Estee Lauder Companies Inc (NYSE:EL, ETR:ELAA) shares tumbled as the beauty giant’s fiscal year 2026 outlook fell short of expectations amid tariffs and consumer weakness in its major markets.
The company said it expects adjusted earnings per share (EPS) in the range of $1.90 to $2.10, below Street forecasts of $2.21.
The company said it expects tariffs to have an impact of approximately $100 million on its fiscal 2026 profitability.
Organic sales growth is expected to be flat to up 3%.
For Q4, revenue was $3.41 billion, slightly below the consensus of $3.5 billion.
Adjusted EPS of $0.09 were down significantly from $0.64 a year earlier, but beat Street estimates of $0.08.
“Having closed fiscal 2025 as expected, we remain wholly focused on continuing to execute our strategic vision of Beauty Reimagined with excellence,” Estée Lauder CEO Stéphane de La Faverie said in a statement.
“Despite continued volatility in the external environment, we embarked on fiscal 2026 with signs of momentum and confidence in our outlook to deliver organic sales growth this year after three years of declines and to begin rebuilding operating profitability in pursuit of a solid double-digit adjusted operating margin over the next few years.”
Shares of Estée Lauder moved 6.3% lower to about $84 before Wednesday’s opening bell.