The Estee Lauder Companies, Inc. (NYSE: EL)

This lawsuit is for anyone who acquired securities in The Estee Lauder Companies, Inc. (NYSE: EL) from February 3, 2022 through October 31, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by issuing overly optimistic guidance considering the Company was aware of weakening sales and problems that the Company was having controlling its inventory.

On November 2, 2022, Estee Lauder disclosed that it was lowering its full year financial outlook for fiscal 2023, revealing an 11% decline in net sales, which the Company attributed to Covid-19, supply chain disruptions, and inflation. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on February 2, 2023, Estee Lauder released its second quarter 2023 financial results and once again, lowered its outlook for fiscal year 2023. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on May 3, 2023, Estee Lauder disclosed that it had been experiencing weaker sales and profit for the year than estimated, lowering its guidance for the third time. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on August 18, 2023, when the Company released financial results for its fourth fiscal quarter of 2023 and fiscal year ended June 30, 2023 disclosing a substantial decrease in sales stemming largely from the travel retail markets in China and Korea. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finally, on November 1, 2023 the Company announced its financial results for its first fiscal quarter of 2024 ended September 30, 202, disclosing a decline in sales driven by a persistently slow recovery in its Asia travel retail businesses and overall slow recovery in its China markets, revealing to investors that promised rapid growth in those markets was still far off. The Company also admitted that its high inventory levels had prevented it from effectively responding to market developments. The Company further announced that the slow pace of recovery had forced it to accelerate and expand a restructuring plan, which it called a “Profit Recovery Plan,” to improve margin and lower operating expenses. The Company also cut its net sales estimate for fiscal year 2024. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in The Estee Lauder Companies, Inc. (NYSE: EL) from February 3, 2022 through October 31, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.