Estee Lauder cuts profit forecast amid coronavirus outbreak
Cosmetics giant Estee Lauder has slashed its profit forecast for the year, citing the recent Coronavirus in epidemic, one of its key markets.
The beauty brand said it expects adjusted earnings of $5.60 to $5.70 per share in 2020, down from a previous estimate of $5.85 to $5.93.
Analysts were expecting earnings to reach $5.94 per share, Reuters reported citing Refinitiv data.
Estee Lauder today also reported a 15 per cent jump in net sales in the second quarter, rising from $4.01bn to $4.62bn.
Net earnings increased from $573m to $557m, and adjusted diluted earnings per common share rose 21 per cent to $2.11.
Fabrizo Freda, Estee Lauder president and chief executive, said: “In the wake of the recent coronavirus outbreak, we are first and foremost concerned about the health and safety of our employees, consumers and everyone affected in China and around the world.
“Our hearts and support go out to the many people working hard to mitigate the health risks of the coronavirus.
“The global situation will also affect our financial results in the near term, so we are updating our fiscal year outlook.
“With our results to date and our agility in allocating resources, we will strive to deliver full-year growth at least in line with our long term goals, even in this challenging moment. We will be ready to return to our growth momentum as the global coronavirus is resolved.”
The coronavirus death toll in China has risen to 564, with one death recorded outside of the country.
The virus has spread to more than 20 countries, and the number of confirmed cases stands at 24,554, according to the World Health Organisation.