Why Estée Lauder Dropped Today
Shares of beauty giant Estée Lauder (NYSE: EL) fell as much as 6.1% on Wednesday before recovering to a 4.3% decline as of 2:25 PM ET following this morning's Q4 2025 earnings release.
The beauty giant reported results that actually beat analysts' very low expectations but still showed stark declines from the prior year. While Estée Lauder's new CEO touted savings from the company's "Profit Recovery and Growth Plan," or PRGP, it appears continued revenue declines have led to investor skepticism over management's 2026 guidance.
In the fourth quarter, Estée Lauder showed a revenue decline of 11.9% to $3.41 billion, with adjusted (non-GAAP) earnings per share plunging 86% to just $0.09. While those numbers seem dire, they were actually better than feared relative to analyst expectations.
Source Fool.com
