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Tariffs postponed, markets stabilizeRally pauses to end positive weekMegatech spooks marketsThis summary was created by AI, based on 9 opinions in the last 12 months.
Estee Lauder has faced significant challenges recently, with reviews highlighting a disconnect between its high pricing strategy and changing consumer preferences, especially in the wake of the pandemic. Although the brand enjoys strong recognition and leadership in the sector, concerns about declining revenues, particularly in key markets like China, weigh heavily on investor sentiment. The company has shown resilience through its transition to online sales and recent earnings beats, yet experts remain cautious about its future, noting the need for rejuvenation in lagging brands like Clinique. The outlook for Estee Lauder appears mixed; improvements depend heavily on recovering demand in Asian markets and a strategic exit from underperforming segments. Overall, while pessimism prevails, there are opportunities for growth amidst the challenges.
He'd own it for the next couple of months, but questions the next couple of years. Clinique is strong, but has lost some of its brand "heat". Weaker topline. Revenue coming down at the same time as costs are inflating. Tactically bullish if you believe the spurt in China is real, but tends to get more competitive over the long term, and that will come home to roost for EL over a 5-year horizon.
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Fundamental driver of business very strong - vanity products. Long history of well established brands. China growth has slowed, but overall is optimistic on company. Not founder run, but founder still owns large chunk of business. Is ~1% position in portfolio. Will keep buying on share price weakness.
It reported a beat this morning, but they always set a really low bar in earnings, and the long-time CEO announced his retirement. The CEO guided it to great heights, but recent disastrous declines in earnings. The pandemic hurt their Chinese sales and that has never recovered; also, airport sales haven't recovered. Since the start of 2022, Estee Lauder has sank 75% while ELF has soared 382%. Lauder maintained high prices to protect their margins, but that may be working anymore.
EL is a high-quality consumer staple name, which has always traded at a premium valuation. However, EL’s revenue has declined for two years in a row now, which has investors concerned. We think EL is in a bit of turnaround situation now, which we try to stay away from (most turnarounds rarely turn or take longer than expected), we would like to see revenue growth recover before getting interested in EL. Growth out of China is not helping but competition does look like it is increasing across the board as well and we wonder a bit if EL is having trouble adjusting to newer marketing channels that are being used.
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EL’s share price is under tremendous pressure recently due to the weak guidance. Still, at 52X earnings the stock is still on the expensive side, even with a 28% YTD decline. Based on consensus estimates, sales are expected to decline by around -10% this year and start to recover back to 2022’s level in 2024. We think EL still possesses a strong portfolio of worldwide recognized brands for skincare, makeup, fragrance, etc. and these brands have been around for decades and demonstrated consumer loyalty and significant pricing power over the years. Most consumer discretionary names experienced a short-term headwind due to the concern of economic recession. In the last quarter EPS missed estimates. For 2023, EPS is expected to decline by close to 50%. But, nearly 50% growth is expected in a 2024 recovery. Thus, this is a tough call. Momentum is negative, and there are still risks. Valuation is high, but we think that is because investors believe in the rebound possibility. We have recession risk, but the balance sheet is OK (some debt but not an onerous amount). Sentinment is very negative, so any positive news at all should be good for the stock. We would thus be willing to hold to see how the next two quarters fare.
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Upgraded today, but down 25% YTD. It has missed the last three quarters and most recently guided down due to supply chain issues and China reopening slowly and travel retail (mostly from Asia) being down 43%. But ex-travel retail rose 10% last quarter, so eventually these will work. Eventually, China will right itself and sentiment has fallen enough.
Estee Lauder is a American stock, trading under the symbol EL-N on the New York Stock Exchange (EL). It is usually referred to as NYSE:EL or EL-N
In the last year, 6 stock analysts published opinions about EL-N. 1 analyst recommended to BUY the stock. 5 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Estee Lauder.
Estee Lauder was recommended as a Top Pick by on . Read the latest stock experts ratings for Estee Lauder.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
6 stock analysts on Stockchase covered Estee Lauder In the last year. It is a trending stock that is worth watching.
On 2025-04-01, Estee Lauder (EL-N) stock closed at a price of $67.87.
Estee overplayed its hand in terms of how much it costs to shop, not realizing that the consumer around the world has changed and wants more value than they used to. The stock has performed so poorly for so long.