Estee Lauder Companies Inc. Class A (EL)

The past six months have seen significant volatility for EL's stock. In October 2024, the company withdrew its annual forecast due to a slower-than-anticipated recovery in China and reduced consumer spending, leading to a substantial stock price drop. The company also cut its dividend by almost half in its fiscal first quarter of 2025 to conserve cash for restructuring efforts. In October 2025, the stock experienced a decline despite surpassing EPS expectations, driven by a year-over-year revenue contraction. Goldman Sachs upgraded EL to a "buy" rating in early October 2025, citing improving business trends in China, which contributed to a rally in the stock. The company's fiscal third-quarter 2025 organic sales declined, with travel retail shrinking organically.

Demand for The Estée Lauder Companies' products exhibits clear seasonality, with the holiday season being a critical period. The company strategically capitalizes on this by offering exclusive gift sets and limited-time promotions with holiday-themed packaging.

The Estée Lauder Companies Inc. (EL) is a global leader in the prestige beauty industry, specializing in the manufacturing, marketing, and sale of high-quality skincare, makeup, fragrance, and hair care products. The company's extensive portfolio includes over 20 brands, such as Estée Lauder, Clinique, La Mer, MAC Cosmetics, Bobbi Brown, Too Faced, Deciem, Jo Malone London, Le Labo, Aveda, and Tom Ford Beauty.

The Estée Lauder Companies operates in approximately 150 countries and territories, with affiliate offices in over 50 countries. Effective July 1, 2025, the company reorganized its geographic reporting into four new regions: The Americas; Europe, the U.K., Ireland, and Emerging Markets (EUKEM); Asia/Pacific; and Mainland China.

The Estée Lauder Companies has faced a challenging year, with its brand reputation impacted by slowing sales, particularly in Asia, and concerns about a lack of innovation. The company is undergoing a significant operational transformation, which includes layoffs and a substantial investment in restructuring. To revitalize its brands, Estée Lauder is increasing its advertising budget and leveraging artificial intelligence (AI) to target consumers and accelerate product innovation. A notable event for brand visibility was the collaboration with NASA, sending the Advanced Night Repair serum to the International Space Station.

Major institutional owners of The Estée Lauder Companies Inc. include Vanguard Group Inc. Additionally, Callan Family Office LLC acquired a new stake in the company in October 2025.