(Reuters) – U.S. cosmetics maker Estée Lauder lowered its full-year sales forecast on Tuesday as new COVID-19 restrictions in China and Russia’s invasion of Ukraine dampened growth. demand for luxury goods.
The title of the company fell 9% in pre-market trading, in a context of low volumes.
The maker of MAC lipsticks and Bobbi Brown foundations remained under pressure from product shortages and rising costs as the war in Ukraine worsened supply chain disruptions caused by the pandemic.
The group now expects net sales to rise 7-9% for the full year, compared to an earlier forecast of 13-16%.
Its net sales in Russia and Ukraine declined following the suspension of all business activities in Russia, including the closure of all its stores in the country following the invasion.
Estee Lauder estimates that for the full year its adjusted annual profit will be between 7.05 and 7.15 dollars (6.71-6.81 euros) per share, while it previously targeted a figure between $7.43 and $7.58.
(Reporting Ananya Mariam Rajesh in Bangalore; French version Dagmarah Mackos; Editing by Kate Entringer)
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