Estee Lauder (NYSE:EL) is due to announce its Q2 results next Friday. It had a stellar run in 2011 when it grew almost 3x faster than the global prestige beauty market with a double digit growth rate in sales and impressive margin growth. As a result, Estee Lauder’s stock swelled by more than 40% in 2011. Riding on excellent momentum, we expect to see further market share expansion and operating margin growth this quarter, leaving behind its competitors Revlon (NYSE:REV) and L’Oreal (PINK:LRLCY). The company also went for a 2:1 common stock split last week and paid 40% higher dividend last year.
Articles for Estee Lauder
Estée Lauder Update: Stock Split and Higher Dividend After Impressive Year
Graph ItNEW!Tuesday, January 24th, 2012 by Trefis Team
Estée Lauder (NYSE:EL) recently went for a two-for-one common stock split and additional shares were issued to the stockholders last Friday. This doubles the company’s common stock outstanding (that stood at about 192 million in Oct 2011). Accordingly, we have a Trefis price estimate of $58 for Estee Lauder stock. The company also paid a 40% higher dividend in December 2011, compared to December 2010. Riding on high growth momentum in the prestige beauty segment, consistent double digit growth rates and expanding market share despite weak macroeconomic conditions, the company’s stock swelled by more than 40% in 2011. Estee Lauder, one of the leading cosmetics and beauty care players globally, competes with others such as Revlon (NYSE:REV), L’Oreal (PINK:LRLCY) and Avon Products (NYSE:AVP).
Estée Lauder: Tapping the Fast Growing Global Anti-Age Creme Category
Graph ItNEW!Wednesday, December 7th, 2011 by Trefis Team
Estée Lauder (NYSE:EL) is scheduled to launch its Revitalizing Supreme Global Anti-Aging Creme, designed specifically for European women, in February 2012. This marks the company’s entry into the growing global anti-aging skin care market. Global anti-age refers to a single, complete product that can treat multiple signs of skin aging at one time, and is a fast-growing segment under anti-aging beauty products. Estée Lauder, one of the leading cosmetics and beauty care players globally, competes with others such as Revlon (NYSE:REV), L’Oreal (PINK:LRLCY) and Avon Products (NYSE:AVP).
Europe is a core market and a major focus of growth for prestige beauty products maker Estée Lauder. Growing in double digits, the firm currently generates >25% of its sales from Europe and leads the anti-aging and facial skin care segments in the region. The new Revitalizing Supreme Global Anti-Aging Creme, set for launch in February 2012, is particularly designed for European women. The new product is expected to be priced at €86 ($116) for 50 ml and €56 ($75) for the 30 ml version and is estimated to generate $70 million sales in 2012. The product’s success will also hasten the company’s efforts to tap into the demand for global anti-aging products in the North American and Asian markets, where P&G’s Olay dominates the category currently, mainly in the mass segment. Olay generated over $3 billion of P&G’s $80 billion sales last year.
Skin Care and Anti-Aging: Most Valuable Business for EL
By our analysis, Estee Lauder derives around 54% of its stock value from the skin care segment, which contributes 42% of the company’s total sales and is growing at double digits. Half of the company’s skin-care business comes from anti-aging products, of which global anti-aging has emerged as the largest, most dynamic and fastest growing sub-segment. Estée Lauder’s skin care market share grew from 5.5% in 2007 to 7% in 2011 and could reach 8.3% by 2018 based on our estimates. The segment is also the most profitable of all its beauty products, generating EBITDA margin of 19%, compared to the company average of 16%.
We have a revised $116 Trefis price estimate for Estee Lauder stock, which is almost in line with its current market price.
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Estee Lauder Update: Stock Run Fully Valued at $120
Graph ItNEW!Friday, December 2nd, 2011 by Trefis Team
Riding on high growth momentum in the prestige beauty segment, consistent double digit growth rates and expanding market share despite weak macroeconomic conditions, Estée Lauder‘s (NYSE:EL) stock has swelled by more than 40% this year. The stock jumped 18% within a day of announcing its latest quarterly results and has gained 18% within the last one month. Estee Lauder, one of the leading cosmetics and beauty care players globally, competes with others such as Revlon (NYSE:REV), L’Oreal (PINK:LRLCY) and Avon Products (NYSE:AVP).
Estee Lauder Earnings Shows the Beauty of Luxury Brands in Gloomy Times
Graph ItNEW!Thursday, November 17th, 2011 by Trefis Team
Estée Lauder (NYSE:EL) recently announced its Q1 results with 18% sales growth, broad-based across geographies and its leading brands, Estée Lauder, Clinique and M-A-C. It continued its growth momentum in the prestige beauty segment, growing in double digits much ahead of the market and expanding market share. It also continued to strengthen its bottom line, well on its way towards its revised operating margin target of 14.5-15% by 2014. Estee Lauder’s enviable double-digit revenue growth amid a weak macro backdrop and corresponding earnings growth is responsible for the stock’s impressive run over the past few quarters. Estee Lauder, one of the leading cosmetics and beauty care players globally, competes with others such as Revlon (NYSE:REV), L’Oreal (PINK:LRLCY) and Avon Products (NYSE:AVP).
Estee Lauder Earnings Preview: What We’re Watching Thursday
Graph ItNEW!Tuesday, November 1st, 2011 by Trefis Team
In fiscal 2011, Estee Lauder (NYSE:EL) grew at almost 3x the global prestige beauty market with double digit growth rates. It also achieved its cost-savings target two years ahead and has revised its goals to new operating margin target of 14.5-15% by 2014. Estee Lauder’s enviable double-digit revenue growth amid a weak macro backdrop and corresponding earnings growth is responsible for the stock’s impressive run. It will soon be releasing its Q1 results where we expect to see further market share expansion and operating margin growth. Estee Lauder, one of the leading cosmetics and beauty care players globally, competes with others such as Revlon (NYSE:REV), L’Oreal (PINK:LRLCY) and Avon Products (NYSE:AVP).
Estee Lauder Preview: Skin Care Business in Focus
Graph ItNEW!Tuesday, August 9th, 2011 by Trefis Team
With Estee Lauder’s (NYSE:EL) stock doubling over the last year, investors are eager to hear about the way forward in Estee Lauder’s upcoming earnings release on August 15th. Estee Lauder’s enviable double-digit revenue growth amid a weak macro backdrop and corresponding earnings growth is responsible for the stock’s impressive run. Estee Lauder, one of the leading cosmetics and beauty care players globally, competes with others such as Revlon (NYSE:REV), L’Oreal (PINK:LRLCY) and Avon Products (NYSE:AVP).
We value Estee Lauder with a $91.22 price estimate, which is in line with its current market price.
Chinese Customers to Shrug Off Price Hikes in the Name of Beauty
Graph ItNEW!Tuesday, August 2nd, 2011 by Trefis Team
Estee Lauder (NYSE:EL) recently raised prices to the tune of 8%-10% in China. This move comes much after the other leading global player in China, L’Oreal (PINK:LRLCY) increased prices by 5%-10% on its Christian Dior, Lancome, Biotherm and Chanel brands of cosmetics. We believe Estee Lauder raising prices in China will have negligible impact on its China sales given robust demand for beauty and skin care products, and they will provide some much needed relief from margin pressures due to rising commodity prices.
We value Estee Lauder with a $91.20 Trefis price estimate of its stock, at roughly 10% discount to its current market price.
Estee Lauder Earnings Preview, Looking at Margins & Skin Care
Graph ItNEW!Tuesday, May 3rd, 2011 by Trefis Team
Estee Lauder (NYSE:EL) plans to announce Q3 2011 earnings on May 5th. We watch to see if Estee Lauder will surprise again as it did in its Q2 announcement, which led to a swift 14% rally in its shares. Estee Lauder, the maker of premium beauty care products, competes with companies such as Revlon (NYSE:REV), Avon (NYSE:AVP) and L’Oreal (PINK:LRLCY). We value Estee Lauder with a $71.60 Trefis price estimate of its stock, at close to 24% discount to its current market price.
Estee Lauder Earnings Preview – What We’re Watching
Graph ItNEW!Friday, April 29th, 2011 by Trefis Team
Estee Lauder (NYSE:EL) is scheduled to release its fiscal Q3 2011 earnings on May 5th. The company has produced solid results over the past few quarters and it will be interesting to see whether these trends were sustained through the most recent quarter. Estee Lauder, the maker of premium beauty care products, competes with other big names like Revlon (NYSE:REV), Avon (NYSE:AVP) and L’Oreal (PINK:LRLCY).
Estee Lauder : All Articles
- Week of 2012-01-22
- 01/26/12 Estee Lauder’s Results Will be a Beauty
- 01/24/12 Estée Lauder Update: Stock Split and Higher Dividend After Impressive Year
- Week of 2011-12-04
- Week of 2011-11-27
- Week of 2011-11-13
- Week of 2011-10-30
- Week of 2011-08-07
- Week of 2011-07-31
- Week of 2011-05-01
- Week of 2011-04-24
- Week of 2011-04-10
- Week of 2011-04-03
- Week of 2011-03-20
- 03/23/11 Estee Lauder’s Skin Care Business Can Brighten Outlook
- 03/21/11 Estee Lauder: The Road Ahead
- Week of 2011-02-13
- Week of 2011-02-06
- Week of 2011-01-30
- Week of 2011-01-23
- 01/28/11 What’s Driving Estee Lauder’s Stock?
- Week of 2011-01-16
- 01/20/11 Unilever’s Alberto Culver Acquisition Adds Shine to Stock?
- 01/19/11 Despite Debt, Revlon Should Spend on Branding Color Cosmetics
- 01/17/11 P&G Targeting Gillette Market Share in India
- Week of 2011-01-09
- 01/14/11 Rise in Online and Mobile Shopping Can Threaten Avon’s Stock
- 01/13/11 Bath & Body Works’ Profit Margin to Help Carry Limited’s Stock
- Week of 2011-01-02
- 01/07/11 China, the Next Engine of Growth for Estee Lauder
- 01/06/11 P&G’s Growth Hinges on Good Execution in China and India
- Week of 2010-12-26
- Week of 2010-12-12
- 12/18/10 P&G’s Outlook Lifted by Market Share Gains
- 12/13/10 Estee Lauder – Makeup and Fragrance Trends Encouraging
- Week of 2010-12-05
- Week of 2010-11-28
- Week of 2010-11-21
- Week of 2010-08-22