COVID-19 Impact on Estee Lauder, H2 2020 Update

Summary

COVID-19 Impact on Estee Lauder, H2 2020 Update reports key findings as of 4th September, 2020 based on market analysis and brand diversification by industry and geography.

Overall, the C&T industry is facing a severe impact from the COVID-19 pandemic. Due to its lack of business diversity (coupled with relatively limited geographic diversification), Estée Lauder is in a difficult position. However, the recent announcement of its restructuring plan signifies its intentions to prepare itself to fight the current crisis and be ready for the post-COVID era. The recent shift towards digitalization and strengthening its online sales may prove beneficial for the company in the coming years.

Scope

• Estée Lauder's expansion in the personal hygiene and skincare category is expected to offer modest resilience against the adverse impact of COVID-19.
• The C&T industry is forecast to bear significant sales decline, with Latin America and North America the worst hit regions.
• Estée Lauder's single industry operations will make it difficult to overcome the losses generated due to COVID-19 crisis.
• With the declining sales of make-up, Estée Lauder's focus on skincare and personal hygiene may help during the pandemic.
• Estée Lauder's make-up sector accounts for 50% of total expected losses in 2020.

Reasons to Buy

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