Shares in Estée Lauder Companies Inc tanked 17% after the company cut its annual financial outlook, citing weaker demand in China and other Asian markets.
The beauty giant now expects an adjusted profit per share between $2.17 and $2.42, a significant drop from its earlier projection of $3.50 to $3.75.
The Asia-Pacific region, which accounts for over 30% of the company's revenue, has been particularly challenging.
Despite an 8% sales increase in the Americas, the company anticipates its annual sales to either decrease by 2% or increase by a mere 1%, compared to its previous estimate of a 5% to 7% rise.
The downward revision comes amid broader economic challenges affecting the luxury sector globally.
Early in the session, the stock was off $21.91 at $107.