- Estee Lauder’s Americas net sales reached $1.22 billion, a decrease of 1.5% compared to last year, aligning closely with estimates of $1.23 billion.
- EMEA net sales were $1.49 billion, representing a 6% decline year-over-year, which met the expected estimate.
- In the Asia Pacific region, net sales totaled $1.29 billion, down 11% from the previous year, yet exceeded the estimate of $1.27 billion.
- CEO Stéphane de La Faverie expressed concerns over the third-quarter outlook, citing weak retail sales trends, particularly in the Asia travel retail sector affected by Korean performance.
- The company expects continued softness in retail trends within Asia travel retail, which will challenge their organic net sales despite maintaining improved in-trade inventory levels from earlier in the fiscal year.
- Analyst recommendations for Estee Lauder shares include 5 buy ratings, 26 holds, and 1 sell.
Estee Lauder Companies Cl A on Smartkarma
Analyst Coverage of Estee Lauder Companies Cl A on Smartkarma
Estée Lauder Companies, a titan in the global cosmetics industry, has recently sparked takeover and activist speculation according to a report by Baptista Research. The report mentions potential acquisition interest and activist investor involvement. Betaville’s alert hinted at takeover talks while past rumors linked activist investor Nelson Peltz to the company, though hurdles remain due to family control.
Another report from Value Investors Club highlights Estee Lauder’s focus on cost-cutting, operations optimization, and investment in high-growth segments to enhance its premium valuation. Success in this strategy could boost the company’s worth given its strong assets, brand reputation, and loyal customer base, as indicated in the analysis provided on Smartkarma.
A look at Estee Lauder Companies Cl A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using Smartkarma Smart Scores have evaluated Estee Lauder Companies Cl A‘s long-term outlook based on key factors. The company scored high in Dividend and Momentum, indicating a positive outlook in these areas. With a solid track record of paying dividends and maintaining momentum, Estee Lauder continues to attract investors interested in stable returns and growth potential.
Although the company scored lower in Value, Growth, and Resilience, it should be noted that these scores reflect specific aspects of Estee Lauder’s performance and may not necessarily indicate a negative overall outlook. Understanding these scores can provide insight into different facets of the company’s operations, helping investors make informed decisions based on their investment preferences.
### The Estee Lauder Companies Inc. manufactures and markets a wide range of skin care, makeup, fragrance, and hair care products. The Company’s products are sold in countries and territories around the world. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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