The Estée Lauder Companies Inc. (EL) is a leading global beauty and cosmetics company, founded in 1946, that develops, manufactures and markets a broad portfolio of high-end skin care, makeup, fragrance and hair care brands across more than 150 countries, with its headquarters in New York City. Its market cap is around $34.2 billion. The Estée Lauder’s Q1 2026 earnings release is scheduled for Thursday, Oct. 30, before the market opens. Ahead of this event, analysts expect this cosmetics giant to report a ...

Core Insights - Estée Lauder Companies Inc. is recognized as a top stock in Michael Burry's portfolio, with a year-to-date gain of 25%, outperforming the S&P 500's 14% gain [1] Group 1: Company Performance - The company is establishing itself as a leader in the prestige beauty market, supported by a portfolio of 25 brands and operations in over 150 countries [2] - Estée Lauder boasts a gross profit margin of 74%, reinforcing its position as the second-largest player in the $160 billion prestige beauty market [2] Group 2: Analyst Ratings - Analysts at Bank of America Securities maintain a 'Buy' rating on Estée Lauder stock with a price target of $110, reflecting confidence in the company's recovery in Asia and its restructuring plan [3] - The 'Beauty Reimagined' plan is showing positive results, contributing to the company's strong performance [3] Group 3: Product Portfolio - Estée Lauder manufactures, markets, and sells a range of prestige beauty products, including skin care, makeup, fragrance, and hair care, under a diverse portfolio of luxury brands [4] - The company emphasizes innovation, quality, and end-to-end execution to create transformative beauty products and experiences for consumers globally [4]

Beauty Scene: “We had an insane amount of makeup in our house,” Sheena Zadeh says of her childhood. “I thought the bathroom was meant to be used for [storage].” https://t.co/hErPs7EfWC (Photo: Kosas Beauty) https://t.co/YjT7JCbODG ...

Industry Trend - Beauty industry reflects childhood experiences with makeup, indicating a trend towards early adoption and storage habits [1] Company Focus - Kosas Beauty is highlighted with a photo, suggesting a focus on visual marketing and brand association [1]

Core Viewpoint - Estée Lauder's stock has experienced a significant decline, dropping 6% in the past week and continuing a downward trend due to a reported 12% year-over-year decrease in fourth-quarter net sales and a profit forecast below analyst estimates [2][3] Financial Performance - The company has lost approximately $1.9 billion in market value over the past five days, bringing its current market capitalization to around $30 billion [3] - Despite the recent losses, Estée Lauder's stock remains 13.1% higher than its level at the end of 2024, while the S&P 500 has gained 11.9% year-to-date [3] Market Sentiment - The ongoing losing streak in Estée Lauder's stock has not inspired much investor confidence, indicating potential deeper concerns or changing sentiment in the market [6][8] - The company warned of a potential $100 million impact from tariffs, contributing to investor wariness [2] Product Portfolio - Estée Lauder offers a wide range of products, including skincare, makeup, fragrance, and hair care items, which are sold globally [4]

Company Overview - The Estée Lauder Companies Inc. (EL) has a market cap of $31.9 billion and is a global leader in the beauty industry, offering a wide range of products including skin care, makeup, fragrance, and hair care under brands like Estée Lauder, Clinique, and M·A·C [1] - EL is classified as a "large-cap" stock, with products distributed globally through various channels including department stores, specialty retailers, and online platforms [2] Stock Performance - EL shares have decreased 14.3% from their 52-week high of $103.44, but have increased 28.6% over the past three months, outperforming the S&P 500 Index's gain of 8.4% during the same period [3] - Year-to-date, EL stock is up 18.3%, surpassing the S&P 500's return of 10.7%, but has only risen 2.1% over the past 52 weeks, lagging behind the S&P 500's 19% surge [4] Financial Performance - In Q4 2025, Estée Lauder reported an adjusted EPS of $0.09 and revenue of $3.4 billion, which was better than expected; however, shares fell 3.7% due to a full-year adjusted EPS forecast of $1.90 - $2.10 that was below analysts' expectations [5] - Management indicated that a $100 million tariff-related impact and elevated global trade costs would negatively affect margins, alongside weaknesses in key markets such as the U.S., China, and Europe [5] Competitive Landscape - Rival Church & Dwight Co., Inc. (CHD) has underperformed compared to EL, with CHD stock declining 9.4% year-to-date and 10.1% over the past 52 weeks [6] - Despite recent underperformance, analysts maintain a moderately optimistic outlook on Estée Lauder, with a consensus rating of "Moderate Buy" and a mean price target of $91.43, representing a 3.1% premium to current levels [6]

Consumer Staples Sector Overview - The consumer staples sector is currently facing challenges such as cost pressures from inflation, high commodity prices, and tariffs, which have negatively impacted profit margins [1] - Real average wages have declined, leading consumers to reduce spending [1] - Investor focus has shifted towards high-growth industries like AI, resulting in high valuations and limited upside for consumer staples companies [1][2] Constellation Brands - Constellation Brands is a major player in the alcoholic beverages market, with brands like Modelo and Corona, and has seen a year-to-date decline of nearly 29%, making it an attractive value play with a price/sales ratio of 2.56 [4][5] - The global alcohol market is projected to reach approximately $3 trillion by 2030, and Constellation's strong international presence positions it well, particularly among Hispanic and Latino consumers [5] - Despite a troubling dividend payout ratio of -170.7%, Constellation has maintained a dividend yield of 2.56% and analysts expect earnings to grow by about 7% in the coming year, indicating potential upside of over 33% for STZ shares [7] Estée Lauder - Estée Lauder has experienced mixed results in its latest fiscal quarter, with both EPS and revenue declining year-over-year, although EPS exceeded analyst expectations [8][9] - The company is implementing cost-cutting measures aimed at saving up to $1 billion annually, which has led to a gross margin expansion of 230 basis points to 74% [10] - Estée Lauder's strong market position in prestige beauty and improved value metrics make it well-positioned to navigate external challenges [11] Mondelez International - Mondelez International maintains a strong market presence in the snack food and beverage sector, leveraging pricing power and brand loyalty to counteract volume slippage [13] - Despite a year-over-year decline in EPS, Mondelez's revenue grew by about 8% due to strong performance in emerging markets [14] - The company has a sustainable dividend payout ratio and is expected to generate over $3 billion in free cash flow this year, with analysts projecting more than 17% upside potential for MDLZ shares [15]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Cosmetics, Household & Personal Care - **Key Companies Discussed**: L'Oreal, Kao (4452 JP), Kose (4922 JP), Shiseido (4911 JP) [1][2] Core Insights - **US Market Outlook**: The outlook for the US cosmetics market remains uncertain, particularly in the makeup segment, which is experiencing weakness. There was a notable drop in demand in the second half of March, influenced by Latino consumer dynamics [5][6]. - **China Market Dynamics**: The Chinese market is described as flat, with local companies, including smaller players, gaining market share, especially in the Consumer/Mass market category. Travel retail sales for L'Oreal were down approximately 8% in Q1 [3][4]. - **Growth Projections**: L'Oreal's growth guidance for the Chinese market is considered optimistic at 4-5%, with a more realistic expectation of 2-3% for FY25 [4]. Additional Important Points - **Tariff Impact**: L'Oreal indicated that 50% of its US sales are manufactured domestically, with manageable tariff impacts on cost of goods sold (COGS). The tariff can be passed through at a retail price increase of 3-4% depending on the product portfolio [6]. - **Upcoming Briefings**: Key Q1 briefings for Kao, Kose, and Shiseido are scheduled for May 8, May 9, and May 12, respectively, which may provide further insights into the market conditions [1][2].