Estee Lauder cuts annual sales forecast on China COVID curbs, Ukraine crisis
2022.05.03 14:31
FILE PHOTO: An Estee Lauder cosmetics counter is seen in Los Angeles, California, U.S., August 19, 2019. REUTERS/Lucy Nicholson
(Reuters) -Estee Lauder Cos Inc cut its full-year sales forecast on Tuesday, as fresh COVID-19 restrictions in China and Russia’s invasion of Ukraine dampen demand for the cosmetics maker’s luxury products.
The company’s shares were down 9% in premarket trading on low volumes.
The maker of MAC lipsticks and Bobbi Brown foundations remained under pressure from product shortages and higher costs as the Ukraine war has worsened supply chain disruptions caused by the pandemic.
The company expects net sales for the full year to rise between 7% and 9%, down from its prior forecast of an increase in the range of 13% to 16%.
Estee said net sales in Russia and Ukraine declined following the suspension of all commercial activities in Russia, including closing all stores in the country following the invasion.
The company estimates adjusted annual profit of between $7.05 and $7.15 per share for the full year, compared with its prior outlook of between $7.43 and $7.58 per share.
