Estee Lauder pulled again its 2025 gross sales and revenue forecasts on Thursday on weak demand for its luxurious make-up and fragrances in China, sending its shares down 20% earlier than the bell.

The corporate, which named insider Stephane de La Faverie as CEO on Wednesday to revamp its enterprise, additionally almost halved its quarterly dividend payout.

“We anticipate still-strong declines near-term for the trade in China and Asia journey retail,” outgoing CEO Fabrizio Freda stated. The brand new CEO will take cost on Jan. 1.

Demand within the magnificence sector in China has slowed within the final one yr as prospects shun purchases of even “reasonably priced luxuries” akin to lipsticks and skincare.

The China authorities had earlier this month pledged stimulus to revive its economic system, however analysts and traders have stated it might take time to seep into companies by way of client spending.

Estee stated it was “cautiously optimistic” concerning the medium- to long-term development alternatives from the stimulus, nevertheless it doesn’t count on a lift within the second quarter efficiency.

First-quarter gross sales in Estee’s Asia Pacific area fell 11%, in comparison with a 3% decline within the fourth quarter of fiscal 2024.

Final week, European peer L’Oreal, which missed quarterly gross sales expectations, had flagged poor spending for magnificence merchandise within the area.

Estee now expects second-quarter revenue per share between 20 cents and 35 cents, in contrast with estimates of $1.06, in keeping with LSEG information. It expects web gross sales to drop between 6% and eight%, in contrast with an estimate of 0.24% rise to $4.29 billion.