EssilorLuxottica strengthens its presence in the hearing space with the acquisition of an AI-driven tech startup in France Pulse Audition features technology that can embed AI-based speech enhancement into glasses Paris, France (2 January 2025) – EssilorLuxottica takes a leap forward in its innovation journey with the acquisition of Pulse Audition, a French startup delivering AI-based noise reduction and voice enhancement through algorithms allowing people with hearing impairment to better understand spee ...

Core View - The company is facing significant challenges, including a sharp stock price decline and a dividend cut, but it is addressing these issues from a position of strength in the affordable luxury niche [3][8] - Despite the bad news, there are positive aspects in the fiscal first-quarter update that investors are largely ignoring, suggesting potential for a turnaround [10][11] - The company is making tough moves, including a dividend cut and restructuring, to set the stage for a turnaround under new leadership [1][17][18] Financial Performance - Fiscal first-quarter 2025 organic sales were down 5% year over year, with a loss of $0.43 per share, compared to a profit of $0.09 per share in the prior year [14] - Excluding one-time items, earnings rose to $0.12 per share, up from $0.11 in the fiscal first quarter of 2024 [14] - The company achieved sales of nearly $3.4 billion in the fiscal first quarter of 2025, despite headwinds in key Asian markets [6] Strategic Moves - The company is reducing its dividend to create more financial flexibility for the incoming leadership team and has withdrawn longer-term guidance [1] - A new CEO is being brought in to reset market expectations and address the company's issues [15][17] - The company is attempting to get as much bad news out as quickly as possible, which is often referred to as a kitchen-sink quarter [17] Market Position - Estée Lauder is an industry leader in the affordable luxury niche, with a broad and globally diversified portfolio across skin care, hair care, makeup, and fragrance [5][6] - The company's products are expensive for their niche but are affordable relative to other luxury items, which is an important point of differentiation [5] Regional Performance - Sales growth in Europe, the Middle East & Africa, and the Americas was strong in the skin care segment, while Clinique saw a double-digit sales increase globally in the makeup segment [7] - In the fragrance business, sales were down just 1%, with Le Labo sales rising in the double digits [7] - Weak sales in China and the travel retail channel, related to the slow recovery from pandemic shutdowns, are significant challenges [9] Investor Perspective - The stock has lost roughly 80% of its value since hitting an all-time high in 2022, and the company announced a dividend cut of about 47% [8] - For contrarian investors, the current situation could present an opportunity, given the company's underlying fundamentals and potential for a turnaround [4][13] - Conservative investors may want to wait for the new CEO's plan and some progress toward the outlined goals [2][13]

Many of Estée Lauder's (EL 0.44%) perfumes and cosmetics make for ideal holiday gifts for folks who appreciate such products. Is the storied company's stock also a great buy for the season? If an analyst's latest take on the shares is any indication, the answer is indisputably yes.In the run-up to holiday season, that analyst reiterated her quite bullish stance on the company's prospects. Here's her argument for loading up on Lauder.Smells like a buyLast Friday, DA Davidson's Linda Bolton Weiser published a ...

Core Viewpoint - The Estee Lauder Companies is experiencing significant financial challenges in the first quarter of fiscal 2025, with lower sales and rising costs impacting its performance, particularly in Asia [1][12][15]. Financial Performance - Organic net sales in the Asia Pacific region fell by 11%, primarily due to weakened consumer sentiment in Mainland China and reduced spending in Hong Kong SAR [2][16]. - The company's global travel retail net sales also declined by double digits, reflecting a slowdown in the retail market and deteriorating consumer sentiment in China [11][15]. - Overall, organic net sales dropped by 5% in the first quarter, with expectations of a further decline of 6-8% in the second quarter [12][16]. Cost Environment - The Estee Lauder Companies faced a 190 basis point increase in operating expenses as a percentage of sales in the first quarter, driven by higher selling and advertising costs [17][18]. - The rising costs are expected to continue pressuring profitability in the upcoming months [17]. Market Outlook - The company has withdrawn its fiscal 2025 forecast due to uncertainties in market stabilization and recovery, particularly in China and Asia travel retail [12][18]. - Management anticipates a significant drop in quarterly adjusted earnings per share (EPS) by 60-77%, projecting earnings between 20 to 35 cents [12]. Stock Performance - The stock has declined by 18.4% over the past three months, which is steeper than the industry's drop of 13.7%, raising investor concerns [15][18]. - The Estee Lauder Companies currently holds a Zacks Rank of 5 (Strong Sell), indicating a lack of optimism from analysts regarding the stock's recovery [18].

Here's a look at Estée Lauder after a disappointing 2024.It's been a disappointing year for Estée Lauder (EL -0.46%) investors, as the cosmetics maker's stock is down almost 50% in 2024. Any time a market leader's stock drops significantly, it's worth investigating to see whether it's a possible bounce-back candidate.With this in mind, let's analyze what led to Estée Lauder's struggles and assess whether the stock is a buy, hold, or sell for 2025.Here's why Estée Lauder stock is downEstée Lauder's blemishes ...

KUALA LUMPUR, MALAYSIA - 2024/10/03: A couple walks by Estee Lauder store in Kuala Lumpur. (Photo by ... [+] Faris Hadziq/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesDespite an almost 50% decline in Estée Lauder stock (NYSE: EL) since the beginning of the year, at the current price of $75 per share, we believe the company could face a significant downside. Why is that? Well, Estée Lauder’s revenues would face a significant challenge due to lower consumer spending, amid h ...

Prada Group and EssilorLuxottica announce ten-years licensing renewalThe renewal is a testament to the strong confidence, trust and collaboration between the two companiesMilan, Italy and Paris, France (19 December 2024 – 08:00 am CET) – Prada Group and EssilorLuxottica announce today the renewal of their licensing agreement for the development, production and worldwide distribution of eyewear under the Prada, Prada Linea Rossa and Miu Miu brands.The existing agreement, expiring on December 31, 2025, has be ...

Core Insights - EssilorLuxottica has signed an agreement to acquire Espansione Group, enhancing its growth in the med-tech sector [2][4] - The acquisition focuses on non-invasive medical devices for diagnosing and treating dry-eye and other ocular diseases [2][3] - This move aligns with EssilorLuxottica's strategy to elevate industry standards and improve patient care solutions [4][5] Company Overview - Espansione Group is recognized as a med-tech pioneer, providing high medical standards in over 40 countries [3] - The company specializes in photobiomodulation technology and Intense Pulsed Light technology for ophthalmology and dermatology applications [3] Strategic Implications - The acquisition is expected to expand EssilorLuxottica's portfolio of medical devices and strengthen its position in the optical industry [5] - The transaction is subject to local regulatory review and customary closing conditions, indicating a structured approach to the acquisition process [5]

Dividend stocks can be attractive options for long-term investors, in part, because of the recurring income they can generate. But investors need to remember that dividend payouts aren't a guarantee, regardless of a company's track record of distributions. Investors need to consider a company's future growth prospects as part of their analysis on whether to invest for the long haul, even for dividend stocks.Three stocks that made drastic changes to their dividend payments this year that surprised some inves ...

The Estee Lauder Companies Inc. (EL) has experienced notable volatility in its stock performance. Over the past six months, the stock has slumped 39.2%, underperforming the industry’s decline of 36.5%. The Zacks Consumer Staple sector and the S&P 500 registered increases of 4.3% and 13.9%, respectively, highlighting EL’s underperformance during this period. This downward trend reflects persistent challenges in China and Asia travel retail.China Weakness Hinders EL’s MomentumThe Estee Lauder Companies began ...