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Here's How Much a $1000 Investment in Estee Lauder Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Estee Lauder (EL - Free Report) ten years ago? It may not have been easy to hold on to EL for all that time, but if you did, how much would your investment be worth today?
Estee Lauder's Business In-Depth
With that in mind, let's take a look at Estee Lauder's main business drivers.
New York-based The Estee Lauder Companies Inc. is one of the world's leading manufacturers and marketers of skin care, makeup, fragrance and hair care products. The company’s products are sold through department stores, mass retailers, company-owned retail stores, hair salons and travel-related establishments.
The Estee Lauder Companies' manufacturing and research facilities are spread across the U.S., Canada, Belgium, Switzerland, Japan, South Africa and the U.K.
The company reports operating results in terms of product categories and geographic regions.
In terms of product categories, The Estee Lauder Companies' primary segments include:
Skin Care division (55.7% of fiscal 2022 sales): This segment sells skin care products for men and women. The products consist of moisturizers, creams, lotions, cleansers, sunscreens and self-tanning products.
Makeup division (26.3% of fiscal 2022 sales): This segment manufactures, markets and sells makeup products. Products include lipsticks, mascaras, foundations, eye shadows, nail polishes, powders and related items, such as compacts, brushes and other makeup tools.
Fragrances division (14.1% of fiscal 2022 sales): This segment sells fragrance products for men and women. Its products include eau de perfume, sprays and colognes, as well as lotions, powders, creams and soaps that are based on a particular fragrance.
Hair care division (3.6% of fiscal 2022 sales): This segment includes hair color and styling products, shampoos, conditioners, and finishing sprays.
Other division: This segment sells ancillary products and services.
Region-wise, the company reports under Americas (26.1% of fiscal 2022 sales); Europe, the Middle East & Africa (43.3% of fiscal 2022 sales); andAsia-Pacific (30.6% of fiscal 2022 sales).
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Estee Lauder a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2013 would be worth $3,685.52, or a gain of 268.55%, as of April 14, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 160.96% and the price of gold increased 25.60% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for EL.
Shares of The Estee Lauder Companies have outperformed the industry in the past year. The company has been benefiting from its strong online business. In the second quarter of fiscal 2023, online organic sales rose in single digits, led by several brands like La Mer. The company’s strong presence in emerging markets is a driver. In the fiscal second quarter, it saw strong double-digit organic sales growth in emerging markets like India, Brazil, Turkey and Malaysia. However, COVID-19 continued affecting the operating environment throughout the first half of fiscal 2023, which included curbs in China that weighed on travel retail in Hainan and retail traffic in mainland China. Results were affected by inflation, concerns surrounding the recession and unfavorable currency rates. Incidentally, management lowered its fiscal 2023 guidance.
Over the past four weeks, shares have rallied 6.02%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Estee Lauder Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Estee Lauder (EL - Free Report) ten years ago? It may not have been easy to hold on to EL for all that time, but if you did, how much would your investment be worth today?
Estee Lauder's Business In-Depth
With that in mind, let's take a look at Estee Lauder's main business drivers.
New York-based The Estee Lauder Companies Inc. is one of the world's leading manufacturers and marketers of skin care, makeup, fragrance and hair care products. The company’s products are sold through department stores, mass retailers, company-owned retail stores, hair salons and travel-related establishments.
The Estee Lauder Companies' manufacturing and research facilities are spread across the U.S., Canada, Belgium, Switzerland, Japan, South Africa and the U.K.
The company reports operating results in terms of product categories and geographic regions.
In terms of product categories, The Estee Lauder Companies' primary segments include:
Skin Care division (55.7% of fiscal 2022 sales): This segment sells skin care products for men and women. The products consist of moisturizers, creams, lotions, cleansers, sunscreens and self-tanning products.
Makeup division (26.3% of fiscal 2022 sales): This segment manufactures, markets and sells makeup products. Products include lipsticks, mascaras, foundations, eye shadows, nail polishes, powders and related items, such as compacts, brushes and other makeup tools.
Fragrances division (14.1% of fiscal 2022 sales): This segment sells fragrance products for men and women. Its products include eau de perfume, sprays and colognes, as well as lotions, powders, creams and soaps that are based on a particular fragrance.
Hair care division (3.6% of fiscal 2022 sales): This segment includes hair color and styling products, shampoos, conditioners, and finishing sprays.
Other division: This segment sells ancillary products and services.
Region-wise, the company reports under Americas (26.1% of fiscal 2022 sales); Europe, the Middle East & Africa (43.3% of fiscal 2022 sales); and Asia-Pacific (30.6% of fiscal 2022 sales).
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Estee Lauder a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in April 2013 would be worth $3,685.52, or a gain of 268.55%, as of April 14, 2023, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 160.96% and the price of gold increased 25.60% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for EL.
Shares of The Estee Lauder Companies have outperformed the industry in the past year. The company has been benefiting from its strong online business. In the second quarter of fiscal 2023, online organic sales rose in single digits, led by several brands like La Mer. The company’s strong presence in emerging markets is a driver. In the fiscal second quarter, it saw strong double-digit organic sales growth in emerging markets like India, Brazil, Turkey and Malaysia. However, COVID-19 continued affecting the operating environment throughout the first half of fiscal 2023, which included curbs in China that weighed on travel retail in Hainan and retail traffic in mainland China. Results were affected by inflation, concerns surrounding the recession and unfavorable currency rates. Incidentally, management lowered its fiscal 2023 guidance.
Over the past four weeks, shares have rallied 6.02%, and there have been 1 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.