EL - Estée Lauder: Multiple Engines Powering Sequential Recovery Each Quarter
- EL’s Q3 (Q1 FY21) results last week showed a year-on-year sales decline of 9% (excluding FX), better than expected and stabilizing sequentially.
- Sales growth during the COVID-19 outbreak has been powered by online, APAC and Skincare, each growing double digits year-on-year.
- EL expects to continue to see a sequential improvement in sales, and guides to an EPS for next quarter that is 6% higher than this quarter.
- At $246.21, shares have gained 51% since our initial Buy rating in April and now trade at 41.2x CY19 EPS and a 0.9% Dividend Yield.
- Near-term returns are now more limited but, given EL’s unique quality and long-term growth, we reiterate our Buy rating.
For further details see:
Estée Lauder: Multiple Engines Powering Sequential Recovery Each Quarter