Estée Lauder shares plunged more than 20% on Thursday after the cosmetics giant withdrew its full-year profit forecast and revealed weak demand for its luxury perfumes and cosmetics products.

Shares of the 78-year-old company, founded and controlled by the Lauder family of New York, recently fell 22 percent to $68.03, their lowest level in a decade.

Estée Lauder said it expects second-quarter earnings per share of between 20 and 35 cents, significantly below analysts’ estimates of $1.06, according to LSEG data.

The company expects its revenue to fall between 6% and 8%, while Wall Street estimates growth of 0.2% to $4.3 billion.

On Wednesday, the company announced that it had appointed long-time employee, Stéphane de la Faverie, as general manager.

He will take the helm on January 1.

The leadership change is an attempt to give the company a major transformation as it suffers from a slowdown in consumer spending in major markets, notably China.

“We expect further sharp declines in the short term for the industry in China and Asia,” said outgoing CEO Fabrizio Freda.

The beauty and luxury goods sectors have struggled in recent quarters as Chinese consumers – hit hard by lower hiring, lower wages and a weakened real estate market – have cut back on non-essential spending.

The Chinese government promised stimulus measures earlier this month to help the economy recover, but analysts and investors have warned that it will likely take time for that money to flow from consumers to businesses.

Estée Lauder said it was “cautiously optimistic” about medium- and long-term growth opportunities from China’s stimulus measures, although it did not expect this to improve its second-quarter performance.

Estée’s first-quarter sales for the period ended September 30 fell 11% in the Asia-Pacific region, compared with a 3% decline in the previous quarter.

“There really is no end to the slowdown in demand in both China and the United States. They faced strong competition,” said eMarketer analyst Sky Canaves.

Last week, European rival L’Oréal failed to meet expectations for quarterly sales and reported weak spending on beauty products in the region, as well as disappointing results in the travel retail sector.

Earlier this month, Bernard Arnault’s luxury fashion group LVMH – which owns Louis Vuitton – reported a 5% drop in sales in its fashion and leather goods division. The results fell short of expectations for 4% growth.

The region including China was LVMH’s worst performer. LVMH’s American division is not faring much better.

Estée Lauder announced that it was revising its annual guidance to provide room for several management changes. Alongside the new CEO, Estée is also hiring a new CFO after longtime CFO Tracey Travis announced her impending retirement over the summer.

Estée announced a quarterly dividend of 35 cents per share. Its shares have already fallen 40% this year.

The luxury makeup group is not the only major company to abandon its annual forecast for management changes amid fragile results.

In the past two months, Nike and Starbucks have each lowered their annual forecasts and announced new chief executives.

With post wires