Estee Lauder shares drop as marketing costs and tariffs weigh on annual profit outlook
The cosmetics giant expects lower annual results due to high marketing spend and tariff pressures. Shares fell nine percent following the announcement today.
Insights:
The Estée Lauder Companies Inc. announced on February 5, 2026, that its annual sales and profit forecasts have come in slightly below analyst estimates, citing a combination of increased marketing and product investments alongside tariff-related pressures. The company issued these projections during its quarterly results release, which triggered an immediate market reaction as shares of The Estée Lauder Companies Inc. declined by approximately 9% in premarket trading. The updated guidance for both full-year sales and adjusted earnings per share (EPS) fell short of the midpoints expected by analysts in estimates compiled by LSEG.
