Estee Lauder Sues Walmart Over Counterfeit Products
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy WMT?
Source: CNBC
- Lawsuit Background: Estee Lauder has filed a lawsuit against Walmart in California federal court, alleging that the retailer sold counterfeit beauty products on its website and failed to ensure that consumers could only purchase authorized and authentic merchandise, potentially damaging its brand image.
- List of Counterfeit Products: The lawsuit cites counterfeit items including Estee Lauder's Advanced Night Repair serum and Clinique eye cream, highlighting vulnerabilities in Walmart's management of third-party sellers, which could undermine consumer trust.
- Market Strategy Risks: Walmart's online marketplace strategy aims to accelerate profit growth, but the presence of counterfeit products may expose the company to legal liabilities and harm its brand reputation, particularly in the context of competition with Amazon.
- Legislative Challenges: Despite the existence of the Shop Safe Act aimed at curbing counterfeit goods on online marketplaces, the bill has failed to pass multiple times due to lobbying by Walmart and other platforms, reflecting the difficulties brands face in holding platforms accountable.
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Analyst Views on WMT
Wall Street analysts forecast WMT stock price to fall
26 Analyst Rating
25 Buy
1 Hold
0 Sell
Strong Buy
Current: 133.640
Low
119.00
Averages
125.75
High
136.00
Current: 133.640
Low
119.00
Averages
125.75
High
136.00
About WMT
Walmart Inc. is a technology-powered omnichannel retailer. The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce Websites and mobile applications, located throughout the United States (U.S.), Africa, Canada, Central America, Chile, China, India and Mexico. It operates in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omni-channel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S. through its subsidiaries, as well as eCommerce and omni-channel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omni-channel initiatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Analyst Optimism: Analysts at Oppenheimer expect Walmart's fourth-quarter holiday sales to come in at the high end of the projected growth range of 3.75% to 4.75%, reflecting market confidence in its sales performance, which could further boost the stock price.
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- Analyst Upgrades: Several analysts have raised Walmart's price targets, with Oppenheimer expecting fourth-quarter holiday sales to come in at the high end of Walmart's projected growth range, further boosting the stock price.
- Market Share Expansion: Walmart has successfully attracted higher-income shoppers by enhancing online and in-store pickup services, modernizing stores, and broadening brand selections, thereby increasing its competitive edge and encroaching on rival Target's market share.
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- Strong Stock Performance: Walmart's stock has surged approximately 20% year-to-date, reaching an adjusted all-time high, and has gained nearly 29% over the past 12 months, indicating robust market performance that attracts investor interest.
- Analyst Optimism: Analysts at Oppenheimer expect Walmart's fourth-quarter holiday sales to come in at the high end of the projected growth range of 3.75% to 4.75%, reflecting market confidence in its sales performance, which could further boost the stock price.
- Market Share Expansion: Walmart has successfully attracted higher-income consumers through modernized stores and online pickup services, enhancing its position in the competitive retail market and encroaching on rival Target's market share.
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See More
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- Stock Surge: Walmart's stock has surged approximately 20% this year, reaching an all-time high and surpassing a $1 trillion market cap, making it the 12th company to achieve this milestone, indicating strong performance in the retail sector.
- Analyst Upgrades: Several analysts have raised Walmart's price targets, with Oppenheimer expecting fourth-quarter holiday sales to hit the high end of the projected growth range of 3.75% to 4.75%, reflecting market optimism about its sales outlook.
- Customer Base Expansion: Walmart has successfully attracted higher-income shoppers while maintaining its traditional budget-conscious clientele, enhancing its market competitiveness through modernized stores and online pickup services, thereby encroaching on rival Target's market share.
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- Sector Performance: In 2026, the consumer staples sector has surged over 15.5% in the S&P 500, becoming the third-best performing sector, indicating a growing investor preference for defensive stocks amid a market rotation.
- Valuation Surge: Wolfe Research noted that market-weighted valuations for consumer staples have reached their highest levels since the 1990s, reflecting increased investor confidence in the sector despite a lackluster overall market performance.
- Walmart's Market Position: Walmart's stock jumped 20% in 2026, allowing it to join the $1 trillion market cap club, showcasing its adaptability in the AI economy and solidifying its leading position in retail.
- Future Outlook: Analysts predict that as consumer demand rebounds in 2026, the fundamentals for the consumer staples sector are likely to improve, particularly with potential tax relief for lower-income households boosting product demand.
See More
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- Acquisition Impact: Palo Alto Networks (PANW) is expected to report 14%-16% year-over-year growth following its $25 billion acquisition of CyberArk, although it faces execution and integration risks, its strategic shift towards a cloud-based security platform remains promising.
- Energy Sector Challenges: Occidental Petroleum (OXY) is projected to report a 72% year-over-year decline in earnings for Q4, reflecting pressures from weak oil prices and compressed margins, although its investment-grade balance sheet and recent acquisitions may provide support in the next commodity cycle.
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See More
