Estée Lauder beats revenue estimates, reports profit per share above expectations, aiming to return to growth
From StockStory: 2025-05-14 17:55:00
Estée Lauder (NYSE:EL) reported Q1 CY2025 revenue of $3.55 billion, beating analyst estimates by 1.2%, but marking a 9.9% decline from the previous year. Non-GAAP profit per share came in at $0.65, significantly above expectations. Management highlighted market share gains in the U.S., China, and Japan, driven by product innovation and strategic marketing. Looking ahead, the company aims to return to growth next year through continued execution of its Beauty Reimagined strategy. StockStory’s analysis includes insights on travel retail decline, market share gains, product innovation, digital expansion, and cost restructuring.
Key takeaways from Estée Lauder’s Q1 CY2025 earnings call include challenges in travel retail, market share gains in core regions, product innovation driving growth, digital and channel expansion, and focus on cost structure overhaul. Management outlined strategies to address travel retail decline, mitigate tariff risks, improve efficiency, and achieve double-digit operating margins in the future. Analyst questions focused on inventory alignment, growth assumptions, supply chain shifts, cost savings potential, and balancing margin targets with growth. Key future catalysts include market share trends, inventory normalization, new product launches, and supply chain efficiency.
Estée Lauder trades at a forward P/E ratio of 29.4x, prompting investors to assess whether the company is at an inflection point for investment. StockStory offers a free research report to help investors make informed decisions. Amid market uncertainty, StockStory recommends exploring high-quality stocks with strong momentum potential, providing a curated list of top-performing stocks that have outperformed the market over the last five years. Investors can discover the next big winner by leveraging StockStory’s insights and analysis.
Read more at StockStory: Market Share Gains and Margin Initiatives Amid Ongoing Headwinds