Estee Lauder (EL) Continues to Boost its Skin Care Portfolio - Analyst Blog

A generic image of multiple stacks of coins next to a pen.
Credit: Shutterstock photo

Cosmetics giant Estée Lauder Companies Inc. ( EL ) is geared to boost its presence in the premium makeup category through strategic acquisitions.

Within a week of closing the acquisition of high-end fragrance brand Editions de Parfums Frédéric Malle on Jan 11, Estée Lauder completed the acquisition of skin care brand GLAMGLOW to boost its prestige skin care portfolio. However, terms of the deal remain under wraps. The company had entered into an agreement for the takeover in Dec 22, 2014. (Read: Estee Lauder to Buy GLAMGLOW, Boost Skin Care Portfolio)

Founded in 2010, GLAMGLOW is a Hollywood-inspired prestige skin care brand which offers fast-acting treatment masks. Although the brand primarily dominates the Hollywood sets, it is now available in global specialty-multi channels and select high-end department stores.

The acquisition will help the company enrich its portfolio with the popular five easy-to-use mud-based facial skin mask products of GLAMGLOW, namely, the original GLAMGLOW product, Youthmud, Supermud, Thirstymud and Powermud.

GLAMGLOW will be managed byThe Estée Lauder Companies' Group President, John Demsey, who also overlooks the operations of brands like Estée Lauder, M·A·C, Tom Ford, Prescriptives, Bobbi Brown, Jo Malone, La Mer, Bumble and bumble, Smashbox and Aramis & Designer Fragrances, Le Labo and RODIN olio lusso.

Estée Lauder is one of the world's leading manufacturers and marketers of quality skin care, makeup, fragrance and hair care products that are sold in over 150 countries. The company has been consistently driving decent earnings backed by product innovation and strategic initiatives.

Stocks to Consider

Estée Lauder currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the cosmetics industry is Helen of Troy ( HELE ) sporting a Zacks Rank #1 (Strong Buy). Other stocks in the broader retail sector worth considering are Columbia Sports Inc. ( COLM ) and Crocs Inc. ( CROX ) both carrying a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ESTEE LAUDER (EL): Free Stock Analysis Report

COLUMBIA SPORTS (COLM): Free Stock Analysis Report

CROCS INC (CROX): Free Stock Analysis Report

HELEN OF TROY (HELE): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

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

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

In This Story


Other Topics