EL
⏳ Estée Lauder expects sales growth to return next fiscal year, starting in July, despite forecasting a significant 8-9% decline for the current year.
📉 The current year’s projected sales drop is steeper than previously anticipated, highlighting ongoing challenges for the cosmetics maker.
🌱 The company sees early signs (‘green shoots’) that its restructuring plans are working, underpinning its optimistic forecast for recovery, contingent on tariff resolutions.
@bernardodegarcia:
“And we move on to a company we had a long time ago and honestly, ah, it seems to be resurrecting, but well, we thought that a while back too and it didn’t quite work out. But right now, Estée Lauder stated it expects to recover sales growth next year despite the sharp decline in the cosmetics manufacturer’s revenue. The owner of The Ordinary and Clinique brands forecasts a sales drop of between 8 and 9% this year, a larger fall than anticipated. However, the company stated that there are incipient signs, green shoots, that its restructuring plans are yielding results, boosting its forecast for growth recovery next fiscal year, which begins in July, provided, obviously, that the recently enacted tariffs are significantly resolved to mitigate potential related negative impacts, declared its CEO, Stefan la Fabieg or something like that, in a statement. We’ll see what happens. I’m very interested in Estée Lauder. Ah, it’s still trading a bit expensive in terms of forward [metrics], but in terms of price-to-sales, 1.4, a company of this style. I don’t know what ELF… Ulta Beauty is trading at, but I imagine quite a bit more, four times. Ah, and Ulta is also trading at about, well, Ulta is trading at 1.8 times, it doesn’t seem too expensive either at 1.8. Estée Lauder, remember, is trading at 1.4.”
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