The Estee Lauder Companies faces weak sales in Asia and slow growth globally, impacting earnings. Check out my updated look at EL stock post Q4 earnings.

Over the past five years, the stock has displayed a recurring pattern of negative one-day returns after earnings.

Estée Lauder reported double-digit declines in revenue last quarter. However, those results beat low expectations, as management touted the company's cost-cutting plan. The new CEO projects a return to growth in 2026,

The Asia travel retail slump was driven by ongoing subdued sentiment and lower conversion from Chinese consumers. Additionally, a move away from the previous North Asian reliance on bulk daigou business impacted replenishment orders.

The company expects tariffs to impact profitability by $100 million, but is forecasting a return to growth next year.

The Estée Lauder Cos. saw net sales slide in its fourth quarter and the company expects tariff-related headwinds to impact profitability by about $100 million, but it is betting on sales returning to growth next year. EXCLUSIVE: Lawless Beauty Partners With LoveShackFancy, Marking Its First Brand Partnership

Estée Lauder ( NYSE: EL) realized its third consecutive quarter of declining sales, reflecting double digit declines across most categories and across all geographic regions. Coupled with eroding profits and a warning that tariffs would shave $100M off the company’s bottom-line, shares were under heavy selling pressure into Wednesday’s open.

Positive action from investment banks indicate that Estée Lauder Companies ‘Beauty Reimagined’ turnaround plans are starting to pay off