Estee Lauder among multinationals hit by China lockdowns

International companies that rely on sales in China have been hammered by Beijing’s Zero COVID policies that have mandated strict periods of isolation for millions of people.

Associated Press

November 02, 2022 / 18:50 IST

The Estee Lauder (Image: Reuters)

The devastating effects of COVID-19 lockdowns in China overshadowed a strong quarter at Estee Lauder and shares of the cosmetics company tumbled before the opening bell Wednesday.

International companies that rely on sales in China have been hammered by Beijing’s Zero COVID policies that have mandated strict periods of isolation for millions of people.

On Wednesday, Estee Lauder lowered its annual adjusted per-share profit expectations from between $7.39 and $7.54, to between $5.25 and $5.40. That’s far below Wall Street projections for per-share profits of $7.35 per share, according to a FactSet survey.

Shares fell 9% in early trading.

Bigger companies have not been spared from the effects of China’s strict virus policies.

COVID-19 Vaccine

Frequently Asked Questions

How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

Show