LONDON (ShareCast) - (Sharecast News) - US cosmetics group Estee Lauder cut its full-year forecasts on Wednesday as it pointed to a slower-than-expected recovery in China.
The company said sales in the three months to the end of September fell 10% to $3.5bn. Organic net sales were down 11%, mainly due to expected pressures in the Asia travel retail business, and incremental headwinds from a slower-than-expected recovery of overall prestige beauty in mainland China.

Estee Lauder said these "challenges" were partially offset by organic net sales growth in the US, many markets in Asia Pacific, as well as in nearly all markets in Europe, the Middle East & Africa, led by the UK and Germany.

The company, which is behind Mac makeup brand and Aveda shampoos, now expects adjusted earnings per share of $2.17 to $2.42 for fiscal 2024, down from previous guidance of $3.50 to $3.75. As well as slower growth in China, it pointed to "the risks of business disruption" in Israel and other parts of the Middle East.

At 1305 GMT, Estee Lauder shares were down 17% in pre-market trade. Shares in London-listed Croda International - a significant supplier to Lauder - took a hit, and were trading down 1.9% at 4,293p, making it the worst performer on the FTSE 100.

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