10 Firms Fall Amid Disappointing Earnings Performance

1. Estee Lauder Companies Inc. (NYSE:EL)

Estee Lauder saw its shares plummet by 16.07 percent on Tuesday to end at $69.47 apiece as investor sentiment was dragged down by news that it would cut 7,000 jobs following a sales slump.

In the second quarter of fiscal year 2025, Estee Lauder’s net sales declined by 6 percent to $4 billion from $4.3 billion year-on-year.

Gross profit dipped by 2 percent to $3.05 billion from $3.12 billion, while operating loss was at $580 million as compared with a $574 million operating income year-on-year.

Given the ongoing challenges in its Asia business, coupled with global geopolitical uncertainty, the company anticipates continued volatility and low visibility in the near term.

“While we are not satisfied with our third quarter outlook, it primarily reflects weak retail sales trends in our Asia travel retail business, which deteriorated in our second quarter driven by Korea. While our retail sales trends in Hainan were still negative in the second quarter, they improved sequentially, fueled by our retail activations,” said Estee Lauder President and CEO Stephane de La Faverie. “For the third quarter, we expect overall soft retail trends to persist in Asia travel retail, significantly pressuring our organic net sales despite the improvement we made with in-trade inventory levels in the first half of fiscal 2025, which we intend to maintain around current levels.”

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READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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