Why Estée Lauder Stock Collapsed This Week
Shares of Estée Lauder (NYSE: EL) were falling again this week, according to data from S&P Global Market Intelligence. The beauty company focused on makeup and skincare is down 23% after reporting weak earnings for the first quarter of fiscal year 2025. It is seeing demand pressure for many of its products, especially in China, and decided to slash its quarterly dividend payment.
Here's why Estée Lauder stock is down big this week.
The Asia Pacific region is huge for beauty companies such as Estée Lauder. However, in the last few years, the Chinese economy has gone through a major recession in consumer spending, likely due to the collapse of its real estate market. Last quarter, Estée Lauder's Asia Pacific revenue declined 11% year over year to $944 million.
Source Fool.com
