Estee Lauder Companies, Inc. (EL) saw its stock decline by 1.41% to close at $78.17 on December 5, 2024, amid ongoing concerns about its financial health and strategic direction. The stock opened at $79.65 and reached a low of $77.25 during the trading session, with a volume of 3,606,048 shares, which is 74.11% of its average daily volume. The decline follows a series of negative developments, including a significant dividend cut announced in late October due to challenges in the prestige beauty market, particularly in China and Asia's travel retail sectors. This move has not been well-received by investors, contributing to a negative sentiment around the stock.
Adding to the pressure, Estee Lauder is under legal scrutiny from multiple law firms investigating potential securities fraud and other unlawful business practices. These investigations, announced in early December, have further clouded the company's outlook. The combination of these factors, along with disappointing fiscal 2025 first-quarter results and a reduced dividend, has weighed heavily on investor confidence.