The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Estée Lauder Cos. plans to cut 1,500 to 2,000 jobs worldwide and boost its digital operations after coronavirus lockdowns hit demand for cosmetics.
With consumers shifting to more online purchases, the company said in an earnings release Thursday that it plans to close 10 percent to 15 percent of its free-standing stores. Estée Lauder said it expects to take restructuring and other charges of between $400 million and $500 million.
The company’s forecast for adjusted first-quarter earnings of 80 cents to 85 cents a share fell well short of analysts’ estimate of $1.22 a share. Estée Lauder said net sales in the current period will fall by 12 percent to 13 percent.
In the fourth quarter that ended June 30, sales bounced back in the Asia-Pacific region as China recovered from the pandemic but slumped in other regions.
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The shares were 4.4 percent lower in premarket trading.
By Kim Bhasin.
This month, BoF Careers provides essential sector insights to help beauty professionals decode the industry’s creative landscape.
The skincare-to-smoothie pipeline arrives.
Puig and Space NK are cashing in on their ability to tap the growth of hot new products, while L’Occitane, Olaplex and The Estée Lauder Companies are discovering how quickly the shine can come off even the biggest brands.
Demand for the drugs has proven insatiable. Shortages have left patients already on the medications searching for their next dose and stymied new starters.