Earnings● Neutral
Estée Lauder Q4 EPS Tumbles 69% as China Sales Slump
Estée Lauder's Q4 sales fell 6% and EPS slumped 69% as China weakness persisted. The company sees another year of decline, forecasting flat to 2% lower sales in fiscal 2027.
Continue with
Estée Lauder Companies posted a sharp drop in fourth-quarter earnings as weakness in China and travel retail continued to weigh on sales. Adjusted diluted EPS fell 69% to $0.18, from $0.58 a year earlier. Organic net sales declined 6%.
The results were in line with the company's preannouncement last month, CFO Akhil Shrivastava said on the earnings call. For the full fiscal year 2026, organic net sales fell 2% and adjusted EPS came in at $3.26, down from $3.73.
The decline was led by Asia Pacific. Skin Care dropped 12%. Makeup was flat. Fragrance grew 3%. Hair Care rose 7%.
For fiscal 2027, Estée Lauder expects organic net sales to decline 2% to flat, with adjusted EPS of $3.13 to $3.31. That signals little improvement. First-quarter guidance was weaker: organic net sales down 5% to 3%, and adjusted EPS of $0.00 to $0.12.