EL launches the U.S. Amazon Premium Beauty store, increasing access to its skincare, makeup and fragrances for a wider audience.
The Estée Lauder Companies Inc.'s stock has fallen nearly 50% I first covered the stock in 2020 and sell-side analysts have recently downgraded the stock. Contrary to Wall Street analysts, I believe that EL stock has become too cheaply priced to ignore. The current share price does not assume any meaningful improvement in margins which is a very low probability scenario for long-term investors.
EL faces mounting pressure in its Asia-Pacific markets, shifting consumer behavior and currency headwinds, raising concerns for the fiscal 2025 outlook.
Shares of beauty products manufacturer Estée Lauder (EL) surged Thursday, lifted by continued optimism about China's efforts to shore up its slumping economy with an economic stimulus package.
A rate cut in China could benefit Estee Lauder. China is a major market for Estee Lauder, and the brand has struggled there lately.
I have always considered Estée Lauder to be a high-quality business. But in 2022 shares were trading too expensive for me to justify buying the stock. Today, however, after a 65-70% drop in valuation, I think the time has come to buy shares in this category (beauty) leader. While downside risks remain, I argue that the company's expansion into high-margin markets, focus on digital channels, and operational cost-cutting measures contribute to a favorable long-term outlook.
Estee Lauder's earnings have already started to rebound, but shares remain at multi-year lows. The company's operations are stronger than the market is giving it credit for. I believe the company's dividend is safe, and the current 3% yield is attractive given the firm's high quality and significant long-term growth prospects.
EL is battling weak consumer sentiment, market instability and currency woes. The company is making some progress with its Profit Recovery and Growth Plan.
The Estée Lauder Companies Inc. (NYSE:EL ) Barclays 17th Annual Global Consumer Staples Conference Call September 3, 2024 12:00 PM ET Company Participants Tracey Travis - Executive Vice President & Chief Financial Officer Conference Call Participants Lauren Lieberman - Barclays Lauren Lieberman So happy to have Tracey Travis with us today, Executive Vice President and Chief Financial Officer of Estée Lauder. I just want to also remind everyone to please refer to the slide being presented for Estée in terms of statement regarding forward-looking statements and non-GAAP disclosures.
The Estee Lauder Companies continues to be impacted by market volatility in mainland China and Asia travel retail as well as weak consumer sentiment.
Evaluate Estee Lauder's (EL) reliance on international revenue to better understand the company's financial stability, growth prospects and potential stock price performance.
Estée Lauder stock (NYSE: EL) has had a tough year so far, with its stock declining 37%, while the broader S&P500 index has risen 18%. The company has been struggling with falling sales and profits lately.