Estée Lauder Stock Drops 20% Despite Beating Expectations and Raising Outlook

Estée Lauder's Q2 results beat expectations, but the company's reiteration of a $100 million expected second-half tariff hit to profits and steady stock climb off April lows weighed on the shares, causing a 19% drop. Despite this, the company raised its earnings outlook for the full fiscal year. Investors may be concerned about the impact of tariffs on consumer confidence in Latin America.