Estée Lauder stock tumbled 19% on Thursday after the beauty company warned that tariffs would impact profitability by approximately $100 million this year. The company is executing its “Beauty Reimagined” turnaround plan, costing between $1.2 billion and $1.6 billion. Despite raising its fiscal 2026 outlook after posting 4% organic sales growth in Q2, investors focused on tariff headwinds expected in the second half. Estée Lauder has offset more than half of the expected tariff impacts through trade programs, optimized manufacturing across regions, and increased supply chain flexibility. The company is considering pricing actions to offset costs further. CEO Stéphane de La Faverie called this a “pivotal year.”

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