Estee Lauder: Painful Quarter, But Shares Remain Sharply Undervalued
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Estée Lauder's Q2 results included a $773 million write-down on Tom Ford, yet the company beat expectations on both revenue and earnings. Despite weak demand, the gross margin improved, suggesting the 20% stock sell-off may be an overreaction.
February 06, 2025 | 2:45 pm
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Estée Lauder's Q2 results included a significant $773 million write-down on Tom Ford, but the company still managed to beat expectations on both revenue and earnings. The gross margin improved despite weak demand, indicating that the 20% stock sell-off may be an overreaction.
The $773 million write-down on Tom Ford is a significant negative, but Estée Lauder's ability to beat expectations on both revenue and earnings, along with an improved gross margin, suggests that the market's 20% sell-off may be an overreaction. This could lead to a short-term rebound in the stock price as investors reassess the company's financial health.
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IMPORTANCE 80
RELEVANCE 100