Estée Lauder Companies (EL) has a market cap of $32.3 billion. It fell 0.66% to close at $88.15 per share on September 23, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were 0.49%, -2.3%, and 1.1%, respectively, on the same day. EL is trading 0.66% below its 20-day moving average, 3.3% below its 50-day moving average, and 2.6% below its 200-day moving average.
Related ETF and peers
The iShares Russell 3000 ETF (IWV) invests 0.09% of its holdings in Estée Lauder. The ETF tracks a cap-weighted index that measures the investable US equities market, covering the entire market-cap spectrum, including micro-caps. The YTD price movement of IWV was 7.9% on September 23.
The market caps of Estée Lauder’s competitors are as follows:
Latest news on Estée Lauder
Estée Lauder acquired GLAMGLOW in January 2015 and announced some management changes in this brand. Beth DiNardo will serve as global brand president of Smashbox and GLAMGLOW, effective October 15, 2016. DiNardo will report to John Demsey, Estée Lauder Companies’ executive group president.
Paula Pontes will serve as senior vice president and global general manager of GLAMGLOW, effective November 1, 2016. Pontes will report to Beth DiNardo.
Estée Lauder’s performance in fiscal 4Q16
Estée Lauder reported fiscal 4Q16 net sales of ~$2.7 billion, an increase of ~5.2% over the net sales of ~$2.5 billion in fiscal 4Q15. Sales of skincare, makeup, and haircare products rose 2.0%, 10.2%, and 2.7%, respectively. Sales of fragrance products fell 2.4% between fiscal 4Q15 and fiscal 4Q16.
The company reported restructuring and other charges of $99.4 million in fiscal 4Q16. Its operating income fell 37.1%. Net income and EPS (earnings per share) fell to $93.5 million and $0.25, respectively, in fiscal 4Q16, compared with $153.0 million and $0.40, respectively, in fiscal 4Q15.
Fiscal 2016 results
In fiscal 2016, EL reported net sales of $11.3 billion, an increase of 4.6% year-over-year. Its gross profit margin and operating income rose 0.15% and 0.25%, respectively, in fiscal 2016.
Its net income and EPS rose to $1.12 billion and $2.96, respectively, in fiscal 2016, compared with $1.09 billion and $2.82 in fiscal 2015.
Estée Lauder’s cash and cash equivalents fell 10.5% and its inventory and promotional merchandise rose 3.9% in fiscal 2016. Its current ratio fell to 1.6x and its DE (debt-to-equity) ratio rose to 1.6x in fiscal 2016, compared with 2.0x and 1.3x, respectively, in fiscal 2015.
The company has made the following projections for fiscal 2017:
- net sales growth: 6%–7%
- reported EPS: $3.20–$3.30
- charges associated with restructuring charges: $80 million–$100 million
- EPS before charges associated with restructuring activities: $3.38–$3.44
The company has made the following projections for fiscal 1Q17:
- net sales growth: 1%–2% and 2%–3% on a constant-currency basis
- reported EPS: $0.65–$0.71
- charges associated with restructuring charges: $35 million–$45 million
- EPS before charges associated with restructuring activities: $0.73–$0.77
In the next part, we’ll look at Nike (NKE).