Estee Lauder Looks to Readjust China Ops Amid Lower Key Online Sales

Estee Lauder’s softer-than-expected sales in China through Tmall’s online platforms such as Taobao sparks questions about its ability to gain market share there. In the latest quarter, organic net sales dropped 7% in the Asia Pacific region due to lower online sales in China, despite the momentum it is seeing in brick-and-mortar in the country. The cosmetics giant has been dealing with some soft consumer sentiment in China, but it will continue investing in this market, CEO Fabrizio Freda says during a call with analysts. The company is working on improving how China and Travel Retail work in making decisions about promotions, pricing and channel composition, CEO Fabrizio Freda says. Shares jump 13% to $151.59.

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