Decoding Estee Lauder's Strategic Move Into Amazon Premium Beauty

The Estee Lauder Companies Inc.'s EL flagship brand, Estee Lauder, has officially debuted its brand in the U.S. Amazon Premium Beauty store, making its high-performance skincare, makeup and iconic fragrances more accessible to a broader audience. Amazon AMZN customers can now shop for Estee Lauder's offerings at amazon.com/esteelauder.

This launch not only brings the brand’s products to Amazon shoppers but also introduces an exclusive Virtual Foundation Tool at amazon.com/findyourdoublewear that helps customers find their perfect foundation shade from the comfort of their homes. Amazon Prime members will also receive quick and free shipping on all purchases when shopping for Estee Lauder products in the Amazon Premium Beauty store.

Best-Selling Estee Lauder Products Available on Amazon

The debut of Estee Lauder on the Amazon Premium Beauty store is a significant milestone for the brand, bringing its high-performance products and advanced skincare solutions to Amazon customers in the United States. The company is excited to share its expertise in night science, skin tone authority and signature fragrances with Amazon's engaged beauty community, offering an elevated shopping experience to explore its top products.

On the new storefront, Amazon shoppers can discover a wide array of best-selling and trending Estee Lauder items, including the popular Double Wear Stay-in-Place Makeup, the leading foundation in the United States, launched alongside the Virtual Foundation Tool. Customers can also find popular products like the Advanced Night Repair Serum, Pure Color Lipstick and Beautiful Magnolia Eau de Parfum, among others. This season, Estee Lauder is featuring makeup and fragrance gift sets, including the Fragrance Treasures Gift Set, as part of Amazon's 2024 Holiday Beauty Haul, running through Nov. 3.

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To enhance its brand visibility and product discovery in Amazon Premium Beauty, Estee Lauder is launching an extension of its successful female-focused sports marketing campaign, "Game Day, Your Way," on Prime Video. In addition, the company is streamlining the consumer journey by utilizing Prime Video to connect with Amazon shoppers through its new storefront. All said, the launch of Estee Lauder on Amazon signifies a new era in beauty shopping, offering easy access to top-tier skincare and makeup for a wider audience.

What Else Should You Know About EL?

This Zacks Rank #3 (Hold) company is focused on rebuilding profitability through its Profit Recovery and Growth Plan, which emphasizes accelerating sales growth and recovering profit margins. The plan targets significant benefits for fiscal 2025, with 80% of net gains aimed at enhancing gross profit via reduced discounts and optimized pricing. The company is progressing well with its strategic priorities, which focus on enhancing its prestige skincare portfolio through precision marketing, expanding fragrance offerings and leveraging AI-driven consumer insights to improve marketing effectiveness and target new audiences.

However, issues like market volatility in mainland China and Asia travel retail, weak consumer sentiment, a shift toward more experiential spending and reduced conversion rates are persistent obstacles. Management is also closely monitoring risks like retailer destocking. EL’s stock has dropped 12.2% in the past three months compared with the industry’s decline of 15.3%.

Better-Ranked Staple Bets

Inter Parfums IPAR is engaged in the manufacturing, distribution and marketing of a wide range of fragrances and related products. It currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

The Zacks Consensus Estimate for IPAR’s current financial-year sales and earnings indicates advancements of 10.2% and 8.4%, respectively, from the prior-year figures. It has a trailing four-quarter earnings surprise of 2.5%, on average.

Urban Outfitters Inc. URBN is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift products. It currently has a Zacks Rank #2.

The Zacks Consensus Estimate for Urban Outfitters’ current financial year sales and earnings indicates advancements of 5.7% and 11.7%, respectively, from the prior-year figures. URBN has a trailing four-quarter average earnings surprise of 17.6%.

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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report

The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report

Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report

Interparfums, Inc. (IPAR) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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