Estée Lauder(US:EL) Hua Er Jie Jian Wen·2025-08-20 11:38Core Viewpoint - Estée Lauder reported stronger-than-expected quarterly results, but a disappointing full-year guidance led to a nearly 15% drop in stock price during pre-market trading [1] Group 1: Quarterly Performance - For the fourth fiscal quarter ending June 30, net sales reached $3.41 billion, exceeding market expectations of $3.4 billion [1] - Adjusted earnings per share were $0.09, surpassing analyst predictions of $0.073 [1] Group 2: Full-Year Guidance - The company projected adjusted earnings per share for fiscal year 2026 to be between $1.90 and $2.10, below the analyst average estimate of $2.21 [4] - Organic net sales growth for fiscal year 2026 is expected to be between 0% and 3%, slightly above the market expectation of 1.94% [3] Group 3: Challenges and Strategic Changes - The company anticipates a $100 million impact on profitability due to tariff-related headwinds, primarily from comprehensive tariffs imposed by the U.S. government [4] - Estée Lauder is working to reduce reliance on duty-free shops in China and South Korea, which previously contributed up to one-third of revenue [4] - Under new CEO Stéphane de La Faverie, the company is implementing cost-cutting measures and increasing sales efforts on platforms like Amazon and TikTok, moving away from traditional department store reliance [5]