Estée Lauder (NYSE:EL) fell sharply in early trading on Thursday after the cosmetics giant pulled its annual forecast and slashed its quarterly dividend payout rate to $0.35 per share from $0.66 per share.

Organic sales decreased 5% for Estée Lauder (EL) during the quarter, primarily due to worsened consumer sentiment in China that drove further softening in overall prestige beauty in mainland China and low conversion rates in Asia travel retail and Hong Kong SAR. "We anticipate still-strong declines near-term for the industry in China and Asia travel retail," outgoing CEO Fabrizio Freda warned.

During Starbucks' (SBUX) earnings conference call, CEO Brian Niccol said that all indications show that the competitive environment in China is extreme, and the macro environment is tough.

Shares of Estée Lauder (EL) fell 20% in premarket trading on Thursday. Coty (COTY) was down 2.5% and L'Oréal S.A (OTCPK:LRLCF) was off 1.5%. Starbucks (SBUX) edged 0.2% higher. Shares of Nike (NKE) often react to negative China consumer news, but are only down 0.4% in the early session.