EL - Embedded Expectations Analysis - 2021 03 24
The Estée Lauder Companies Inc. (EL:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 40.8x Uniform P/E, implying bullish expectations for the firm. Moreover, management is excited about their Dr. Jart+ acquisition, and confident about Virtual Try-On and their growth in ChinaSpecifically, management generated an excitement marker when saying the Dr. Jart+ acquisition added 2 percentage points to sales growth for the full fiscal year. In addition, they are confident Virtual Try-On combines technology and data with beauty advice on a global scale, that the increase of Virtual Try-On sessions can be attributed to its expansion to additional sites, and that their mature consumers will shop online regularly even after the pandemic. Furthermore, they are confident their business in China doubled its growth levels between Q1 and Q2, that they are working closely with retail partners to improve their online retail sites, and that their improved sales outlook is reflected in their expected EPS range between $1.10 and $1.20
Estee Lauder Companies is a manufacturer and marketer of skin care, makeup, fragrance and hair care products. The company's products are sold under a number of brand names including: Estee Lauder, Clinique, Origins, MzAzC, Bobbi Brown, La Mer, Jo Malone London, Aveda and Too Faced. The company is also the global licensee for fragrances, cosmetics and/or related products sold under various designer brand names. The company's products include skin care, makeup and related items such as compacts, brushes and other makeup tools, fragrance sold in various forms, hair care, and other ancillary products and services.
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