The Estée Lauder Companies, Inc. [NYSE: EL] was a big gainer in Monday’s session. The stock closed the day with gains of 12.52%. This followed strong results that saw it beat analyst expectations for fiscal 2020, and also report a strong close to its 2019 financial year. The company announced revenue growth of 9% In Q4. The figure is much higher, at 12%, when adjusted to the new accounting standards. The company also delivered an EPS of $0.64, against analyst expectation of $0.53. A huge chunk of its stellar performance came from its skincare products. Sales for its main skincare brands, Tom Ford and MAC, grew by 18%. Overall, the skin case segment pulled in $6.6 billion in revenues, outpacing the company’s makeup business, which was the biggest gainer in the last financial year.
Estee Lauder attributes its revenue growth to the Asian market. The company’s sales in the Asia-Pacific rose by 25%, and were mainly driven by China. Other regions of the world especially Europe, Africa, and the Middle East also recorded strong growth. Collectively, they grew by 18%. The only key market where this company experienced slower growth was in the Americas where revenues dropped by 5%. The company attributed this to the overall challenges facing brick-and-mortar stores in the Americas. Sales were also driven by the company’s more aggressive investments in strategic aspects of the business. According to the CEO, the company has invested in data analytics to help power digital marketing among other innovations.
From a look at the price action, the company is in a bullish channel. All through Monday’s session, it was forming higher lows, a good indicator of increased bullish sentiment. This price action saw it trade between the $191.31 and $202.84 range. Volumes stood at 5,284,422 in the day, while the company’s market capitalization stood at $72.972 billion at the end of the day.
About The Estée Lauder Companies Inc
This is a manufacturing company that is focused on the manufacture of skin care, hair care, make-up and fragrance products. It has its headquarters on 767 5th Avenue, New York, NY 10153 U.S. It sells its products under the brand names Estee Lauder, Clinique, Aramis, Origins, M.A.C, Flirt, among other globally recognized brand names.