(Reuters) -Cosmetics giant Estee Lauder ( EL ) forecast a bigger-than-expected drop in fiscal 2025 sales on Thursday, signaling slowdown in the American market and a longer road to recovery for demand in key China region.

For the last couple of years, Estee has been struggling to revive demand, mainly in China and Asia travel retail as Chinese consumers navigate high unemployment and property downturn. It has also seen demand softening in the American beauty market.

Its woes are further aggravated by U.S. President Donald Trump's chaotic implementation of tariffs, which are likely to push up costs for major American firms that import their products particularly from China and Europe.

Estee now expects net sales for fiscal 2025 to be down 8% to 9%, compared with analysts' estimate of a 7.07% fall, according to data compiled by LSEG.

The MAC lipstick maker's net sales fell 10% to $3.55 billion during the period. Analysts on an average estimated a fall of 10.72% to $3.52 billion.

Shares of Estee were up 3% in premarket trading.