New York-based cosmetics giant Estee Lauder disclosed that it has fallen victim to a cyberattack, where a hacker managed to gain unauthorized access to some of its systems. The cyber security incident has caused disruptions to certain parts of the company’s business operations, and Estee Lauder is actively investigating the extent of the breach.
The renowned cosmetics maker, best known for its brand MAC Cosmetics, is working to determine the nature and scope of the stolen data. While the company did not provide specific details on the impact of the cyber incident, it has taken swift action to mitigate the situation.
To address the breach, Estee Lauder has enlisted the help of undisclosed cybersecurity experts and is closely collaborating with law enforcement agencies. The company aims to restore the affected systems promptly while bolstering security measures across its IT network.
Michael Smith, Chief Information Officer (CIO) at Estee Lauder, and his team are leading the efforts to combat the cyber threat and safeguard the company’s digital infrastructure. Estee Lauder does not reveal the name of its cyber security partner, which is responsible for securing its IT network from cyber security attacks.
This unfortunate event adds to the challenges that Estee Lauder is currently facing. Earlier this year, the company projected weaker sales and profits for the fiscal year due to a sluggish recovery in duty-free and travel-related sales, particularly in Asia.
According to its third-quarter financial report for the period ending on March 31, 2023, Estee Lauder’s sales declined by 12 percent, totaling $3.75 billion compared to $4.25 billion during the same period the previous year. The company’s net earnings also saw a substantial drop, reporting $156 million, a significant decrease from the $558 million recorded in the prior-year period.
Estee Lauder continues to address the cyber incident diligently, aiming to restore normal business operations and reassure its customers and partners about the security of their data.