Estée Lauder Shares Dip Despite Earnings Beat

Published 1 days agoEL

Estée Lauder Shares Dip Despite Earnings Beat

As of June 1, 2025, shares of Estée Lauder Companies Inc. are trading at $66.94, representing a 2.53% decrease from the previous close. The stock's intraday performance showed some volatility, opening at $68.20, with a high of $69.55 and a low of $66.87, on a trading volume of 4,619,449 shares.

In the first quarter of fiscal year 2025, Estée Lauder reported revenues of $3.55 billion, representing a 9.9% decline year-over-year, although it exceeded the analyst expectations of $3.51 billion. The company's adjusted earnings per share were reported at $0.65, significantly beating the consensus estimate of $0.31. Despite these positive earnings, Estée Lauder faced challenges in key markets, particularly in China and travel retail, leading to a 4% decline in net sales mentioned by stockstrends.ai.

In response to ongoing financial pressures, Estée Lauder has reduced its quarterly dividend from $0.66 to $0.35 per share, marking its first dividend cut since the pandemic. The company is now shifting focus towards its "Beauty Reimagined" strategy to rebuild profitability and drive sales growth in upcoming fiscal years. Analysts have expressed cautious optimism about Estée Lauder's outlook, highlighting a potential 12.42% upside with an average target price of $76.30 according to directors talk interviews.

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