Estée Lauder (EL)’s China Bet Just Paid Off. Its Makeup Business Still Hasn’t Caught Up

finance.yahoo.com · 2026-08-28

The Estée Lauder Companies Inc. (NYSE:EL) forecast fiscal 2027 adjusted earnings per share of $3.10 to $3.35, above analyst estimates, after fourth-quarter net sales rose 6.3% to $3.63 billion on strong demand for its luxury fragrance and skincare brands. It sent shares up 11% in premarket trading on August 19, 2026. Why This Matters Estée […]

TickrTrends take: Estée Lauder's recent success in China addresses a significant geographic growth driver that valuation models have tracked closely, particularly given the importance of Asian markets to the luxury beauty sector. The company's lagging makeup division represents an operational challenge that could affect margin expansion and earnings power going forward, making execution in this category important for validating any undervaluation thesis. Investors following the valuation context should monitor whether makeup segment improvements can materialize alongside the China momentum, as both factors would be necessary to justify moving from the current undervalued assessment.

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