Estee Lauder stock tumbles more than 11% after profit beat expectations, but outlook was well below

Shares of Estee Lauder Cos.
EL,
+3.13%
tumbled 11.1% toward a 2 1/2-year low, after the beauty products company fiscal first-quarter profit that topped expectations while sales matched, but provided a downbeat outlook, citing expectations of continued pressure from COVID-restrictions in China, a strong U.S. dollar, high inflation, supply chain disruptions and the risk of a global economic slowdown. Net income for the quarter to Sept. 30 fell to $489 million, or $1.35 a share, from $692 million, or $1.88 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.37 was above the FactSet consensus of $1.31. Sales declined 10.5% to $3.93 billion, in line with the FactSet consensus, as unfavorable currency translation was a 4-percentage-point drag on results. Skin care sales fell 14% to $2.10 billion, makeup sales dropped 10% to $1.05 billion, fragrance sales were roughly flat at $607 million and hair care sales increased 7% to $158 million. For the fiscal second quarter, the company expects adjusted EPS of between $1.19 and $1.29, well below the FactSet consensus of $2.80, and expects sales to decline between 19% and 17%, while the FactSet sales consensus of $5.38 billion implies a 2.9% decline. For fiscal 2023, the company expects adjusted EPS of $5.25 to $5.40, below expectations of $7.35. The stock, which is on track to open at the lowest price seen during regular-session hours since May 2020, has plunged 44.2% year to date through Tuesday while the S&P 500
SPX,
-0.41%
has lost 19.1%.