(Reuters) -Estee Lauder Cos Inc on Thursday forecast a smaller fall in full-year sales than previously expected, on resilient demand for its skincare and fragrances and an expected recovery in major market China that recently eased its COVID curbs.
Even with the United States on the edge of a recession, the beauty market’s post-pandemic rebound thrives with wealthy consumers indulging in smaller luxuries like lipsticks and fragrances, as they delay big-ticket purchases in the current environment.
Analysts expect China’s move in early December to relax its toughest COVID curbs and lift some travel restrictions in the region to benefit luxury and beauty companies that had flagged a hit to sales in the country from its strict zero-COVID policy.
Estee Lauder expects 2023 net sales to fall between 5% and 7%, compared with its prior forecast of a decrease between 6% and 8%.
However, Estee sees annual adjusted profit per share to fall between 27% and 29%, compared with its prior forecast of a decrease between 19% and 21%, due to an impact from a stronger dollar.
(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Shinjini Ganguli)
