With a market cap of $38.5 billion. The Estée Lauder Companies Inc. (EL) is a global prestige beauty leader with a diversified portfolio spanning skincare, makeup, fragrance, and haircare. Founded in 1946 and headquarters in New York City, the company owns and manages a collection of iconic brands, including Estée Lauder, MAC, Clinique, La Mer, Bobbi Brown, and Jo Malone London, which are sold across department stores, specialty retailers, travel retail, and digital channels worldwide. Estée Lauder is se ...

Key Takeaways ELF is gaining share with affordable pricing, rapid innovation and a digitally native marketing model.EL is working to stabilize sales and rebuild margins through its Beauty Reimagined transformation plan.ELF reflects high-growth execution and EL diversified scale and recovery potential.e.l.f. Beauty, Inc. (ELF) and The Estee Lauder Companies Inc. (EL) are two influential players in global beauty, operating at different ends of the market while competing across several overlapping categories. ...

An updated edition of the Nov. 25, 2025, article.The U.S. beauty and cosmetics industry continues to hold its ground as a resilient corner of consumer spending. Even in slower economic periods, beauty tends to remain a priority as an affordable form of self-care. What keeps the sector attractive for investors is its ability to evolve, blending aesthetics with wellness, personalization and lifestyle trends that support steady, long-term demand.Key growth drivers remain firmly in place. Skincare and hair care ...

Core Viewpoint - The Lauder family is planning to sell over $1 billion worth of Estée Lauder Cos. stock to settle estate obligations following the death of Leonard A. Lauder [1][2]. Group 1: Stock Offering Details - Trusts affiliated with Leonard A. Lauder's descendants are proposing to sell 11,301,323 shares of Class A common stock through a registered public offering [1]. - J.P. Morgan Securities is acting as the sole underwriter for the offering [2]. - The proceeds from the offering will go entirely to the selling stockholders, not to Estée Lauder Cos., and will be used to settle estate obligations, including taxes and debts [2]. Group 2: Ownership and Influence - After the completion of the offering, the Lauder family will beneficially own 82 percent of the outstanding voting power of the company's common stock [3]. - Leonard A. Lauder, who passed away at age 92, was a significant figure in establishing Estée Lauder Cos. as a leader in the prestige beauty industry [3][4]. - Several family members, including William P. Lauder and Jane Lauder, are on the board of the company but are not involved in daily operations [4].

Group 1: Company Performance - Estée Lauder reported a 4% year-over-year increase in net sales to $3.48 billion, with a 9% growth in the China market [4][5] - Puma's third-quarter sales declined by 15.3%, with plans to cut 1,400 jobs by the end of 2026 due to ongoing sales challenges [6][7] - Moncler’s revenue for the first three quarters remained stable at €1.8413 billion, with direct-to-consumer channels showing slight improvement [8] Group 2: Corporate Actions and Changes - Prada denied rumors of acquiring Giorgio Armani, focusing instead on strengthening its own brand matrix, reporting a net revenue of €4.07 billion, an 8.9% increase year-over-year [2] - The Outnet was sold for $30 million, indicating a shift in strategy for LuxExperience, which acquired it through the purchase of YNAP [7] - Gucci continues to adjust its management structure, appointing new executives to enhance brand strategy and customer experience [11] Group 3: Market Developments - Eight Horses Tea Company listed on the Hong Kong Stock Exchange, closing its first day at HK$92 per share, an 84% increase from its IPO price, achieving a market capitalization of HK$7.9 billion [10] - Viking Cruises launched new Mediterranean routes tailored for Chinese tourists, enhancing its European offerings after ten years in the Chinese market [13]

Core Insights - The Estée Lauder Companies reported improved financial results, with net sales increasing by 4% to $3.5 billion in the first quarter ended September 30, surpassing estimates of $3.38 billion [2] - Net earnings rose to $47 million, a significant recovery from a loss of $156 million in the previous year, with adjusted diluted net earnings per share increasing to 32 cents, exceeding analysts' expectations of 18 cents [3] Financial Performance - Organic net sales grew by 3%, indicating a return to growth after a challenging previous year [2] - The company has implemented a restructuring program, resulting in cumulative charges of $852 million and a net reduction of over 4,000 positions [4] Strategic Initiatives - The Beauty Reimagined strategy aims to restore organic sales growth and improve profitability, with a focus on gaining market share in key areas [4] - Despite positive quarterly results, the company maintained its full-year outlook, forecasting sales growth between flat and 3% for fiscal 2026 [5][6] Market Performance - Skin care net sales increased by 3%, driven by La Mer and Estée Lauder, particularly in Asia travel retail [8] - Fragrance sales rose by 13%, while makeup and hair care sales declined by 2% and 7%, respectively [8] Regional Insights - The company experienced a 9% sales growth in mainland China, outperforming the market, while North America faced challenges with a low-single-digit decline [10] - The launch of MAC Cosmetics at Sephora in early 2026 is part of the company's strategy to diversify its retail offerings in the U.S. [11] E-commerce Expansion - The company is expanding its presence on Amazon, recently launching in Mexico, which is identified as a key growth market [12]

Summary of Key Points from the Conference Call Industry Overview - The Chinese beauty e-commerce market experienced a slight contraction in September with a Gross Merchandise Value (GMV) decline of -1.0% and a -2.6% decline in Q3, following a -2.2% decline in August [2][21] - Despite the overall market decline, tracked cosmetics leaders outperformed with +8.1% growth in September, up from +6.5% in August, and a solid +12% two-year CAGR [2][21] - The tracked beauty companies gained market share by +125 basis points (bps) in September, with Q3 growth improving to +6.5% compared to +3.5% in Q2 [2][21] Company Performance Highlights L'Oréal - Achieved +11% GMV growth in September, expanding market share by +177bps [4] - Q3 GMV growth accelerated to +10%, a significant improvement from flat growth in Q2 [4] Estée Lauder - Delivered impressive GMV growth of +16% in September and maintained strong momentum with a +14% increase in Q3 [5] - Market share gains of +299bps were driven by flagship brands La Mer and Estée Lauder [5] LVMH - GMV grew +7% YoY in September, gaining +122bps in market share [6] - The brand Dior was a key driver, with pricing increases offsetting volume declines [6] Proya - Experienced a -9% YoY decrease in September, with its flagship brand declining -11% [8] - Despite frequent new product launches, the company struggled to rejuvenate core brand growth [8] Giant Biogene - Declined -7% YoY in September, with flagship brand Kefumei falling -10% [9] - Consumer confidence was impacted by resurfaced product quality concerns [9] Shiseido - Overall online sales increased by +2% YoY in September, with flagship brand Shiseido seeing a +28% growth [10] - The premium line Clé de Peau declined -15% YoY [10] Beiersdorf - GMV performance rebounded with a +7% increase in September, following a -21% decline in August [11] - Eucerin achieved a +107% GMV increase in September [11] P&G Beauty Brands - Posted robust GMV growth of +21% in September, rebounding from +5% growth in August [12] - Significant market share gain of +148bps was noted [12] Unilever - Continued to face challenges with a -4% decline in September, following a -21% drop in August [13] - Market share gains were robust, increasing by +133bps [13] Henkel - Beauty Care division faced pressure with a -16% decline in September and -24% in Q3 [14] Investment Implications - Outperform ratings on Beiersdorf and Unilever, with Market-Perform ratings on Henkel and L'Oréal [16] - In the Chinese cosmetics market, Shiseido is rated Underperform, Proya is rated Market-Perform, and Giant Biogene is rated Outperform [18] Additional Insights - The upcoming 11.11 Singles Day festival is seen as a critical checkpoint for assessing brand market positions amid ongoing controversies [9] - The Douyin platform has been a significant contributor to market growth, while T+T continues to observe declines [21] This summary encapsulates the key points from the conference call, highlighting the performance of major companies within the beauty industry and the overall market dynamics.

Core Viewpoint - Estée Lauder reported its largest loss in two decades, with a net sales decline of 8% to $14.326 billion and a net profit drop of 390%, resulting in a loss of $1.133 billion for the fiscal year 2025 [1] Financial Performance - For fiscal year 2025, Estée Lauder's net sales were $14.326 billion, down 8% year-over-year, and net profit plummeted from a profit of $390 million to a loss of $1.133 billion [1] - The stock price fell nearly 15% following the earnings report, closing at $91.23, down from $374.2 at the beginning of 2022 [1] - The company anticipates a net sales growth of 2% to 5% and an adjusted earnings per share of $1.90 to $2.10 for fiscal year 2026, representing a year-over-year increase of 26% to 39% [9] Product Category Performance - Except for the fragrance category, which saw stable revenue, all other major categories experienced declines: skincare down 12%, scalp care down 10%, and makeup down 6% [7] - The skincare segment, previously a strong performer, faced significant declines, particularly from core brands Estée Lauder and La Mer [7] - The makeup category's decline was attributed to poor performance from M·A·C and a $159 million expense related to a talc lawsuit settlement [7] Market Trends and Consumer Behavior - Consumers are increasingly focused on product cost-effectiveness and ingredient efficacy, impacting Estée Lauder's premium positioning [8] - From 2021 to 2024, the compound annual growth rate for high-end beauty in China is projected to decline by 3%, with the market size shrinking from 257.8 billion yuan to 236.4 billion yuan [8] - The fragrance market in China is still in its infancy, with a penetration rate of only 5%, compared to 40% in Western markets, indicating significant growth potential [11] Strategic Changes and Future Outlook - Starting from Q1 of fiscal year 2026, Estée Lauder will report performance for mainland China as an independent region [5] - The company is undergoing significant restructuring, including a global layoff of approximately 7,000 positions, with over 3,200 already cut [9] - The CEO expressed confidence in achieving organic sales growth in fiscal year 2026 and aims to increase the proportion of innovative product sales to over 25% [9]

Core Viewpoint - Estée Lauder reported its largest loss in two decades for the fiscal year 2025, with net sales declining by 8% to $14.326 billion and a net profit drop of 390%, resulting in a loss of $1.133 billion [1][2] Group 1: Financial Performance - For fiscal year 2025, Estée Lauder's net sales were $14.326 billion, down 8% year-over-year, and net profit fell from $390 million to a loss of $1.133 billion [1] - The stock price dropped nearly 15% following the earnings report, with current shares at $87.72, down from $374.2 at the beginning of 2022 [1] - Morgan Stanley maintains a "neutral" bearish rating on Estée Lauder, predicting a potential decline of over 20% in the next 12 months [1] Group 2: Product Category Performance - All major product categories except for fragrance saw declines, with skincare and scalp care down 12% and 10% respectively, and makeup down 6% [2] - The fragrance category remained stable, with brands like Le Labo contributing to double-digit growth [5][6] - The skincare segment, previously a stronghold, faced significant declines attributed to underperformance of key brands like Estée Lauder and La Mer [2] Group 3: Market Trends and Consumer Behavior - Consumers are increasingly focused on cost-effectiveness and product efficacy, impacting Estée Lauder's high-end positioning [3] - The Chinese high-end beauty market is experiencing a compound annual growth rate decline of 3% from 2021 to 2024, with a market size reduction from 257.8 billion to 236.4 billion [3] - Emerging brands are capturing market share from traditional giants by offering innovative products and marketing strategies [3] Group 4: Strategic Changes and Future Outlook - Estée Lauder is undergoing significant operational changes, including a global workforce reduction of approximately 7,000 positions, with over 3,200 already cut [4] - The company projects a net sales growth of 2% to 5% for fiscal year 2026, with adjusted earnings per share expected to rise by 26% to 39% [4] - The company plans to enhance its product innovation, aiming for innovative products to account for over 25% of sales in fiscal year 2026 [3][4] Group 5: Fragrance Market Potential - The fragrance market in China is still in its infancy, with a penetration rate of only 5%, compared to over 40% in Western markets [5] - The fragrance segment is expected to grow at a compound annual growth rate of 21.78% from 2021 to 2026, outpacing most other beauty categories [5] - Despite current success, the fragrance business faces challenges from established luxury brands and shifting consumer preferences [7]

Core Viewpoint - Estée Lauder is facing significant challenges in its recovery path, with a decline in net sales and operating income amid economic downturns and geopolitical factors [1][3]. Financial Performance - For the fiscal year 2025, Estée Lauder reported a net sales decline of 8% year-over-year, totaling $14.33 billion (approximately ¥1028.01 billion) [1][2]. - The company's gross profit decreased by 5% to $10.60 billion, with a gross margin of 74.0% [2]. - Operating income turned into a loss of $785 million, marking a significant decline from a profit of $970 million in the previous year [2][6]. - The diluted net loss per share was $3.15, compared to earnings of $1.08 per share in the prior year [2]. Business Segment Performance - The only category to show growth was the fragrance segment, which remained flat with a slight increase, while skincare, makeup, and hair care categories experienced declines of 12%, 6%, and 10% respectively [4][6]. - The skincare segment's decline was attributed to decreased sales of brands like Estée Lauder and La Mer, alongside a drop in Asian travel retail sales [7][11]. - The makeup segment's downturn was primarily due to poor performance from brands like M·A·C and Too Faced [7][8]. Regional Performance - All regions reported declines in net sales, with the EMEA region experiencing the largest drop of 12%, followed by Asia/Pacific at 7% and the Americas at 4% [10][11]. - In mainland China, net sales fell by 6%, influenced by a challenging retail environment and low consumer sentiment [11][14]. Strategic Initiatives - Estée Lauder is undergoing a restructuring plan (PRGP) aimed at restoring profitability, which has already led to over 3,200 job cuts, with projections of total cuts reaching between 5,800 to 7,000 positions [19][22]. - The company anticipates that the restructuring will incur pre-tax costs between $1.6 billion to $3.3 billion [19]. Future Outlook - Despite current challenges, Estée Lauder's management expressed confidence in achieving organic sales growth in fiscal year 2026 and aims to rebuild operational profitability [3][22]. - The company plans to report its financials based on a new geographical structure starting Q1 of fiscal year 2026, which will include China as a separate reporting region [11][19].