Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Chinese lockdowns are taking their toll on Q2 sales. We expect the upcoming report to be much worse than the last </li>
<li>Estee Lauder's recent results suggest that travel retail will be a negative shock too </li>
<li>We believe there is one large downgrade to full-year guidance and consensus numbers. Too early turn bullish </li>
</ul>


Chinese lockdowns are taking their toll on Q2 sales. We expect the upcoming report to be much worse than the last 
Estee Lauder's recent results suggest that travel retail will be a negative shock too 
We believe there is one large downgrade to full-year guidance and consensus numbers. Too early turn bullish 


Shiseido (4911 JP) | Q2 Results Will Make Analysts Blush

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Capital Markets

Estee Lauder Companies Cl A / Equity Capital Markets

<ul><li>Despite the increase of the temporary Covid-19 restriction in China, Estee Lauder managed to delivere an organic sales growth of 9% in the third quarter of the fiscal year 2022.</li><li>As volatility increased, the company maintained cost discipline and expanded its operating margin, resulting in higher-than-expected adjusted diluted earnings-per-share growth of 17%.</li><li>Eleven brands grew organically by double digits in the quarter which was a positive sign for Estee Lauder.</li></ul>

Despite the increase of the temporary Covid-19 restriction in China, Estee Lauder managed to delivere an organic sales growth of 9% in the third quarter of the fiscal year 2022.As volatility increased, the company maintained cost discipline and expanded its operating margin, resulting in higher-than-expected adjusted diluted earnings-per-share growth of 17%.Eleven brands grew organically by double digits in the quarter which was a positive sign for Estee Lauder.

Estee Lauder Companies Inc.: Competitive Positioning & Growth Drivers

Credit

<ul><li>Estee Lauder's business might have a relatively weak perception today as it has suffered from the pandemic and also faces the impact of the macro-economic headwinds, increasing interest rates, and the rising geopolitical tensions affecting broader markets.</li><li>The company’s previous result was not too bad with organic sales growth having driven a 20% increase in reported sales.</li><li>Based on our credit analysis, the company merits a Credit Evaluation Score of A with a stable outlook and as per our Financial Strength Indicator, its performance is 4.19/ 5.</li></ul>

Estee Lauder's business might have a relatively weak perception today as it has suffered from the pandemic and also faces the impact of the macro-economic headwinds, increasing interest rates, and the rising geopolitical tensions affecting broader markets.The company’s previous result was not too bad with organic sales growth having driven a 20% increase in reported sales.Based on our credit analysis, the company merits a Credit Evaluation Score of A with a stable outlook and as per our Financial Strength Indicator, its performance is 4.19/ 5.

Estee Lauder: Detailed Credit Analysis & Financial Strength Evaluation Report

<ul><li>Estee Lauder’s stock price has gone through a strong correction over the past few weeks on account of the macro-economic headwinds, increasing interest rates, and the rising geopolitical tensions affecting broader markets.</li><li>The company’s last quarterly result was not too bad with organic sales growth having driven a 20% increase in reported sales.</li><li>Eleven of the company’s brands saw double-digit organic sales growth in the last quarter with key brands such as Clinique, Estee Lauder, La Mer, and M.A.C., continuing to gain traction.</li></ul>

Estee Lauder’s stock price has gone through a strong correction over the past few weeks on account of the macro-economic headwinds, increasing interest rates, and the rising geopolitical tensions affecting broader markets.The company’s last quarterly result was not too bad with organic sales growth having driven a 20% increase in reported sales.Eleven of the company’s brands saw double-digit organic sales growth in the last quarter with key brands such as Clinique, Estee Lauder, La Mer, and M.A.C., continuing to gain traction.

Estee Lauder: Financial & Price Forecasts

Equity Long-Short Analyst

Pyari Menon

Thematic (Sector/Industry)

<ul>
<li>Procter &amp; Gamble Co (PG US), Amorepacific Corp (090430 KS), L'Oreal SA (OR FP), <a href="https://www.smartkarma.com/entities/lg-household-health-care" target="_blank" data-smartkarma-citation="entities:6501:1" rel="noopener">LG Household &amp; Health Care (051900 KS)</a>,  and Kao Corp (4452 JP), lead product innovation table</li>
<li>Among the smaller names <a href="https://www.smartkarma.com/entities/cosmax-inc" target="_blank" data-smartkarma-citation="entities:4491:1" rel="noopener">Cosmax Inc (192820 KS)</a>, Pola Orbis Holdings (4927 JP),  <a href="https://www.smartkarma.com/entities/kolmar-bnh-co-ltd" target="_blank" data-smartkarma-citation="entities:33240:1" rel="noopener">Kolmar BNH (200130 KS)</a>, have been relatively prolific in innovating over the last three years.</li>
<li>Apart from the quality of the ingredients, consistency, stability of the formulations, the packaging, dispensing, virtual try-on, personalized recommendations, sustainability seem to be some of the key trends in innovations.</li>
</ul>


Procter &amp; Gamble Co (PG US), Amorepacific Corp (090430 KS), L'Oreal SA (OR FP), LG Household &amp; Health Care (051900 KS),  and Kao Corp (4452 JP), lead product innovation table
Among the smaller names Cosmax Inc (192820 KS), Pola Orbis Holdings (4927 JP),  Kolmar BNH (200130 KS), have been relatively prolific in innovating over the last three years.
Apart from the quality of the ingredients, consistency, stability of the formulations, the packaging, dispensing, virtual try-on, personalized recommendations, sustainability seem to be some of the key trends in innovations.


Insights from Datamining Technical Publications - Cosmetics

United States

The Estee Lauder Companies Inc. manufactures and markets a wide range of skin care, makeup, fragrance, and hair care products.  The Company's products are sold in countries and territories around the world.

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Estee Lauder Companies Cl A (EL US)

Shiseido (4911 JP) | Q2 Results Will Make Analysts Blush

We believe that Shiseido faces significant headwinds in the current quarter. We expect a large downward revision to company guidance and street...

Mark Chadwick

Estee Lauder Companies Inc.: Competitive Positioning & Growth Drivers

Despite the increase of the temporary Covid-19 restriction in China, Estee Lauder managed to delivere an organic sales growth of 9% in the third...

Baptista Research

Estee Lauder: Detailed Credit Analysis & Financial Strength Evaluation Report

Estee Lauder's business might have a relatively weak perception today as it has suffered from the pandemic and also faces the impact of the...

Baptista Research

Estee Lauder: Financial & Price Forecasts

Estee Lauder’s stock price has gone through a strong correction over the past few weeks on account of the macro-economic headwinds, increasing...

Baptista Research

Insights from Datamining Technical Publications - Cosmetics

The beauty industry - where innovation can be real and driven by science, but sometimes just cosmetic to just change the perception

Pyari Menon

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