(Reuters) – Estee Lauder (NYSE:) Cos Inc cut its full-year sales and profit forecasts on Wednesday, signaling a hit to sales from persistent COVID-19-related lockdowns and store closures in major market China.
The New York-based company’s shares were down about 5% in premarket trade.
Sales growth of many U.S. companies like Estee has been impacted in China that has been reeling under the zero-COVID policy to fight rising infections.
The subsequent restrictions have resulted in reduced traffic in stores and temporarily curtailed distribution capacity in the region.
Estee generated about 31% of its sales from Asia-Pacific region in the fiscal 2022, according to a regulatory filing.
The company expects full-year 2023 net sales to decrease between 6% and 8%, compared with the prior forecast of a 3% to 5% growth.
The company expects full-year 2023 adjusted profit per share to decrease between 19% and 21%, compared with the previous forecast of a 5% to 7% growth.