Estée Lauder Shares Drop Amid Earnings Decline and Investor Skepticism

Estée Lauder's stock fell sharply following its Q4 2025 earnings release, despite narrowly surpassing muted analyst expectations. The beauty giant reported an 11.9% revenue decline to $3.41 billion, with adjusted earnings per share plummeting 86% to $0.09. Weakness in Europe, the Middle East, and Africa—driven by reduced travel retail demand from Chinese consumers—accounted for much of the downturn.

New CEO Stéphane de La Faverie emphasized cost-saving measures under the Profit Recovery and Growth Plan, but persistent sales declines in the Americas and Asia-Pacific regions fueled doubts about the company's 2026 outlook. The earnings miss caps a challenging year for the cosmetics leader, with investors scrutinizing its ability to stabilize demand in key markets.