(Reuters) -Estee Lauder ( EL ) pulled back its 2025 sales and profit forecasts on Thursday, as the MAC lipstick maker struggles with weak demand for luxury beauty products in big markets such as China.

Shares of the company that on Wednesday named insider Stephane de La Faverie as CEO to revamp its business tumbled 15% in premarket trading after it also decided to reduce dividend payout.

"We anticipate still-strong declines near-term for the industry in China and Asia travel retail," outgoing CEO Fabrizio Freda said. The new CEO will take charge on Jan. 1.

Sales in Estee's Asia Pacific region fell 11%. The beauty sector has seen a slowdown in demand in China over the last year as customers shun purchases of "affordable luxuries" such as lipsticks and skincare.

Estee declared a quarterly dividend of 35 cents per share, payable in cash on Dec. 16 to stockholders as of Nov. 29.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Arun Koyyur)