Estee Lauder Companies Inc. Class A (EL)

The company's stock price experienced a significant decline of 41.8% from October 2024 to April 2025. In May 2025, the company reported a 10% year-on-year decline in net sales for Q3 fiscal 2025, with lower performance across all product categories. In February 2025, The Estée Lauder Companies launched its "Beauty Reimagined" strategic vision, aiming to restore sustainable sales growth and achieve a double-digit adjusted operating margin. The stock price had grown by 21.02% over the six months preceding August 25, 2025. As of October 3, 2025, the share price was $88.02, representing an 8.18% decline from October 4, 2024. The company is also reviewing its brand portfolio, with Tom Ford, Too Faced, and Dr. Jart+ identified as underperforming, resulting in a $1.3 billion impairment charge.

Demand for The Estée Lauder Companies' products exhibits seasonality, often influenced by holiday periods and promotional events. The company has historically performed well during major shopping festivals, such as the 11.11 Global Shopping Festival and Black Friday/Cyber Monday campaigns. October is a notable period for Estée Lauder, with various beauty free gifts and holiday blockbuster sets being launched at retailers. The company has experienced softer retail sales during holiday and key shopping moments for some fragrance brands, as noted in the year ending June 30, 2024. Sales declines were observed across all categories in Q3 Fiscal 2025, suggesting potential weaker demand outside of peak holiday seasons or due to broader market conditions.

The Estée Lauder Companies Inc. is a global leader in prestige beauty, manufacturing, marketing, and selling high-quality skincare, makeup, fragrance, and hair care products. The company has a diverse portfolio of over 25 prestige brands, including Estée Lauder, Clinique, MAC Cosmetics, La Mer, Jo Malone London, Aveda, Bobbi Brown, Origins, and Tom Ford Beauty. Its major product categories encompass skincare, makeup, fragrance, and hair care, with a wide range of products in each category.

The Estée Lauder Companies has a significant global presence, selling its products in approximately 150 countries and territories, with affiliate offices in over 50 countries. Its key operational regions include the Americas; Europe, the Middle East, and Africa (EMEA); the U.K. and Ireland; Asia/Pacific (APAC); and Mainland China. Products are distributed through various channels, including upscale department stores, specialty retailers, perfumeries, beauty salons and spas, authorized freestanding stores, online retail, and travel retail.

The Estée Lauder Companies has maintained its reputation for elegance, luxury, and superior quality, with its products celebrated for advanced formulations and timeless appeal. The company is recognized for blending cutting-edge research with artistry in its beauty solutions. Estée Lauder also demonstrates a commitment to inclusivity and sustainability, with a sustainability rating of 78 out of 100, which is well above the industry average for Household & Personal Products, particularly in environmental sustainability. No specific negative events directly impacting its brand reputation beyond general market performance were identified within the past year.

The ownership structure of The Estée Lauder Companies is a mix of institutional, individual, and founding family interests. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., Fmr Llc, Capital World Investors, State Street Corp, Eagle Capital Management Llc, Independent Franchise Partners LLP, and Invesco Ltd. The Lauder family maintains a dominant influence through its substantial voting power, holding approximately 84% of the total voting power as of the 2023 Annual Meeting. Leonard A. Lauder is a significant individual shareholder, owning 6.05 million shares, representing 1.68% of the company.