Shares of Estee Lauder Cos. EL sank 9.8% to a five-month low, after the beauty products company missed fiscal third-quarter profit expectations while beating on sales, but lowered its full-year sales outlook amid the slower-than-anticipated return to growth in Asia. Net income for the quarter to March 31 fell to $156 million, or 43 cents a share, from $558 million, or $1.53 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 47 cents was below the FactSet consensus of 51 cents. Sales fell 11.6% to $3.75 billion, but topped the FactSet consensus of $3.71 billion. Skin care sales dropped 19.7% to $1.92 billion, makeup sales slipped 2.3% to $1.09 billion, fragrance sales rose 1.0% to $585 million and hair care sales grew 1.4% to $149 million. For 2023, the company cut its sales growth guidance, to negative 12% to 10% from negative 7% to 5%, due to weakness in Asia, as well as the termination of license agreements for the Donna Karan New York, DKNY, Michael Kors, Tommy Hilfiger and Ermenegildo Zegna product lines effective June 30. The stock, which is on track to open at the lowest price seen during regular-session hours since Nov. 30, has slipped 1.2% year to date through Tuesday while the S&P 500 SPX has gained 7.3%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.