With a market cap of $23.9 billion, The Estée Lauder Companies Inc. (EL) is a manufacturer, marketer, and seller of skincare, makeup, fragrance, and hair care products. Headquartered in New York, the company offers its products under the Estée Lauder, Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, TOM FORD, Too Faced, Dr.Jart+, and The Ordinary brands.
Companies valued at $10 billion or more are generally described as “large-cap” stocks and Estée Lauder fits this criterion perfectly. The multinational corporation is one of the world’s leading manufacturers, marketers, and sellers and is a steward of luxury and prestige brands globally. Its products are sold in approximately 150 countries and territories.
The beauty products company crumbled 57.3% from its 52-week high of $155.73. Shares of Estée Lauder have slipped 16.9% over the last three months, marking a steeper decline than the Consumer Staples Select Sector SPDR Fund’s (XLP) 3.1% drop.
In the long term, shares of EL have slumped 56.5% over the past 52 weeks, lagging behind XLP’s 5.3% return over the same time frame. In addition, Estée Lauder is down 11.3% on a YTD basis, trailing XLP’s 1.1% gain.
EL has been trading below its 50-day and 200-day moving averages since last year.
Despite beating Wall Street expectations with Q2 2025 revenue of $4 billion and adjusted earnings of $0.62 per share, Estée Lauder shares dipped 16.1% on Feb. 4. The company reported a steep GAAP loss of $1.64 per share due to $258 million in impairments and weak performance in key markets like China and travel retail, where skincare sales plunged 12%. Additionally, management warned of a worsening outlook, projecting a 10% to 12% decline in Q3 sales and a massive 69% year-over-year drop in EPS to between $0.24 and $0.34, far below analyst expectations.
The announcement of an expanded restructuring plan with $1.2 billion to $1.6 billion in pre-tax charges and layoffs of up to 7,000 employees further spooked investors.
In contrast, rival e.l.f. Beauty, Inc. (ELF) fell behind EL. ELF shares have decreased 65.9% in the last 52 weeks and also moved down 45.7% on a YTD basis.
Due to EL’s weak price action, analysts are cautious about its prospects. The stock has a consensus rating of “Hold” from the 28 analysts covering the stock, and as of writing, Estée Lauder is trading below the mean price target of $76.68.
