THE WHAT? The Estée Lauder Companies has cut its full year sales forecast, citing industry-wide supply chain issues and the rise of the Delta COVID-19 variant, according to a report by Reuters.
THE DETAILS The beauty giant has been hampered by ongoing pandemic restrictions in some parts of the East, which has affected demand for its lipsticks and foundations at retail stores.
The company now predicts a net sales rise between 12-15 percent in fiscal 2022, which is down from its previous estimate of 13-16 percent.
THE WHY? A global supply chain issue has created congestion in ports as well as a shortage of labor, which in turn has added to company expenses for the year.
However, Chief Financial Officer Tracey Travis stated that Estée Lauder was in ‘very good shape’ for the holiday season, commenting that the company had produced products early and used air freight to prevent delays.