THE WHAT? Terry Smith, a UK fund manager, has sold his stake in Estée Lauder Cos. while retaining his holding in L’Oréal SA. Smith cited Estée Lauder’s mismanagement of the reopening of China’s market and its supply chain issues as reasons for the sale.

THE DETAILS  Estée Lauder, known for brands like Clinique and Aveda, has experienced a decline in market share in the US and a reduction in annual outlook for three consecutive quarters. The company’s shares have decreased by nearly 50% in the last year.

THE WHY? In contrast, L’Oréal’s shares have gained over 20% in the same period. L’Oréal has demonstrated revenue growth and resilience through its budget brands and the acquisition of Aesop, contributing to its market dominance.