Making matters worse, Estée Lauder management decided to slash its dividend payout from $0.66 to $0.35 effective next quarter. This is a huge drop that cuts the dividend almost in half. The stock currently pays a dividend yield of around 2% based on this new quarterly payout ratio.

The cosmetics giant withdrew its outlook for the current year after reporting another quarter of falling sales.

Shares of Estée Lauder Companies Inc. tumbled toward the lowest prices seen in a decade, after the luxury beauty-care products company warned of a large earnings miss and surprise sales decline for the current quarter,