Estee Lauder Withdraws 2025 Forecast Amid Market Challenges

Estee Lauder has withdrawn its 2025 sales and profit forecasts due to declining demand for luxury beauty products in key markets, particularly China, causing a significant drop in its stock value. The company is undergoing leadership changes with Stephane de La Faverie set to take over as CEO on January 1. Estee Lauder halved its quarterly dividend, reflecting ongoing challenges in the Chinese and Asia travel retail markets where consumer sentiment remains weak. The company's first-quarter sales in the Asia Pacific region fell by 11%, and it anticipates further declines in the short term despite China's recent economic stimulus measures. Estee Lauder's forecast for the second quarter includes substantial reductions in profit and net sales expectations. The leadership transition and market uncertainties underscore the company's cautious outlook for the near future.