Estée Lauder’s shares plummeted as much as 27% yesterday, marking the largest one-day decline in the company’s history, after it withdrew its annual sales and profit forecasts and cut its dividend due to an uncertain outlook in China. The company, which has struggled to regain pre-pandemic demand in the Chinese market – similar to other luxury brands like LVMH and Salvatore Ferragamo – does not expect a significant boost from the recent government stimulus package. Outgoing CEO Fabrizio Freda noted further weakening consumer sentiment in mainland China, leading to anticipated strong declines in the industry. Estée Lauder's first-quarter sales in the Asia Pacific fell 11%, and sales in the Americas also dropped by 2%.