Analysts have said the drop in consumer demand in China and a slow recovery in Asia travel retail - sales made at airports or travel destinations like Korea and China's Hainan - could impact luxury companies like Estee, which makes about 30% of its annual revenue from the Asia Pacific region.
"Asia travel retail pressured results, particularly in Skin Care, and we continued to experience softness in North America," CEO Fabrizio Freda said in a statement.
Estee Lauder's Americas region reported flat net sales compared to a year ago, while Asia-Pacific reported a 29% increase in sales.
The company expects annual adjusted profit per share to be between $3.50 and $3.75, compared with analysts' expectation of $4.83.
However, on an adjusted basis, Estee earned a profit of 7 cents per share, compared to an estimated loss of 4 cents per share.
Persons:
Lauder, Shannon Stapleton, Estee Lauder, Fabrizio Freda, Estee, Granth Vanaik, Ananya Mariam Rajesh, Pooja Desai
Organizations:
Nordstrom, REUTERS, Thomson
Locations:
New York, U.S, Asia, United States, China, Korea, Hainan, Asia Pacific, North America, Pacific, Bengaluru