Stock Pulse
Estee Lauder (EL) is struggling with declining organic sales for eight consecutive quarters, shrinking operating margins, and falling EPS [1]. The company launched a "Profit Recovery and Growth Plan" and a "Beauty Reimagined" vision to address these issues, focusing on restructuring, cost-cutting, and digital growth [3], [5]. Despite a recent 12.2% stock surge due to a broader market rally [2], the company's underlying performance remains weak, with projected declines in revenue and earnings [2], [5]. Estee Lauder also faces headwinds including a class-action lawsuit regarding misleading shareholders about their dependence on China's gray market [6], broader macroeconomic challenges and increased competition [4], [7], and ongoing difficulties in key markets like China and travel retail [5], [9].