Aug 18 Reuters Estee Lauder projected annual net sales and profit below estimates on Friday, signaling a slowerthanexpected recovery in its travel retail business, mainly in Asia, and easing demand in the United States, sending its shares down about 5 in premarket trade.

Major companies across the globe have taken a cautious stance regarding their bets on a rebound in China, as the world39;s secondlargest economy struggles to revive demand and battles rising youth unemployment rates and a high cost of living.

Analysts have said the drop in consumer demand in China and a slow recovery in Asia travel retail sales made at airports or travel destinations like Korea and China39;s Hainan could impact luxury companies like Estee, which makes about 30 of its annual revenue from the Asia Pacific region.

Asia travel retail pressured results, particularly in Skin Care, and we continued to experience softness in North America, CEO Fabrizio Freda said in a statement.

Sales in its skincare segment fell 14.

Estee Lauder39;s Americas region reported flat net sales compared to a year ago, while AsiaPacific reported a 29 increase in sales.

European luxury rival LVMH last month also flagged cooling demand for highend products in the U.S., after the initial postpandemic euphoria.

Estee expects fullyear 2024 sales to rise between 5 and 7, compared with analysts39; estimate of an 8.8 increase, according to Refinitiv data.

The company expects annual adjusted profit per share to be…