Estee Lauder Sales Decline Amid Weak China Demand

Estee Lauder has forecasted annual profit and sales below estimates due to weak demand, particularly in China, and announced the retirement of CEO Fabrizio Freda. Despite surpassing earnings expectations with a quarterly EPS of $0.64, the company's shares have lost about 35.1% this year. The company reported a 2% year-over-year sales decline to $15.91 billion for the fiscal year, citing 'persistent' weak sentiment among Chinese consumers. Analysts have downgraded the stock, with concerns over softening U.S. demand and China’s decelerating market impacting future profits. Estee Lauder's profit recovery plan aims to recover $1.1 billion to $1.4 billion by FY26, but skepticism remains regarding its timing and revenue dependency. The company is exploring internal and external candidates for Freda’s successor as it navigates these challenges.