Estée Lauder Cos Inc cut its full-year profit forecast on Tuesday as fresh Covid-19 restrictions in China and its move to exit Russia due to the invasion of Ukraine dent sales at the luxury cosmetics maker, sending its shares down 10 percent.

The maker of MAC lipsticks and Bobbi Brown foundations also missed third-quarter sales estimates.

Fresh restrictions in China, a major growth market for luxury goods makers, put the brakes on a recovery in sales of cosmetics from a pandemic-induced slump.

Estée Lauder said the restrictions in China also limited its capacity to ship orders from its distribution facilities, further pressuring sales.

The company now estimates adjusted annual profit of between $7.05 and $7.15 per share for the full year, compared with its prior outlook of between $7.43 and $7.58.

Full-year net sales now projected to rise between 7 percent and 9 percent, down from its prior forecast of an increase in the range of 13 percent to 16 percent.

The La Mer beauty products maker’s sales rose 10 percent to $4.25 billion in the third quarter ended March 31, missing analysts’ average expectation of $4.31 billion, according to IBES data from Refinitiv.

By Ananya Mariam Rajesh; Editors: Shinjini Ganguli and Sriraj Kalluvila

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