Estee Lauder falls 16% as weak guidance, CFRA downgrade hits sentiment
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Estee Lauder Companies (NYSE:EL) fell sharply on Wednesday after the cosmetics company slashed its full-year guidance to $3.29 to $3.32 from a prior range of $4.87 to $5.02. The guidance cut was due in a large part to weakness in the Asia travel market.
On Wall Street, CFRA dropped its rating on Estee Lauder Companies (EL) to Hold from Buy on off a lowered view of where 2023 EPS will land.
Analyst Ana Garcia and team said they are skeptical of travel retail resuming at a meaningful level to offset softness in a slowing macro that could further stress otherwise growing markets.
CFRA clipped its 12-month price target on Estee Lauder to $100 from $200.
Earlier on Wednesday, Estee Lauder (EL) reported organic sales fell 8% in FQ3, primarily driven by Asia travel retail in Hainan and Korea. The cosmetics company noted organic net sales grew in nearly every market, including the developed markets of the United States, the United Kingdom and Hong Kong, and in emerging markets globally. Of note, the fragrance category grew double digits.
Shares of Estee Lauder (EL) slid 15.71% following the mixed earnings report.