Estee Lauder forecasts dour 2023 due to China COVID lockdowns
2022.08.18 14:46
FILE PHOTO: An Estee Lauder cosmetics counter is seen in Los Angeles, California, U.S., August 19, 2019. REUTERS/Lucy Nicholson/File Photo/File Photo
(Reuters) – Estee Lauder (NYSE:EL) Cos Inc on Thursday forecast full-year sales and adjusted profit below estimates, due to a hit from COVID-19-related lockdowns in major market China.
The country, which recently eased its zero-covid policy, has seen a spike in cases, and subsequent restrictions have left companies with presence in the country stuck with piles of unsold stock as cautious consumers stay away from crowded shopping districts.
Estee also faces pressure from China’s tourism hub Hainan that extended lockdowns in the past week, effecting its brands.
The company expects full-year 2023 net sales to increase between 3% and 5%, compared with analysts’ average estimate of a 7.6% rise, according to IBES data from Refinitiv.
Estee also sees full-year 2023 adjusted profit per share to increase between 5% and 7%, below estimates of a 10.5% gain.
Shares of the New York-based company were down 3% in premarket trading.
