Core Viewpoint - The Estee Lauder Companies is experiencing significant financial challenges in the first quarter of fiscal 2025, with lower sales and rising costs impacting its performance, particularly in Asia [1][12][15]. Financial Performance - Organic net sales in the Asia Pacific region fell by 11%, primarily due to weakened consumer sentiment in Mainland China and reduced spending in Hong Kong SAR [2][16]. - The company's global travel retail net sales also declined by double digits, reflecting a slowdown in the retail market and deteriorating consumer sentiment in China [11][15]. - Overall, organic net sales dropped by 5% in the first quarter, with expectations of a further decline of 6-8% in the second quarter [12][16]. Cost Environment - The Estee Lauder Companies faced a 190 basis point increase in operating expenses as a percentage of sales in the first quarter, driven by higher selling and advertising costs [17][18]. - The rising costs are expected to continue pressuring profitability in the upcoming months [17]. Market Outlook - The company has withdrawn its fiscal 2025 forecast due to uncertainties in market stabilization and recovery, particularly in China and Asia travel retail [12][18]. - Management anticipates a significant drop in quarterly adjusted earnings per share (EPS) by 60-77%, projecting earnings between 20 to 35 cents [12]. Stock Performance - The stock has declined by 18.4% over the past three months, which is steeper than the industry's drop of 13.7%, raising investor concerns [15][18]. - The Estee Lauder Companies currently holds a Zacks Rank of 5 (Strong Sell), indicating a lack of optimism from analysts regarding the stock's recovery [18].

Here's a look at Estée Lauder after a disappointing 2024.It's been a disappointing year for Estée Lauder (EL -0.46%) investors, as the cosmetics maker's stock is down almost 50% in 2024. Any time a market leader's stock drops significantly, it's worth investigating to see whether it's a possible bounce-back candidate.With this in mind, let's analyze what led to Estée Lauder's struggles and assess whether the stock is a buy, hold, or sell for 2025.Here's why Estée Lauder stock is downEstée Lauder's blemishes ...

KUALA LUMPUR, MALAYSIA - 2024/10/03: A couple walks by Estee Lauder store in Kuala Lumpur. (Photo by ... [+] Faris Hadziq/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesDespite an almost 50% decline in Estée Lauder stock (NYSE: EL) since the beginning of the year, at the current price of $75 per share, we believe the company could face a significant downside. Why is that? Well, Estée Lauder’s revenues would face a significant challenge due to lower consumer spending, amid h ...

Prada Group and EssilorLuxottica announce ten-years licensing renewalThe renewal is a testament to the strong confidence, trust and collaboration between the two companiesMilan, Italy and Paris, France (19 December 2024 – 08:00 am CET) – Prada Group and EssilorLuxottica announce today the renewal of their licensing agreement for the development, production and worldwide distribution of eyewear under the Prada, Prada Linea Rossa and Miu Miu brands.The existing agreement, expiring on December 31, 2025, has be ...

EssilorLuxottica signs an agreement to acquire Espansione Groupfor accelerating its growth in the med-tech space EssilorLuxottica strengthens its portfolio of advanced high-quality vision care instruments and certified medical technologies, with innovative solutions for dry-eye and other diseases Paris, France (16 December 2024) – EssilorLuxottica announces that it has entered into an agreement for the acquisition of Espansione Group, an Italy-based company specialized in the design and manufacturing of no ...

Dividend stocks can be attractive options for long-term investors, in part, because of the recurring income they can generate. But investors need to remember that dividend payouts aren't a guarantee, regardless of a company's track record of distributions. Investors need to consider a company's future growth prospects as part of their analysis on whether to invest for the long haul, even for dividend stocks.Three stocks that made drastic changes to their dividend payments this year that surprised some inves ...

The Estee Lauder Companies Inc. (EL) has experienced notable volatility in its stock performance. Over the past six months, the stock has slumped 39.2%, underperforming the industry’s decline of 36.5%. The Zacks Consumer Staple sector and the S&P 500 registered increases of 4.3% and 13.9%, respectively, highlighting EL’s underperformance during this period. This downward trend reflects persistent challenges in China and Asia travel retail.China Weakness Hinders EL’s MomentumThe Estee Lauder Companies began ...

It's not often that investors have the chance to buy stock of timeless brands at a huge discount, but Estee Lauder (EL 4.35%) may present such an opportunity.Even though Estee Lauder owns its namesake brand and many other household names such as Clinique, MAC, Tom Ford, and others, the stock has cratered 81% off its all-time highs, and it now trades at levels not seen since 2013.But at least one insider sees an opportunity -- and maybe a big one. The question is, should one follow this deep-pocketed investo ...

Estee Lauder (NYSE: EL ) is a longtime global leader in the beauty and cosmetics industry, holding one of the largest shares of the premium cosmetics market since its inception in 1946. The company operates a portfolio of 22I am an individual value investor pursuing a bachelor's degree in Finance at Florida State University with the goal of attaining my CFA. I have a distinct passion for equity research and fundamental analysis. Regarding my approach, I have been highly influenced by Tom Hayes, Founder, Cha ...

Estee Lauder (NYSE: EL ) owns some of the most prestigious personal care brands in the world. Despite its leading position, the business has faced challenges as of late, due to declining demand in Asia and market share losses in the West.Long-Term Focussed In-Depth Fundamental Analysis. - Former Associate at a $10 billion hedge fund, with 15 years of professional experience in equity markets. - Holds a First-Class Honours degree in Financial Economics from the University of London and is a CFA Level III can ...