On February 5th, 2025, you will see an Estee Lauder counter on the floor of a department store in Brooklyn, New York City.
Spencer Platt | Getty Images
Several beauty stocks posted huge losses this week. The beauty of the elf and Esti Lauder We reported disappointing revenue and reduction guidance.
ELF closed its worst week since August 2018, cratering nearly 29% in five days. The cosmetics brand recorded a third-quarter revenue beat on Thursday, but missed adjusted earnings per share, cutting full-year guidance from $1.3 billion to $1.31 billion in sales. Billion.
CEO Tarang Amin told CNBC in an interview about the results of the cosmetics sector significantly reduced 5% in January, he attributed it to hangovers from holiday discounts and a decline in online high-profile beauty .
Morgan Stanley, Da Davidson and analysts at UBS all downgraded the stock to neutral or equal weights following the report and cited the cut guidance.
Estee Lauder stock fell 22% a week, marking its worst week of its stock since November. The company said Tuesday it would cut jobs from 5,800 to 7,000 by the end of fiscal year 2026, and softening travel retail demand in Asia would undermine net sales for the third quarter.
The news saw stocks fall despite winning second quarter revenues and earnings per share.
“Simply put, we lost our agility. We didn’t take advantage of growth opportunities,” Stéphanede La Faverie, who took the job on January 1, said in a revenue call. I did.
Stocks The beauty of Ulta and coty He also under pressure this week, trimming nearly 9% and 8% each week. It was Urta’s worst week since April and Coty’s worst week since October.
Elf Beauty’s revenue call saw “a little softness” in January at one of the brand’s retailers, Amin said Thursday.
The beauty sector, like everyone else in the US, faces the threat of tariffs digging into its profits. China announced tariffs on some US imports on Tuesday in response to President Donald Trump’s 10% tariffs on Chinese products.
For example, ELF manufactures around 80% of its products in China, while Amin says that when Trump previously saw a 60% tax, Trump is leviing just 10% tariffs. He said he was “reliable” to see it.
– Gabrielle Fonrouge and Adrian Van Hauwermeiren of CNBC contributed to this report.
