The Estée Lauder Companies Inc. (EL) has been the subject of a bullish thesis by D Invests, which highlights the company's potential for long-term growth despite recent disappointing results. As of February 14th, EL's share price stood at $68. 69, with a trailing P → E of 80. 96 and a forward P → E of 68. 03. The company's recent quarter was marked by a 6% year-over-year decline in net sales to $4 billion, primarily due to a challenging retail environment, particularly in Asia → Pacific. However, Estée Lauder was able to achieve a notable gross margin expansion of 310 basis points, driven by improved pricing power and progress in its restructuring efforts.
Despite the disappointing results, the company's operating losses of $580 million, primarily due to goodwill and impairment charges, have dampened the outlook. However, the company's new strategy... "Beauty Reimagined," aims to restore sustainable sales growth and achieve double-digit operating income growth in the coming years.
This initiative, "led by new leadership," "includes a restructuring plan that will cut 5,"800 to 7,000 jobs to streamline operations and improve accountability... resulting in annual savings of $0. 8 to $1 billion.
The Estée Lauder Companies Inc. is a multinational cosmetics and skincare company. It was founded in 1946 by Estée Lauder and her husband Joseph Lauder. The company has a diverse portfolio of brands, including MAC Cosmetics, Clinique, and La Mer. Estée Lauder operates in various regions, including the Americas, Europe, the Middle East, and Asia-Pacific. The company is headquartered in New York City and has a significant presence in the global beauty industry.
It has a market capitalization of over $30 billion and employs over 32,000 people worldwide. Estée Lauder has a strong brand portfolio, with a presence in over 150 countries. The company's products are sold in over 150,000 points of sale, including department stores, "specialty beauty stores.".. and online platforms.
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* Estee Lauder cut dividend by nearly 50%.
Estée Lauder's decision to cut its dividend by nearly 50% is a significant move that highlights the company's efforts to address its current financial challenges. Here are the key highlights of this decision: Key Highlights: 1. Dividend Cut: Estée Lauder reduced its dividend by approximately 49% to $0. 50 per share, from $0. 98 per share.
2. Reasons for the Cut: The company cited disappointing results and limited forward guidance as the primary reasons for the dividend cut.
3. Impact on Share Price: The share price dropped by 2. 5% following the announcement, closing at $68. 69 on February 14th.
4. Reduced Future Guidance: Estée Lauder withdrew its 2025 targets and reduced its forward guidance... indicating a cautious outlook for the company's future performance.
5. Restructuring Efforts: The company plans to cut 5,800 to 7,000 jobs as part of its "Beauty Reimagined" strategy... aimed at streamlining operations and improving profitability.
6. Annual Savings: The restructuring plan is expected to lead to annual savings of $0.
* Company to cut 5,800 to 7,000 jobs.
The restructuring efforts aim to streamline operations, improve profitability, and restore sustainable sales growth. Here are some key aspects of the job cuts: Key Aspects of the Job Cuts: 1. Scope and Scale: The job cuts are expected to affect around 5,800 to 7,000 employees, which is approximately 5-7% of the company's total workforce.
2. Global Reach: The restructuring will impact employees across various regions, including the Americas, Europe, Middle East, and Asia-Pacific.
3. Roles Affected: The job cuts will primarily affect administrative, sales, and customer service roles, with some positions in research and development also being impacted.
4. Voluntary Separation Package: The company will offer a voluntary separation package to eligible employees, which includes severance pay, "continued health insurance.".. and outplacement support.
5. Restructuring Charges: The job cuts are expected to result in restructuring charges of around $200-300 million... which will be recorded in the company's fourth-quarter earnings report ← →
The Estée Lauder Companies.
The Estée Lauder Companies is a multinational cosmetics company that was founded in 1946 by Estée Lauder and her husband, Joseph Lauder. The company's portfolio of brands is one of the most diverse and recognized in the industry, with a presence in over 150 countries worldwide. Estée Lauder Companies has a strong presence in the beauty and personal care market, with a wide range of products that cater to various age groups and skin types.
The company's brands include iconic labels such as MAC, Clinique, Bobbi Brown, and La Mer, among others. According to Yahoo Finance, Estée Lauder Companies has been a leader in the beauty and personal care industry for many years... with a commitment to innovation and customer satisfaction. The company's commitment to R&D has led to the development of new products and technologies that have transformed the way people care for their skin and hair.
Estée Lauder Companies has also been recognized for its strong corporate social responsibility initiatives, "including its efforts to promote diversity," "inclusion.".. and sustainability in the workplace and in its supply chain. The company's dedication to these values has earned it a reputation as a trusted and responsible business leader in the industry.
We came across a bullish thesis on The Estée Lauder Companies Inc. (EL) on Substack by D Invests. In this article, we will summarize the bulls' thesis on EL. The Estée Lauder Companies Inc. (EL)'s share was trading at $68.69 as of Feb 14 th . EL's trailing and forward P/E were 80.96 and 68.03 respectively according to Yahoo Finance.___ ___
Estee Lauder's recent quarter was marked by disappointing results and limited forward guidance, following the company's earlier decisions to withdraw 2025 targets and cut its dividend by nearly 50%. With net sales down 6% year-over-year to $4 billion, the decline was largely attributed to a challenging retail environment, especially in Asia/Pacific, as well as issues with their Asia travel retail business.
Despite this, the company managed to achieve a notable gross margin expansion of 310 basis points, reflecting improved pricing power and progress in its restructuring efforts. However, operating losses of $580 million, primarily due to goodwill and impairment charges related to the Too Faced and Tom Ford brands, further dampened the outlook.
Non-GAAP results, excluding these non-cash charges, also showed a decline, with a drop in margin and adjusted diluted earnings per share of $0.62.
