- Estée Lauder's rebound from COVID-19 continued in Q1 FY22, with sales up double digits organically in all regions and up 18% for the group.
- Management reaffirmed the outlook for a 12%-15% EPS growth in FY22, and 2-year growth rates showed long-term structural growth.
- The recovery from COVID-19 is still incomplete, which means there is sizeable potential left in key regions and segments.
- The dividend has been raised 13% (to a 0.7% Dividend Yield), and buybacks have continued. Shares are at 46x expected FY22 EPS.
- With shares at $338.62, we expect a total return of 30% (7.5% annualized) by June 2025, attractive for such a unique asset. Buy.
For further details see:
Estée Lauder: Double-Digit Sales Rebound In Q1 FY22, More To Come In Full Year