée Lauder reported earnings of 11 cents per share on revenue of $3.52 billion. Analysts had expected a loss of 21 cents per share on revenue of $3.53 billion. In the same period last year, the company achieved earnings per share of $1.37 on revenue of $3.94 billion. RBC Capital Markets analyst Nik Modi expressed surprise at the weakness in China, as previous indications suggested. Modi rates the stock as Outperform with a price target of $195.

This content is provided for general information purposes only and is not to be taken as investment advice nor as a recommendation for any security, investment strategy or investment account.