By Nate Wolf

Shares of Estee Lauder fell sharply Thursday as restructuring charges and tariffs ate into the cosmetics company's bottom line in its fiscal second quarter.

Estee Lauder posted adjusted earnings of 87 cents a share for the quarter ended Dec. 31. 2025, ahead of analysts' consensus estimates of 83 cents. Revenue totaled $4.23 billion, up 6% from last year and in line with analysts' forecasts.

On a non-adjusted basis, however, the company reported a net profit of 44 cents a share, short of Wall Street's call for 78 cents. The costs of a restructuring program announced last February wiped out roughly half its profit.

Estee Lauder stock dropped 11% in premarket trading. Shares had risen 86% over the last 12 months as of Wednesday's close as the stock recovered from a brutal decline that began in 2021.

Tariffs also presented another challenge. Estee Lauder reiterated its forecast that tariff-related costs will take a $100 million slice out of fiscal 2026 profit. The company expects adjusted operating margins to contract by about 0.5 percentage points in the third quarter due to a mix of tariff headwinds and consumer-facing investments.

Write to Nate Wolf at nate.wolf@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

February 05, 2026 08:40 ET (13:40 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.