Estee Lauder Cos., Inc. (EL)

Shares of Estée Lauder Company (EL) dropped by 18.90% from $128.87 to $104.51 in the trading on Wednesday, November 1, 2023. The reason why EL down is due to the company's weaker-than-expected Q1 results and FY2024 outlook cut.

• Q1 performance: In the three months ending in September, Estée Lauder reported a 10% year-over-year decrease in sales to $3.5 billion, with net income plummeting over 90% to $36 million.
• Revised Earnings Per Share Forecast: The company slashed its adjusted earnings per share outlook for fiscal 2024 to $2.17 to $2.42, down from the previous range of $3.50 to $3.75. This revision reflects market challenges and the impact of the Israel-Hamas conflict, falling short of Wall Street's expectations.
• Challenges in Asia and War-Related Disruption: Estée Lauder's profit outlook was impacted by a sluggish recovery in Asia and an approximately $80 million earnings hit due to the Israel-Hamas conflict disruption. Weakness in China, a slow recovery in travel retail, and muted mainland China demand were key contributors.
• Persisting Challenges and Uncertainties: Estée Lauder foresees an earnings hit of about 22 cents per share, approximately $78.7 million, from the Israel-Hamas conflict, along with a 1% reduction in sales growth. Currency effects and concerns about weakening consumer confidence in specific markets add to the company's challenges.