Estee Lauder posts wider-than-expected quarterly loss

Cosmetics firm Estee Lauder posted a wider-than-expected quarterly loss on Thursday as Covid-19 travel restrictions and store closures softened demand for its products.

Estee Lauder reported a quarterly loss of $462.0m, or $1.28 per share, for the three months ended 30 June, a marked turnaround from the $157.0m recorded a year earlier.

Net sales crashed to $2.43bn from $3.59bn, falling just short of estimates for revenues of $2.45bn.

Estee Lauder, which receives a significant portion of its revenue from duty-free stores at airports, cruises and downtown locations, saw revenues slide as a result of restrictions on overseas travel and a resurgence in Covid-19 cases across several tourist attractions.

The DKNY and Tom Ford parent company also revealed that it would be cutting between 1,500 and 2,000 jobs globally, including point of sale employees, and estimated that it would be forced to shutter 10%-15% of its brick and mortar storefronts.

As of 1340 BST, Estee Lauder shares were down 5.88% in pre-market trading at $200.00 each.