Weak China Sales Hit Estee Lauder's Q4, CEO To Retire
Portfolio Pulse from Lekha Gupta
Estee Lauder's Q4 results show a 7% sales growth, but weak China sales impact the outlook. CEO Fabrizio Freda will retire at the end of FY25. The company expects a challenging FY25 with lower EPS and sales growth forecasts. Investors can gain exposure through ETFs like KLXY and MGRO.
August 19, 2024 | 12:40 pm
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NEGATIVE IMPACT
Estee Lauder reported a 7% sales growth in Q4, but weak sales in China impacted the outlook. The CEO will retire at the end of FY25. The company expects lower EPS and sales growth for FY25.
Despite a 7% sales growth, weak sales in China and a lower-than-expected FY25 EPS outlook are negative indicators. The CEO's retirement adds uncertainty. These factors likely contribute to a short-term negative impact on EL's stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
KraneShares Global Luxury Index ETF, which includes Estee Lauder, may be impacted by Estee Lauder's weak outlook due to China sales.
Estee Lauder's weak outlook, particularly due to China sales, could negatively impact KLXY, which includes Estee Lauder in its holdings.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
VanEck Morningstar Wide Moat Growth ETF, which includes Estee Lauder, may be affected by Estee Lauder's weak FY25 outlook.
Estee Lauder's weak FY25 outlook could negatively affect MGRO, which holds Estee Lauder shares.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50