LONDON (ShareCast) - (Sharecast News) - Estée Lauder's share price fell sharply on Wednesday after the American cosmetics giant reported that losses nearly doubled in its fourth quarter and estimated that trade tariffs would hit the bottom line by $100m in the current financial year.
The company, which owns brands like Jo Malone London, Clinique and Tom Ford Beauty, reported a net loss of $546m for the three months to 30 June, compared with $286m a year earlier.

While total operating expenses fell 5% year-on-year to $2.85bn, net sales were down 12% at $3.41bn, pushing the company further into the red.

Looking ahead, Estée Lauder said that "tariff-related headwinds" would impact profitability over the year to end-June 2026 by around $100m, based on current rates and inclusive of "planned mitigation actions".

These actions include leveraging available trade programmes and supply chain improvements, such as simplifying its regional manufacturing footprint to bring production closer to the consumer, including through its facility in Japan.

Chief executive and president Stéphane de La Faverie said the 2025 fiscal year finished "as expected", with full-year net sales down 9% at $14.33bn and adjusted gross profits falling 5% to $10.60bn.

Sales declined across all divisions, with the larger skincare business seeing a 12% decline to $6.96bn and makeup sales down 6% at $4.21bn, while fragrance sales were flat at $2.49bn.

"Despite continued volatility in the external environment, we embarked on fiscal 2026 with signs of momentum and confidence in our outlook to deliver organic sales growth this year after three years of declines and to begin rebuilding operating profitability in pursuit of a solid double-digit adjusted operating margin over the next few years."

The stock was down nearly 5% at $85.68 by 1117 in New York.

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