Estée Lauder Companies face cybersecurity breach; reveals ‘unauthorized party obtained some data from its systems’

Estée Lauder Companies (NYSE:EL) experienced a cyberattack recently. The company detected an “unauthorized” third party accessing some of its systems. As a result, certain systems were taken offline, and an investigation, supported by cybersecurity experts and law enforcement, was initiated. Estée Lauder has revealed that it is taking steps to secure its business operations and protect against further unauthorized access.

In an official statement, the company acknowledged that the incident has resulted in disruptions to certain areas of its business operations and is expected to continue doing so.

In an official statement, Estée Lauder Companies said, “Estée Lauder Companies Inc. (NYSE: EL) has identified a cybersecurity incident, which involves an unauthorized third party that has gained access to some of the Company’s systems. After becoming aware of the incident, the Company proactively took down some of its systems and promptly began an investigation with the assistance of leading third-party cybersecurity experts.”


“The Company is also coordinating with law enforcement. Based on the current status of the investigation, the Company believes the unauthorized party obtained some data from its systems, and the Company is working to understand the nature and scope of that data”, it added.

The latest cyberattack comes as more unfortunate news for the company, as its stock has declined by 25% year-to-date. In May, the company reported lower-than-expected earnings and significantly reduced sales and profit forecasts for the full year. EL attributed these challenges to the slow recovery of travel in Asia following the pandemic.

In the past 90 days, EPS estimates have been revised downward 24 times without any upward revisions. The company is anticipated to announce its earnings next month. On Wednesday morning, shares experienced a 0.3% decline.

FAQs:

Q1:When was Estée Lauder Companies founded?
Estée Lauder Companies was established in 1946 by Estée Lauder and Joseph Lauder. Initially, the company offered a modest lineup of four products: Cleansing Oil, Skin Lotion, Super Rich All-purpose Creme, and Creme Pack. By 1948, they secured their first department store account with Saks Fifth Avenue in Manhattan.

Q2:Who is the CEO of Estée Lauder Companies?
Fabrizio Freda has been serving as the CEO of Estée Lauder Companies since July 2009. Additionally, he holds a position on the company's Board of Directors.