Key Stats for Estée Lauder Stock
- Price change for Estée Lauder stock: -19%
- $EL Share Price as of Feb. 5: $97
- 52-Week High: $122
- $EL Stock Price Target: $110
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What Happened?
Estée Lauder (EL) stock tumbled roughly 20% on Thursday after the beauty company warned that tariffs would hit profitability by about $100 million this year.
The retailer is already in the midst of a major turnaround plan, “Beauty Reimagined,” which’s costing between $1.2 billion and $1.6 billion.
Despite raising its fiscal 2026 outlook after a solid first half, investors weren’t impressed. The tariff headwinds are expected to hit mostly in the second half of the year, creating uncertainty about whether the company can maintain its recovery momentum.
Estée Lauder said it’s actively working on mitigation strategies.
- The company has leveraged trade programs, optimized its manufacturing footprint across different regions, and increased supply chain flexibility.
- These efforts have already offset more than half of the expected tariff impacts.
- The company also said it’s considering “potential pricing actions” to offset costs further.
The tariff calculation includes assumed rates from Switzerland, Canada, China, Mexico, the European Union, and Japan, where Estée Lauder operates facilities. The company continues to monitor the evolving tariff situation closely.
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What the Market Is Telling Us About EL Stock
The sharp drop in Estée Lauder stock suggests investors are worried that tariffs could derail the company’s turnaround efforts.
While the company posted strong second-quarter results with 4% organic sales growth and raised its full-year guidance, the market is clearly focused on the challenges ahead.
CEO Stéphane de La Faverie struck an optimistic tone, calling this a “pivotal year” and highlighting that Beauty Reimagined has “invigorated” the business.
EL is executing what he called “the biggest operational, leadership, and cultural transformation in our history.”
Still, the turnaround remains a work in progress. Estée Lauder expects workforce reductions of 5,800 to 7,000 employees as part of its restructuring. The company is trying to balance cost cuts with increased consumer-facing investments to drive growth.
For investors, the big question is whether Estée Lauder can navigate tariff pressures while staying on track with its turnaround plan.
The company’s ability to offset tariff costs and maintain pricing power will be critical in the second half of the year.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
