Why Estée Lauder Stock Crashed on Tuesday
Estée Lauder (NYSE: EL) stock suffered a makeup malfunction on Tuesday. Shares of the cosmetics giant tumbled 18.3% through 11 a.m. ET, despite beating forecasts for both sales and earnings in its fiscal Q2 2025 report this morning.
Heading into the report, analysts thought Estée Lauder would earn $0.32 per share, adjusted for one-time items, on just under $4 billion in quarterly sales. Instead, Estée Lauder reported $0.62 in profit on sales of $4 billion.
Estée Lauder's earnings report was still objectively lousy. Sales for the quarter shrank 6% year over year. Gross profit margins expanded, but the company still reported an operating loss. While adjusted earnings were positive, when calculated according to generally accepted accounting principles (GAAP), earnings were deeply negative, and Estée Lauder lost $1.64 per share on the bottom line.
Source Fool.com
