Companies

Estée Lauder Is Paying the Price for Relying Too Much on China, Analysts Say

‘Estée Lauder’s problems are a textbook case of market concentration risk,’ said founder of Tower Hills Capital.
Estée Lauder Is Paying the Price for Relying Too Much on China, Analysts Say
An Estée Lauder cosmetics counter in Los Angeles on Aug. 19, 2019. Lucy Nicholson/Reuters
Panos Mourdoukoutas
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News Analysis

Halloween saved a nasty surprise for Estée Lauder Company shareholders. The global cosmetics giant lost more than 24 percent of its market value at the opening, in a sign that analysts say reflects an overreliance on the Chinese market, which accounts for nearly one-third of its total sales.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”