1044 ET - Estee Lauder tumbles 21% as it continues to expect tariff-related headwinds to hurt its profit by about $100 million, mostly in the second half. "While smaller indie beauty brands may benefit in the short term from greater sourcing agility and quicker tariff responses, larger companies like Estee can absorb the costs, making the impact less significant," says Third Bridge analyst Natasha Nair in a note. The analyst believes Estee Lauder's push to expand into higher-volume retail channels like Amazon and TikTok Shop and limit exposure to department stores is bearing fruit. "Early signs suggest the turnaround is gaining traction, with improving margins and stabilizing sales," Nair says. "The key challenge now is execution." The company is facing a tougher beauty market, as consumers grow more value conscious and its core customer base continues to age. (connor.hart@wsj.com)

(END) Dow Jones Newswires

February 05, 2026 10:44 ET (15:44 GMT)

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