The Estee Lauder Companies Inc. ( EL Quick Quote EL - Free Report) is keen on accelerating its Travel Retail business, amid easing travel restrictions worldwide. Keeping along these lines, the company unveiled the opening of a 300,000 square feet state-of-the-art distribution center in Galgenen, Switzerland, dedicated to its global Travel Retail business. Management highlighted that Travel Retail, which accommodates the overall duty-free environment, is one of its highest growth channels. The channel touches more than 3 billion customers annually. The facility widens The Estee Lauder Companies’ distribution footprint across Switzerland and supports the delivery of prestige beauty products and high-touch services to traveling consumers globally. The move will enhance the company’s capacity and promote operational efficiencies, speed-to-market and resiliency via innovative, advanced automated equipment and technologies. We note that Travel Retail contributed 28% to the company’s fiscal 2021 sales. The Estee Lauder Companies’ impressive Travel Retail business keeps it well-positioned to reap benefits in the high growth environment. The opening of the distribution center is a step to bolster the company’s Travel Retail business and help in drivingthe company’ssustainability goals. Image Source: Zacks Investment Research What Else Should You Know?
The Zacks Rank #3 (Hold) company has a strong online business and expects it to be a major growth engine. The company has been implementing new technology and digital experiences, including online booking for each store appointment, omni-channel loyalty programs and high-touch mobile services. These initiatives and the company’s digital-first mindset have been aiding its online sales. EL has been expanding its omnichannel capabilities to provide flexible and convenient shopping options to consumers.
The Estee Lauder Companies’ Skin Care portfolio has been performing well. During the third quarter of fiscal 2022, the Skin Care category’s sales were up 6% year over year (up 7% at constant currency or cc) to $2,395 million. In May 2021, The Estee Lauder Companies took a step to expand its Skin Care business when it concluded the first phase of raising its ownership stake in DECIEM Beauty Group Inc. (DECIEM). Consequently, The Estee Lauder Companies now has nearly 76% ownership in DECIEM compared with 29% earlier. The addition of DECIEM complimented the company’s reported sales growth in the fiscal third quarter. EL’s stock has lost 2.3% in the past three months, outperforming the industry’s 5.9% decline. 3 Solid Staple Stocks
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Pilgrim’s Pride ( PPC Quick Quote PPC - Free Report) , Medifast ( MED Quick Quote MED - Free Report) and Sysco Corporation ( SYY Quick Quote SYY - Free Report) . Pilgrim’s Pride, which produces, processes, markets and distributes fresh, frozen and value-added chicken and pork products, sports a Zacks Rank #1 (Strong Buy). PPC has a trailing four-quarter earnings surprise of 31.4%, on average. You can see . the complete list of today’s Zacks #1 Rank stocks here The Zacks Consensus Estimate for Pilgrim’s Pride’s current financial year earnings per share (EPS) suggests growth of almost 43% from the year-ago reported number. Medifast, which manufactures and distributes weight loss, weight management, healthy living products and other consumable health and nutritional products, currently carries a Zacks Rank #1. MED has a trailing four-quarter earnings surprise of 12.9%, on average. The Zacks Consensus Estimate for Medifast’s current financial year sales and EPS suggests growth of almost 19% and 13.4%, respectively, from the year-ago reported figure. Sysco, which engages in the marketing and distributing of various food and related products, carries a Zacks Rank #2 (Buy). SYY has a trailing four-quarter earnings surprise of 9.1%, on average. The Zacks Consensus Estimate for Sysco’s current financial year sales and EPS suggests growth of 32.6% and 124.3%, respectively, from the year-ago reported number.