A counter of Estee Lauder is seen on the floor of a department store in Brooklyn on February 5, 2025 in New York City.
Spencer Platt | Getty images
Several beauty actions recorded great losses this week, such as companies such as Elfa beauty and Estee Lauder He reported disappointing profits and cutting orientation.
ELF closed its worst week since August 2018, with the actions that are gathered almost 29% during the period of five days. The Cosmetics brand on Thursday registered a rate of income for its third fiscal quarter, but the earnings adjusted by Action were lost and reduced its full -year guide between $ 1.3 billion and $ 1.31 billion in sales, below a range previous between $ 1.32 billion and $ 1.34 billion.
CEO Tarang Amin told CNBC in an interview about the results that the cosmetics sector decreased widely by 5% in January, which attributed to a hangover of vacation discounts and a decrease in online attention to Beauty products
Morgan Stanley analysts, Da Davidson and UBS reduced the stock to a neutral or equal weight after the report, citing the court guide.
The actions of Estee Lauder fell 22% in the week, marking the worst week of those actions since November. The company said Tuesday that it would reduce between 5,800 and 7,000 jobs for the end of fiscal year 2026 and to soften the retail travel demand in Asia would damage its net sales in the third quarter.
The news sent shares despite a rate of the income of the second quarter and earnings per share.
“He simply said, we lost our agility. We did not take advantage of the fastest growing opportunities,” said the CEO Stéphane of the Faverie, who began in the position on January 1, in the gain call.
Actions of Ult beauty and I coty They were also under pressure this week, cutting 9% and almost 8%, respectively, the week. It was the worst week since April, and Coty's worst week since October.
In Elf Beauty's profit call on Thursday, Amin said the company saw “a little softness” in Uult, one of the brand's retailers, in January.
The beauty sector, like others in the United States, faces the threat that tariffs eat their profits. China announced tariffs on selected imports from USA. UU. Tuesday in response to additional 10% rates of President Donald Trump about Chinese products.
Elf, for example, manufactures about 80%of its products in China, but Amin told CNBC that the company was “relieved” to see Trump to impose tariffs of only 10%, when he had previously floated taxes until 60 %.
– Gabrielle Fonrouge and Adrian van Hauwermeiren of CNBC contributed to this report.
