Estée Lauder Faces Stock Plunge Amid Leadership Change and China Market Challenges

The beauty giant cuts its dividend and withdraws its fiscal 2025 outlook as it appoints Stéphane de La Faverie as the new CEO.

Estée Lauder shares fell by 20% following the announcement of a 4% revenue decline in the fiscal first quarter, largely due to weak consumer sentiment in China and Asia.
The company has reduced its quarterly dividend from $0.66 to $0.35 to maintain financial flexibility amid market uncertainties.
The fiscal 2025 outlook was withdrawn, reflecting difficulties in predicting the recovery of the China and Asia travel markets.
Stéphane de La Faverie will assume the role of CEO on January 1, 2025, marking a significant leadership transition as William Lauder steps down as executive chairman.
The Lauder family will no longer be involved in day-to-day operations for the first time in the company's history, though they will remain significant shareholders.