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Estee Lauder Online Sales Hit 31%: Structural Shift in Beauty Retail?
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Key Takeaways
Online now drives nearly a third of total sales, up 3 percentage points from 2024.
Digital growth fueled by Amazon, Shopee, TikTok Shop, Tmall and Douyin expansion.
Travel retail slips to 15%, underscoring shift toward more stable digital channels.
The Estee Lauder Companies Inc. ((EL - Free Report) ) is seeing a meaningful digital acceleration. In fiscal 2025, online sales accounted for 31% of total sales, a record level and 3 percentage points higher than last year. This marks more than just incremental progress. It indicates a structural pivot in how consumers are engaging with prestige beauty.
Several factors underpinned this shift. The company expanded its presence across Amazon’s Premium Beauty stores, where 11 brands are now available in the United States and three in Canada. Southeast Asia also became a proving ground, with Estee Lauder leveraging Shopee and TikTok Shop, while its presence on Tmall and Douyin provided steady momentum. Importantly, the company is experimenting with new formats such as AI-powered flagship stores in China, showing a willingness to test innovative retail technology alongside channel expansion.
Online momentum accelerated in the back half of fiscal 2025, with organic sales growth improving from low single digits in the first half to mid-single digits in the second half. Management noted that the mix is expected to climb further, with digital being a core driver of growth. The company’s online strength also helps offset the structural decline in travel retail, which fell to just 15% of sales in fiscal 2025, down 4 percentage points from 2024 and sharply from pandemic-era highs.
As online sales rise to nearly a third of the business, Estee Lauder’s sales mix is undergoing a notable transformation. The shift underscores the company’s efforts to broaden consumer access through multiple digital platforms, while also reducing exposure to more volatile channels. Whether this balance sustains long-term will be an area to watch in the coming years.
Estee Lauder’s Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 13.3% in the past three months against the broader Consumer Staples sector’s 3.8% decline. EL has also outperformed the industry and the S&P 500 index’s growth of 9% and 11.3%, respectively, during the same period.
EL Stock's Past Three Months Performance
Image Source: Zacks Investment Research
Unlocking Estee Lauder’s Valuation
Estee Lauder currently trades at a forward 12-month P/E ratio of 39.38 compared with the industry average of 27.43 and the sector’s 16.48. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.
Estee Lauder Valuation Picture
Image Source: Zacks Investment Research
How the Zack Consensus Estimate Stacks Up for EL
The Zacks Consensus Estimate for earnings per share has seen downward revisions. Over the past 30 days, the consensus estimate has decreased 8 cents to $2.06 for the current fiscal year and 9 cents to $2.79 per share for the next fiscal year. Still, these estimates indicate year-over-year growth rates of 36.4% and 35.7%, respectively.
SBH delivered a trailing four-quarter average earnings surprise of 8.3%. The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year earnings indicates growth of 8.9%, from the year-ago actuals.
Celsius Holdings, Inc. ((CELH - Free Report) ) develops, processes, manufactures, markets, sells and distributes functional energy drinks. It flaunts a Zacks Rank #1 at present. CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings indicates growth of 77.7% and 54.3%, respectively, from the prior-year levels.
Laird Superfood, Inc. ((LSF - Free Report) ) manufactures and markets plant-based, natural and functional food in the United States. It currently carries a Zacks Rank # 2 (Buy). LSF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and earnings indicates growth of 21% and 23.8%, respectively, from the prior-year levels.
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Estee Lauder Online Sales Hit 31%: Structural Shift in Beauty Retail?
Key Takeaways
The Estee Lauder Companies Inc. ((EL - Free Report) ) is seeing a meaningful digital acceleration. In fiscal 2025, online sales accounted for 31% of total sales, a record level and 3 percentage points higher than last year. This marks more than just incremental progress. It indicates a structural pivot in how consumers are engaging with prestige beauty.
Several factors underpinned this shift. The company expanded its presence across Amazon’s Premium Beauty stores, where 11 brands are now available in the United States and three in Canada. Southeast Asia also became a proving ground, with Estee Lauder leveraging Shopee and TikTok Shop, while its presence on Tmall and Douyin provided steady momentum. Importantly, the company is experimenting with new formats such as AI-powered flagship stores in China, showing a willingness to test innovative retail technology alongside channel expansion.
Online momentum accelerated in the back half of fiscal 2025, with organic sales growth improving from low single digits in the first half to mid-single digits in the second half. Management noted that the mix is expected to climb further, with digital being a core driver of growth. The company’s online strength also helps offset the structural decline in travel retail, which fell to just 15% of sales in fiscal 2025, down 4 percentage points from 2024 and sharply from pandemic-era highs.
As online sales rise to nearly a third of the business, Estee Lauder’s sales mix is undergoing a notable transformation. The shift underscores the company’s efforts to broaden consumer access through multiple digital platforms, while also reducing exposure to more volatile channels. Whether this balance sustains long-term will be an area to watch in the coming years.
Estee Lauder’s Share Price Performance
Shares of this Zacks Rank #3 (Hold) company have gained 13.3% in the past three months against the broader Consumer Staples sector’s 3.8% decline. EL has also outperformed the industry and the S&P 500 index’s growth of 9% and 11.3%, respectively, during the same period.
EL Stock's Past Three Months Performance
Image Source: Zacks Investment Research
Unlocking Estee Lauder’s Valuation
Estee Lauder currently trades at a forward 12-month P/E ratio of 39.38 compared with the industry average of 27.43 and the sector’s 16.48. This valuation places the stock at a premium relative to peers, indicating broader market expectations around its business stability and ability to navigate current cost and demand dynamics.
Estee Lauder Valuation Picture
Image Source: Zacks Investment Research
How the Zack Consensus Estimate Stacks Up for EL
The Zacks Consensus Estimate for earnings per share has seen downward revisions. Over the past 30 days, the consensus estimate has decreased 8 cents to $2.06 for the current fiscal year and 9 cents to $2.79 per share for the next fiscal year. Still, these estimates indicate year-over-year growth rates of 36.4% and 35.7%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Sally Beauty Holdings, Inc. ((SBH - Free Report) ) operates as a specialty retailer and distributor of professional beauty supplies. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SBH delivered a trailing four-quarter average earnings surprise of 8.3%. The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year earnings indicates growth of 8.9%, from the year-ago actuals.
Celsius Holdings, Inc. ((CELH - Free Report) ) develops, processes, manufactures, markets, sells and distributes functional energy drinks. It flaunts a Zacks Rank #1 at present. CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average.
The Zacks Consensus Estimate for Celsius Holdings’ current fiscal-year sales and earnings indicates growth of 77.7% and 54.3%, respectively, from the prior-year levels.
Laird Superfood, Inc. ((LSF - Free Report) ) manufactures and markets plant-based, natural and functional food in the United States. It currently carries a Zacks Rank # 2 (Buy). LSF delivered a trailing four-quarter earnings surprise of 11.3%, on average.
The Zacks Consensus Estimate for Laird Superfood’s current fiscal-year sales and earnings indicates growth of 21% and 23.8%, respectively, from the prior-year levels.