Estée Lauder Stock Dives on Surprise Loss, Job Cuts as Sales Decline | Global News Avenue

Estélauder (he) The stock fell 17 % on Tuesday to lead the leader S & P 500 Decliners reported a surprising quarterly loss and weak guidance as a beauty product manufacturer, and announced that it was cut behind the lag work.

This cosmetics giant released its business loss of US $ 580 million in the second quarter of fiscal year in fiscal year, which is $ 1.64 per share. Analysts of Alpha surveys are looking for $ 0.26 per share. The income decreased by 6 % year -on -year to $ 4 billion, although this is better than forecast.

Sales in the field of skin care are 12 % to 1.92 billion US dollars, and cosmetics sales have fallen to 1 % to 1.15 billion US dollars, mainly due to the slowdown in demand in China and other regions of Asia -Pacific. For “the continuous softness of the company’s salon channel and the continuous softness of the timing of the goods), the sales of hair care have dropped by 8 % to $ 159 million. The only part of the release of sales revenue is perfume, which increased by 1 % to $ 744 million Essence

CEO StéPhanede La Faveerie said that Estélauder is starting a new strategic plan called “Beauty Remagined”, which aims to “significantly becomes our operation mode more beautiful, faster, and more agile. In order to expand consumer coverage, gradient, gradient, gradient innovation and increased investment for consumers, to better capture growth and promote profitability. ”

As part of this move, the company will shake executive suite and lay off 5,800 to 7,000 employees.

The company believes “continuous fluctuations” in the short term

Estélauder also warned: “The company’s Asian travel retail business challenge, consumers in China and South Korea are gentle and continuously developing global geopolitical uncertainty. The company is expected to continue to fluctuate and lower in the near future.” The current quarter adjustment Earnings per share (EPS) $ 0.20 to $ 0.30, the income dropped by 10 % to 12 %. The visible ALPHA estimation value was $ 0.62, a decrease of almost 7 %.

In the past year, Estélauder’s stock price has lost about half of the value.