Estee Lauder (EL) Nosedives 19% on Weak Outlook

We recently published 10 Big Names, Bigger Losses. Estee Lauder Companies Inc. (NYSE:EL) was one of the worst performers on Thursday.

Estee Lauder slashed its share prices by 19.19 percent on Thursday to finish at $96.66 apiece as investors soured on a weak outlook for its business in the full fiscal period of 2026.

In an earnings call during the day, Estee Lauder Companies Inc. (NYSE:EL) said that it expects a $100 million tariff to hit its full-year profitability, albeit it is “actively evaluating developments and mitigation strategies” to minimize the impact.

In particular, it expects higher tariffs to dent its operations in Switzerland, Canada, China, Mexico, Europe, and Japan by the second half of the year.

Despite the projected impact, Estee Lauder Companies Inc. (NYSE:EL) raised its fiscal 2026 full-year outlook, with organic sales targeted to increase by 1 to 3 percent, with an adjusted operating margin of 9.8 percent to 10.2 percent.

At present, Estee Lauder Companies Inc. (NYSE:EL) is underway with a corporate restructuring that will see the layoff of between 5,800 and 7,000 employees.

In the second quarter of fiscal year 2026, the company swung to a net income of $162 million from a $590 million net loss in the same period last year.

Net sales were higher by 6 percent at $4.2 billion from $4 billion year-on-year.

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Disclosure: None. This article is originally published at Insider Monkey.