No Guidance, Poor Result, And Management Shake Up Is Scaring Away Estee Lauder (EL) Investors

Insider Monkey11-08

The recently announced financials of The Estee Lauder Companies Inc. unveil significant financial strain stemming from macroeconomic challenges in China and the Asian travel sector market. Management ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2481036488?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/064.DYQUAyGOpEqD1NLwrw--~B/aD02Njc7dz0xMDAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/insidermonkey.com/bc5e03694214365956f02e4b7dfaf46d","is_english":true,"pubTime":"2024-11-08 23:37","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2481036488","market":"us","top_or_hot":-1,"title":"No Guidance, Poor Result, And Management Shake Up Is Scaring Away Estee Lauder (EL) Investors","media":"Insider Monkey","content":"<div>\n<p>The recently announced financials of The Estee Lauder Companies Inc. unveil significant financial strain stemming from macroeconomic challenges in China and the Asian travel sector market. Management ...</p>\n\n<a href=\"https://finance.yahoo.com/news/no-guidance-poor-result-management-153724148.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>No Guidance, Poor Result, And Management Shake Up Is Scaring Away Estee Lauder (EL) Investors</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNo Guidance, Poor Result, And Management Shake Up Is Scaring Away Estee Lauder (EL) Investors\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-08 23:37 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/no-guidance-poor-result-management-153724148.html><strong>Insider Monkey</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The recently announced financials of The Estee Lauder Companies Inc. unveil significant financial strain stemming from macroeconomic challenges in China and the Asian travel sector market. Management ...</p>\n\n<a href=\"https://finance.yahoo.com/news/no-guidance-poor-result-management-153724148.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4581","symbol_name":"高盛持仓","start_time":0,"source_url":"https://finance.yahoo.com/news/no-guidance-poor-result-management-153724148.html","article_id":"2481036488","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/064.DYQUAyGOpEqD1NLwrw--~B/aD02Njc7dz0xMDAwO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/insidermonkey.com/bc5e03694214365956f02e4b7dfaf46d"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481036488","pubTimestamp":1731080244,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"The recently announced financials of The Estee Lauder Companies Inc. unveil significant financial strain stemming from macroeconomic challenges in China and the Asian travel sector market. Management is unsure how long it will take the Chinese market to recover. Considering these factors and the dividend cut, it seems best to stay away from the company’s stock in the short term.Estee Lauder Companies Inc., established in 1946 by Estee Lauder and her husband Joseph Lauder, is a high-end entity in the beauty industry, offering skincare, makeup, fragrance, and hair care products. It is incomparable with its steadfast dedication to excellence, innovation, and strategic marketing which has enabled the giant to own a wide portfolio of luxury labels.The company boasts a diverse product offering that highlights its industry leadership. In the skincare segment, brands like Estee Lauder, Clinique, and La Mer account for around 51% of fiscal 2024 sales.While China and Asia Travel Retail are mainl","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4581":"高盛持仓","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","BK4504":"桥水持仓","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","LU0106831901.USD":"贝莱德世界金融基金A2","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","ISBC":"投资者银行","BK4183":"个人用品","BK4548":"巴美列捷福持仓","EL":"雅诗兰黛","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","LU0006306889.USD":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","BK4127":"投资银行业与经纪业","LU0106261372.USD":"SCHRODER ISF US LARGE CAP \"A\" ACC","LU2404859741.USD":"FUNDSMITH EQUITY FUND \"R\" (USD) INC","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0225283273.USD":"SCHRODER ISF GLOBAL EQUITY ALPHA \"A\" (USD) ACC","BK4516":"特朗普概念","LU2404859667.USD":"FUNDSMITH EQUITY FUND \"R\" (USD) ACC","LU1548497426.USD":"安联环球人工智能AT Acc","LU0971096721.USD":"富达环球金融服务 A","LU2552382215.SGD":"WELLINGTON US BRAND POWER \"A\" (SGDHDG) ACC","LU0690374961.EUR":"FUNDSMITH EQUITY \"R\" (EUR) INC","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","LU2552382058.USD":"WELLINGTON US BRAND POWER \"A\" (USD) ACC","BK4585":"ETF&股票定投概念","LU0690374615.EUR":"FUNDSMITH EQUITY \"R\" (EUR) ACC","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU2552382132.HKD":"WELLINGTON US BRAND POWER \"A\" (HKD) ACC","BK4534":"瑞士信贷持仓","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4211":"区域性银行","BK4558":"双十一","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","BK4588":"碎股","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","LU0267386448.USD":"FIDELITY FIRST ALL COUNTRY WORLD \"A\" (USD) INC"},"translate_title":"没有指导、业绩不佳和管理层变动吓跑了雅诗兰黛(EL)投资者","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ISBC":1,"EL":1},"content_text":"The recently announced financials of The Estee Lauder Companies Inc. unveil significant financial strain stemming from macroeconomic challenges in China and the Asian travel sector market. Management is unsure how long it will take the Chinese market to recover. Considering these factors and the dividend cut, it seems best to stay away from the company’s stock in the short term.\nEstee Lauder Companies Inc., established in 1946 by Estee Lauder and her husband Joseph Lauder, is a high-end entity in the beauty industry, offering skincare, makeup, fragrance, and hair care products. It is incomparable with its steadfast dedication to excellence, innovation, and strategic marketing which has enabled the giant to own a wide portfolio of luxury labels.\nThe company boasts a diverse product offering that highlights its industry leadership. In the skincare segment, brands like Estee Lauder, Clinique, and La Mer account for around 51% of fiscal 2024 sales.\nFragrance accounts for 16% of the total sales and makeup lines like MAC Cosmetics or Bobbi Brown make up 29%. The remaining 4% of sales come from specialized hair care brands like Aveda and Bumble and Bumble.\n Sorbis/Shutterstock.com \nTheir products are distributed through department stores, beauty retailers, select e-commerce platforms, and company-operated outlets. Direct sales through department stores, particularly beauty retailers, e-commerce platforms, and dedicated brand stores, are among the main revenue drivers.\nThe company serves a diverse market, which is principally consumer retail looking for beauty and skincare products worthy of the price point at primary physical department stores like Sephora, Ulta Beauty, and Nordstrom. By adopting a luxury beauty strategy, Estee Lauder generates its revenue from the United States (30%), Europe, the Middle East, and Africa (39%), and Asia-Pacific (31%). This shows how the company’s products are well-received in various places across the globe.\nDespite all the good things about the company’s products, it seems to be struggling on the financial front. Recent results show that the company is witnessing a dip in sales owing to uncertainty in the Chinese and other Asian markets. It has also withdrawn its future guidance as it shakes up its upper management, a red flag for many investors.\nThe demand strain reflects the company’s challenges, particularly in China, where consumer confidence has diminished and the Asian travel sector struggles to meet expectations.The skincare segment, which brings in the largest share of revenue was down 8%. The decline is expected to continue at a rate of 6%-8%.\nAs a result, the company needs some breathing space, which the announced dividend cuts will provide, something investors didn't like. The stock is down over 25% since announcing the quarterly results.\nWhile China and Asia Travel Retail are mainly blamed for the underperformance of the company, the ability of the company to recoup solely hinges on the leadership’s response to such shocks. The adoption of product repositioning and enhancing distribution strategies, like the recent launch of its Amazon Premium Beauty store, shows the management is working on improving the company’s position in the market. Presence on the largest e-commerce platform in the world will likely help the company gain more visibility.\nThat being said, investing in the company may not be preferred for short-term gains. Until the beauty powerhouse unveils a solution to declining sales and shifts focus toward sustainable, quality growth, investors would rather stay away.\nEstee Lauder is not on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held EL at the end of the second quarter which was 51 in the previous quarter. While we acknowledge the potential of EL as a leading investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as EL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.\nREAD NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.\nDisclosure: None. This article was originally published at Insider Monkey.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"Executive Changes","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481036488"}