Estee Lauder sales miss estimates as makeup demand slumps

Estee Lauder Cos Inc missed analysts' estimates for quarterly sales on Monday, as weak demand for its makeup products offset growth at the cosmetics maker's skincare brands, with people continuing to work from home.

The New York-based company's shares, which have gained about 18% so far this year, were down 3.5% in premarket trade.

Cosmetics and makeup products have taken a hit during the COVID-19 pandemic as shoppers stay at home, pressuring foundation and lipstick sales of popular brands such as M.A.C and Bobbi Brown.

Estee Lauder has been doubling down on its investments in skincare fueled by a pandemic-led shift in consumer preferences from makeup to self care.

Sales at the company's skin care segment jumped 31% to $2.26 billion, while those at its makeup segment fell 11% to $1.02 billion.

Estee Lauder forecast full-year sales to grow between 9% and 10%, excluding currency fluctuations. Analysts had expected sales to rise 11.8% to $15.99 billion, according to Refinitiv IBES data.

Total net sales rose 16% to $3.86 billion for the third quarter ended March 31. Analysts had expected sales of $3.94 billion.