EL stock dives on 3Q sales

Estee Lauder shares suffered their worst loss of the year as store closures due to the pandemic resulted in disappointing third-quarter sales.

The New York-based cosmetics giant fell short of Wall Street’s revenue expectations by 2%, with less demand for makeup as in-person gatherings remain below pre-pandemic levels. The results easily beat last year’s third quarter performance, which came just as the pandemic was kicking into gear, and sales are 9% ahead of 2019’s year-to-date.

“We exceeded our sales and earnings expectations, even as several markets experienced increasing pressure from COVID-19 throughout the quarter,” said CEO Fabrizio Freda.

Shares in Estee Lauder fell 7.9% to close at $288.93 on Monday as investors collected profits. The stock had increased 18% since the beginning of the year.