LRLCF - Estée Lauder: COVID To Blame For Weak Q3 FY21 And 8% Correction
- EL shares fell 7.9% on Monday after Q3 FY21 results disappointed, with an uneven sales discovery due to COVID resurgence in some regions.
- Group sales and EBIT exceeded pre-COVID FY19 figures, driven by Asia/Pacific and Skin Care each growing sales in the high 20s.
- Americas and EMEA were weak, and Makeup declined again, but countries where COVID was under control showed how a recovery is likely.
- EL has resumed investments and signed new retail partnerships in anticipation of a recovery. FY21 EPS is guided to be 14% above FY19.
- With shares at $288.93, we expect an exit price of $362 and a total return of 29% (8.1% annualized) by June 2024. Buy.
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Estée Lauder: COVID To Blame For Weak Q3 FY21 And 8% Correction