Earnings Surprise Yet 19% Plunge: What Happened to Estée Lauder

On the 5th, shares of Estée Lauder Companies Inc. (NYSE: EL) plunged 19.12%, closing at $96.74. In a single day the company wiped out roughly $3.6 billion in market capitalization—about ₩4.9 trillion—and trading volume surged well above its average.

For its fiscal fourth quarter of 2025, Estée Lauder reported revenues of $4.23 billion and an adjusted EPS of $0.89, both ahead of analyst estimates. However, heavy restructuring charges dragged reported EPS down to $0.44. The company also warned that newly imposed U.S. tariffs would cut its fiscal 2026 earnings by approximately $100 million, a disclosure that chilled investor sentiment.

Under the recovery and growth plan launched in 2025, Estée Lauder has booked $1.2 billion to $1.6 billion in restructuring costs and cut more than 6,000 jobs. It simultaneously raised its adjusted revenue and earnings guidance, but those measures failed to offset the impact of an already richly valued stock and lofty market expectations.

Estée Lauder is a leading U.S. prestige beauty group whose portfolio includes brands such as Estée Lauder, La Mer and MAC. A significant share of its sales comes from China’s domestic market and the global travel-retail channel. After recent softness in Chinese consumer spending and duty-free sales, investors will be watching the pace of China’s demand recovery and the evolving tariff and trade environment—factors likely to determine the stock’s next move.