The Estée Lauder Companies, has 60,000 employees with more than 1600 independent stores in 150 countries and a market capitalization of $117.55 bln which ranks it #213 on the Fortune 500. It recently announced that it has signed an agreement to increase its investment in Canada-based vertically integrated multi-brand company DECIEM, including The Ordinary and NIOD.
The company’s top sales segments are skin care products, followed by makeup, fragrances and hair products, which have earned a current total of $16.22 billion in net revenue with a goal of over $19B by year-end. It is expected to report organic growth of net sales of between 11% and 13% in the quarter, with adjusted earnings increased from 11.04%. On the other hand, management expects operating expenses to increase in the first fiscal quarter due to investments in the reopening (after staffing cuts and store closures) and the rebound in traditional retail around the world after the pandemic.
Estée Lauder Net Sales Worldwide 2010-2021, by Product Category
Source: https://www.statista.com/
The Estée Lauder Companies plans to report its earnings today (November 2) before the market opens and it is likely to see growth. An EPS of $1.70 is estimated, which would be 17.94% year-on-year, and income of $4.25B with 1 revision up and 15 down in the last 90 days.
Zacks ranks the Estée Lauder Companies #3 (“Hold”) and within the Top 40% of the cosmetics industry (#101 out of #251), with an ESP earnings of +0.38% from 48.7% in the last four quarters and from 52.9% in the last reported quarter. The most accurate EPS estimate is for $1.68 with $1.67 the current consensus, after the same quarter last year was $1.44, while quarterly revenue is set at $4.235B suggesting an 18.9% increase of the figure reported in the quarter of the previous year.
Q3 2021 Earnings per Share Estimate
Source: https://www.nasdaq.com/market-activity/stocks/el/earnings
On October 28, The Estée Lauder Companies announced key leadership appointments for its international businesses. These appointments will come into effect on February 1, 2022, due to the retirement of Cedric Prouvé next June 2022. One of the outstanding appointments will be that of his successor Peter Jueptner, current president in Europe, Middle East and Africa, to international president as part of the Executive Leadership Team Alignment (ELTA) while remaining part of the Executive Leadership Team (ELT) and will report directly to Fabrizio Freda, current president and CEO. In turn, EMEA Vice President and Managing Director of Markets, Nadine Graf, will be appointed Senior Vice President, Managing Director of EMEA and will join the company’s ELT, succeeding and reporting directly to Peter.
Estée Lauder announced on October 28 that it joined the sustainability challenge of the International Space Station National Laboratory as an exclusive partner, providing funding for the award-winning proposals that will be evaluated by a panel of expert judges on March 19 of next year at a Sustainability Challenge event that will be held at the Kennedy Space Center Visitor Complex. The project addresses the issue of plastic waste and focuses on reducing the introduction of plastic waste into the environment, the search for raw materials and alternative routes for polymer production beyond petrochemicals and the reduction of the manufacture of virgin plastics based on the research of biopolymers and environmentally responsible plastics alternatives as well as technology that help to improve the environment. In addition, the company has committed to having 75-100% of its containers enter the 5 R’s rule (Reduce, repair, recover, reuse, recycle) to be an ecologically friendly company by 2025.
“We are proud to be the exclusive partner of the ISS National Lab Sustainability Challenge, which funds research into forward-thinking plastics alternatives.”
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“As a world leader in the industry of beauty, we are committed to promoting scientific research and innovation for more sustainable business practices. We are excited to be part of an initiative that could be truly transformative for our brand, our beloved consumers, and the future of our planet.”- Stéphane de La Faverie, Global Brand President, Estée Lauder & AERIN, and Group President, The Estée Lauder Companies.
#EsteeLauder H4
#EsteeLauder has been maintaining a strong bullish rally since the beginning of February 2020 from its support of $150 to mark all-time highs in September at $347.56. From this historical maximum, the price fell to its psychological support of $300 without breaking it and bouncing until reaching highs at $333.52, a resistance where it marked highs in July. The current price is $325.44 with a bounce to the psychological support of $320. Resistances are at $333.52, historical highs and finally the psychological level $350. It currently stands at $320 already with a test of the psychological level and key $300, previous lows at $280 and up to the $250-$260 range. The price maintains the bullish channel with 2 false breaks of the bullish guideline in September and October. The price remains above the 21-, 50- and 100-period SMAs with a golden cross to the downside in September.
ADX has been below 25 since September, at 16.62, +DI at 14.87 and -DI at 18.70.
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Aldo Zapien.
Market Analyst – HF Educational Office – Mexico
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- https://seekingalpha.com/symbol/EL/earnings
- https://www.zacks.com/stock/quote/EL
- https://www.elcompanies.com/en/who-we-are/at-a-glance
- https://www.businesswire.com/news/home/20211028005742/en/
- https://www.nasdaq.com/press-release/estee-lauder-joins-the-international-space-station-national-labs-sustainability
- https://www.elcompanies.com/es/news-and-media/newsroom/press-releases/2021/10-28-2021-121518103
- https://www.nasdaq.com/market-activity/stocks/el/earnings
- https://www.zacks.com/stock/news/1819966/whats-in-store-for-the-estee-lauder-companies-el-q1-earnings?art_rec=quote-stock_overview-zacks_news-ID03-txt-1819966
- https://newsfragancias.com/profesionales/estee-lauder-ajusta-su-estructura-recortes-covid-19/
