Estee Lauder (EL) Stock Forecast & Price Target

Estée Lauder Companies demonstrates a strong position in the global prestige beauty market with diversified revenue streams, including 51% from skin care and notable brands such as Estée Lauder, Clinique, and M.A.C. The company's recent performance highlights a solid second quarter, driven by the growth of luxury brands and an increase in organic sales across regions, alongside improvements in gross margin and effective cost control measures. Furthermore, Estée Lauder has made significant strides toward achieving its profit recovery and growth objectives, positioning itself for sustainable sales growth and robust operating margins in the coming years.

Estée Lauder Cos has reported a significant decline in organic sales across key regions, with a substantial 11% decrease in Asia-Pacific and a 6% drop in the Europe, Middle East, and Africa segment, driven by severe declines in travel retail. The company's guidance for the third quarter indicates expected sales to decline between 10% and 12% year-over-year on a reported basis, highlighting ongoing struggles, particularly in the Asia travel retail market. Additionally, the projected earnings per share for fiscal year 2025 has been revised downward to $1.36, reflecting the continued pressure on the company's performance across multiple segments.