Estee Lauder Inc. EL is geared to boost its fragrance portfolio by taking over high-end fragrance brands. This osmetics giant has made several strategic acquisitions to enhance its portfolio.
Last week, the cosmetics giant bought By Kilian The Paris-based prestige fragrance brand is sold in more than 40 countries, primarily North America, Europe and the Middle East, through immersive freestanding stores, select prestige department stores and perfumeries. The brand also offers products like candles and other accessories.
By Kilian is known to offer an exclusive “wardrobe” of scents which reflect its founder Kilian Hennessy’s legacy of luxury and creativity.
By Kilian is the third brand to be acquired by Estee Lauder in the high-end fragrance market. In Oct 2014, the company had taken over Le Labo followed by sensory lifestyle brand, and the storied fragrance brand, Editions de Parfurms Frederic Malle, in Jan 2015.
Prestige fragrance market is expected to grow modestly and become more popular in 2016, as customers look for individuality instead of mass appeal products. Over the last few years, niche fragrances have been experiencing double-digit growth and have been the best performing category within the global prestige fragrance market. Estee Lauder appears to have adopted the right strategy to tap into the prospects of this segment.
The company’s earnings and revenues beat the respective Zacks Consensus Estimate in second-quarter fiscal 2016 helped by new products and strong sales of luxury fragrances. However, it lowered the fiscal guidance anticipating stronger currency headwinds in the rest of the year.
Estee Lauder carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the cosmetics and toiletries sector are Coty Inc. COTY, Helen of Troy HELE and Francesca’s Holdings FRAN, each 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 >>
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
Be the first to comment