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Estee Lauder Launches Paris Fragrance Atelier to Drive Innovation

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Key Takeaways

  • Estee Lauder launches a Global Fragrance Atelier in Paris to drive innovation in luxury perfumery.
  • The facility uses AI and neuroscience to speed up fragrance design and deepen emotional consumer ties.
  • The Atelier supports brands like Jo Malone London, TOM FORD and Le Labo under Estee Lauder's portfolio.

The Estee Lauder Companies Inc. ((EL - Free Report) ) has opened a Global Fragrance Atelier in Paris, aiming to advance luxury perfumery through a fusion of creativity and science. Situated within La Maison des Parfums on Rue Volney, the Atelier will serve as a central hub where perfumers and brand teams collaborate to design next-generation fragrances.

The facility is designed to accelerate fragrance development by leveraging advanced technologies such as AI, neuroscience-based modeling and data-driven insights. These tools are expected to shorten product development timelines while enabling creators to experiment with novel scent compositions and explore emotional connections with consumers.

EL Supporting a Portfolio of Global Brands

The Atelier will act as a shared innovation platform for the company’s fragrance brands, including Jo Malone London, TOM FORD, Le Labo, KILIAN PARIS and Editions de Parfums Frédéric Malle, as well as its own lines such as Estée Lauder and Clinique. Each brand retains its creative identity while benefiting from access to cutting-edge tools, proprietary ingredients and scientific expertise.

The Paris Atelier underscores Estee Lauder’s long-standing commitment to France, where it has operated for nearly six decades and employs more than 1,200 people. The establishment of La Maison des Parfums and the Fragrance Atelier further reinforces its connections with France’s celebrated perfumers, suppliers and creative talent, highlighting the country’s central role in the company’s fragrance innovation.

With La Maison des Parfums, Estee Lauder is combining traditional French craftsmanship with modern innovation, creating a dynamic space for the future of luxury fragrance design.

Estee Lauder Growth Drivers & Strategic Focus

Estee Lauder is strengthening its business through the PRGP, a strategic initiative focused on expanding margins, driving targeted growth investments and simplifying operations. By improving efficiency and reallocating resources to innovation and brand support, the company is positioning itself to enhance profitability while maintaining flexibility to respond to changing market dynamics. The PRGP remains central to Estee Lauder’s plan to restore a strong, sustainable operating model.

The company’s strategic vision, Beauty Reimagined, is transforming it into a more agile, consumer-focused business. The strategy emphasizes expanding consumer reach, accelerating innovation and increasing investment in brand experiences. Brands now lead strategy and innovation while regions oversee performance, enabling faster decision-making and stronger market responsiveness. Together, these initiatives aim to drive long-term sustainable growth and reinforce the company’s leadership in prestige beauty.

Performance of Estee Lauder and Its Industry

Over the past month, EL’s shares have gained 7.3% compared with the industry and the S&P 500’s growth of 4.6% and 0.4%, respectively.

Zacks Investment Research
Image Source: Zacks Investment Research

While EL stock has delivered a strong performance, its valuation remains a key factor for consideration. The stock is currently trading at a premium compared with the industry average of 29.34, with a forward 12-month price-to-earnings ratio of 41.95.

Zacks Investment Research
Image Source: Zacks Investment Research

For long-term investors, holding onto this Zacks Rank #3 (Hold) stock might still be a viable option. However, prospective investors may want to wait for a more favorable entry point given the stock's current higher valuation.

Stocks to Consider

Sally Beauty Holdings, Inc. ((SBH - Free Report) ) operates as a specialty retailer and distributor of professional beauty supplies. It currently has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Sally Beauty’s current fiscal-year earnings indicates growth of 8.9%, from the year-ago actuals. Sally Beauty delivered a trailing four-quarter average earnings surprise of 8.3%.

Ulta Beauty, Inc. ((ULTA - Free Report) ) operates as a specialty beauty retailer in the United States. It currently holds a Zacks Rank #2. Ulta Beauty delivered a trailing four-quarter earnings surprise of 16.3%, on average.

The Zacks Consensus Estimate for Ulta Beauty’s current fiscal-year sales indicates growth of 6.8% from the year-ago reported number.

Ollie's Bargain Outlet Holdings, Inc. ((OLLI - Free Report) ), a leading off-price retailer of brand-name household products, currently carries a Zacks Rank #2. OLLI has a trailing four-quarter earnings surprise of 4.2%, on average.

The Zacks Consensus Estimate for Ollie's Bargain's current fiscal-year sales and earnings calls for growth of 16.4% and 16.5%, respectively, from the year-ago reported numbers.

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