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Asharq Al-Awsat
Asharq Al-Awsat
Lifestyle
Asharq Al-Awsat

Estee Lauder Cuts Annual Forecasts as China Curbs Drag Demand

An Estee Lauder cosmetics counter is seen in Los Angeles, California, US, August 19, 2019. (Reuters)

Estee Lauder Cos Inc cut its full-year sales and profit forecasts on Wednesday, signaling a hit to sales from persistent COVID-19-related lockdowns and store closures in major market China.

The New York-based company's shares were down about 5% in premarket trade.

Sales growth of many US companies like Estee has been impacted in China that has been reeling under the zero-COVID policy to fight rising infections.

The subsequent restrictions have resulted in reduced traffic in stores and temporarily curtailed distribution capacity in the region.

Estee generated about 31% of its sales from Asia-Pacific region in the fiscal 2022, according to a regulatory filing.

The company expects full-year 2023 net sales to decrease between 6% and 8%, compared with the prior forecast of a 3% to 5% growth.

The company expects full-year 2023 adjusted profit per share to decrease between 19% and 21%, compared with the previous forecast of a 5% to 7% growth.

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