A BRIEF ANALYSIS OF The Estée Lauder Companies Inc. (EL)

Business

The Estée Lauder Companies Inc., founded in 1946 by Estée and Joseph Lauder, is one of the world’s leading manufacturers, marketers, and sellers of

• Quality skin care,
• Makeup,
• Fragrance and
• Hair care products. 

Their products are sold in approximately 150 countries and territories under a number of theyll-known brand names including: Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown, La Mer, Aveda, Jo Malone London, Too Faced, Dr.Jart+, and The Ordinary. Estêe Lauder are also global licensee of brand names for fragrances and/or cosmetics, including Tom Ford and AERIN. Each brand is distinctly positioned within the market for cosmetics and other beauty products. Estêe Lauder are a leader in the beauty industry due to the global recognition of their brand names, their excellence in product innovation, strong position in key geographic markets and the consistently high quality of their products and “High-Touch” services. They sell their prestige products through distribution channels that complement the luxury image and prestige status of their brands, and they provide “High-Touch” consumer experiences across their distribution channels. Their products are sold on.

• Their own and authorized retailer theybsites,
• On third-party online malls, in stores in
• Airports,
• In duty-free locations and in our own authorized freestanding stores.

In addition, their products are sold in brick-and-mortar retail stores, including department stores, specialty-multi retailers, upscale perfumeries and pharmacies and prestige salons and spas. Estée Lauder strategy of pursuing selective distribution heightens the aspirational quality of their brands.

Estee Lauder Brands

​Skin Care - products address various skin care needs. These products include moisturizers, serums, cleansers, toners, body care, exfoliators, acne care and oil correctors, facial masks, and sun care products.
Makeup - Their full array of makeup products includes lipsticks, lip glosses, mascaras, foundations, eyeshadows, nail polishes and powders. Many of the products are offered in an extensive palette of shades and colors. They also sell related items such as compacts, brushes, and other makeup tools.
 
Fragrance - They offer a variety of fragrance products. The fragrances are sold in various forms, including eau de parfum sprays and colognes, as theyll as lotions, powders, creams, candles, and soaps that are based on a particular fragrance.
 
Hair Care - Their hair care products include shampoos, conditioners, styling products, treatment, finishing sprays and hair color products.
Other - They also sell ancillary products and services.

Manufacturing, Warehousing and Raw MaterialsThe company manufactures its products primarily in its own facilities located in the

• United States,
• Belgium,
• Switzerland,
• the United Kingdom, and Canada.

They also utilize global third-party manufacturing networks. They continuously improve their manufacturing processes, seek sourcing opportunities, and aim to enhance innovation, efficiency, environmental sustainability, supply sufficiency, and cost reduction. Their modern plants are highly automated.

​To meet the increasing demand and expedite market access in the Asia/Pacific region, they began constructing a new manufacturing facility near Tokyo in fiscal 2021. The first phase of construction was completed in fiscal 2022, with the remaining site expected to be operational by early fiscal 2024. While they believe their current manufacturing network is sufficient, they strive to enhance capacity, technology, and productivity to align with regional sales demand. They have a flexible global distribution network managed by themselves or third-party logistic providers.

​This network is designed to adapt to changing customer demands while maintaining service levels. They continuously evaluate and adjust their physical distribution network, especially to anticipate and respond to shifts in distribution channels. They have strategically positioned regional and local distribution centers worldwide, including those operated by third parties, to ensure efficient product delivery to customers and consumers. In fiscal 2022, they opened a state-of-the-art distribution center in Switzerland to support the growth of their travel retail business and promote sustainability initiatives. They are confident that their manufacturing and distribution capabilities can meet annual and long-term strategic objectives, although short-term fluctuations in demand may temporarily challenge capacity for specific product subcategories.

Key Data

THE ESTÉE LAUDER COMPANIES INC Technnical Analysis

Historical daily share price chart and data for the Estee Lauder  since 2019 adjusted for splits. The latest closing stock price for Estee Lauder as of August 04, 2023, is $172.

• The all-time high Estee Lauder's stock closing price was $370 on December 01, 2021.
• Estee Lauder's five years median stock price is $202.8 October 2020, which is 18% above the current share price.
• The Estee Lauder's  5 years third quantile stock price is $260 in February 2022, which is 51 % above the current share price.

Estee Lauder's 1000 trading days stock distribution

The following tables provide a summary of

The Esêe Lauder Company.  Income Statements
​

​The Estée Lauder income statement represents the revenue for a business over the last four periods. Here's how the revenue changes over the four periods. Based on this data, we can observe a generally increasing trend in revenue from year 2020 to 2022, with a slight decrease in year 2023. It indicates that the business experienced growth in its revenue initially, followed by a slight decline.

SALES

​Competition

The company faces significant competition in the markets where it sells its skin care, makeup, fragrance, and hair care products. Consumers consider various factors such as brand recognition, product quality, accessibility, distribution channels, and price when choosing among competing products. Marketing strategies, in-store and online experiences, product demonstrations, and new innovations also influence consumers' purchasing decisions. The company acknowledges the growing interest in responsibly sourced and environmentally sustainable products, which aligns with their social impact and sustainability efforts, providing a competitive advantage.

The company competes with both global and local companies, including major multinational manufacturers and marketers such as

• L’Oréal,
• Unilever,
• Procter & Gamble, Shiseido,
• LVMH, Natura & Co., Chanel,
• Beiersdorf, Coty, Kao Corp, and LG Household & Health Care.

Independent brands, supported by private-equity investors, and certain retailers with their own beauty brands also pose competition. It is worth noting that some competitors have ownership interests in retailers that are customers of the company. Overall, the company is a leading player in the industry, thanks to its diverse brand portfolio and presence on various sales channels.

Performance

​The quarterly data shows a mix of positive and negative growth rates. There are quarters with significant positive growth, such as Jun. 19 (23.5%), Sep. 19 (20.1%), and Mar. 21 (33.0%). However, there are also quarters with significant negative growth, such as Jun. 20 (-13.6%), Mar. 22 (-37.3%), and Jun. 22 (-46.0%). Overall, the data indicates fluctuations in growth over the specified period, with both periods of expansion and contraction.

Financial Health of Estee Lauder

​In summary, the company's total assets, total liabilities, and equity/net worth have changed over the three years. It is important we note that this data alone does not provide enough information to draw definitive conclusions about the financial health or performance of the company. Additional financial statements, such as income statements and cash flow statements, would be necessary for a more comprehensive analysis.
These trends indicate fluctuations in Estee Lauder assets and liabilities over the three-year period. However, we prefer to see assets are greater than liabilities.

Estee Lauder Price forecast