An Estee Lauder counter can be seen on the floor of a department store in Brooklyn on February 5, 2025 in New York City.
Spencer Platt | Getty images
Various beauty shares have posted large losses this week, such as companies such as ELF Beauty And Estee Lauder reported disappointing income and reduced guidance.
Eleven closed its worst week since August 2018, with shares almost 29% over the five -day period. The Cosmetics brand recorded an income beat on Thursday for its fiscal third quarter, but missed his guidelines for the entire year to between $ 1.3 billion and $ 1.31 billion in turnover, a reduced by an earlier reach, with adapted profit and reduced his fiscal third quarter. of between $ 1.32 billion and $ 1.34 and $ 1.34 billion.
CEO Tarang Amin told CNBC in an interview on the results that the cosmetics sector in January broadly fell by 5%, which he attributed to a hangover with disconnection of vacations and a decrease in online attention for beauty products.
Analysts from Morgan Stanley, Da Davidson and UBS have all reduced the stock to neutral or equal weight after the report, referring to the cut guidelines.
Estee Lauder shares fell by 22% a week, which marked that the worst week of the share since November. The company said on Tuesday that by the end of the tax 2026 it would lower between 5,800 and 7,000 jobs and that alleviating the demand for travel stores in Asia would damage its net turnover in the third quarter.
The news sent shares that tumbled despite a beat on income from the second quarter and profit per share.
“Simply put, we have lost our agility. We did not use the chances with higher growth,” said CEO Stéphane de la Faverie, who started in the position on January 1, about the win call.
Shares of Ulta Beauty And Bed Also this week were under pressure, in which they were cut 9% and almost 8% respectively a week. It was the worst week in Ulta since April and Coty's worst week since October.
On the win of Elf Beauty on Thursday, Amin said that the company saw “a little softness” at Ulta, one of the retailers of the brand, in January.
The beauty sector, like others in the US, is confronted with the threat of rates that eat its winnings. China announced rates for selected American input on Tuesday in response to the extra rates of President Donald Trump for Chinese goods.
For example, eleven produces around 80%of its products in China, but Amin said CNBC that the company was “relieved” to see Trump impose rates of only 10%when he had previously driven taxes as high as 60%.
– CNBC's Gabrielle Fonrouge and Adrian van Hauwermeiren have contributed to this report.
