ESTÉE LAUDER COMPANIES' ANNOUNCEMENT REGARDING POSSIBLE DEAL WITH PUIG
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 23 2026
0mins
Should l Buy EL?
Source: moomoo
Potential Transaction: The Estée Lauder Companies has issued a statement regarding a possible transaction with Puig, indicating ongoing discussions or negotiations.
Market Implications: This potential deal could have significant implications for both companies, potentially affecting their market positions and strategies in the beauty industry.
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Analyst Views on EL
Wall Street analysts forecast EL stock price to rise
18 Analyst Rating
8 Buy
9 Hold
1 Sell
Moderate Buy
Current: 80.830
Low
70.00
Averages
106.76
High
130.00
Current: 80.830
Low
70.00
Averages
106.76
High
130.00
About EL
The Estee Lauder Companies Inc. is a manufacturer, marketer and seller of skin care, makeup, fragrance and hair care products. Its products are sold in over 150 countries and territories under a number of brand names, including Estee Lauder, Aramis, Clinique, Lab Series, Origins, M.A.C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin Paris, TOM FORD, Smashbox, AERIN Beauty, Le Labo, Editions de Parfums Frederic Malle, GLAMGLOW, Kilian Paris, Too Faced, Dr.Jart+, and the DECIEM family of brands, including The Ordinary and NIOD, and BALMAIN Beauty. It is a licensee for fragrances, cosmetics and/or related products for AERIN, BALMAIN, and Dr. Andrew Weil. Its skin care products include moisturizers, serums, cleansers, toners, exfoliators, facial masks, body care, sun care products and others. Its makeup products include foundations, powders, concealers and setting sprays, lipsticks, lip liners and lip glosses, and mascaras, eyeshadows and eyeliners.
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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- Menu Localization: Gourmet Investments intends to retain Olive Garden's global menu while adding more vegetarian options to cater to India's large vegetarian population, a strategy that enhances brand acceptance in the local market.
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- Buyer Interest: Sources indicate at least one interested buyer for Too Faced and Smashbox, while several others are considering Dr. Jart, suggesting ongoing market demand for these brands that could generate substantial cash flow for Estée Lauder.
- Merger Negotiation Progress: Puig's CEO confirmed ongoing acquisition talks with Estée Lauder, although no final decision has been made, which may influence Estée Lauder's strategic direction and future growth prospects.
- Financial Performance Impact: In its latest earnings report, Estée Lauder noted a double-digit sales decline for Too Faced in the fiscal third quarter, contributing to flat sales for the parent company's makeup business, potentially accelerating the brand sale initiative to improve overall performance.
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- Historical Context: Estee Lauder acquired Malone's perfume brand and the rights to her name in 1999, with Malone leaving in 2006 to launch her new brand, 'Jo Loves', providing crucial context for the ongoing legal dispute.
- Defense Highlights: Zara's defense indicates that Estee Lauder complained in 2020 about Zara's use of 'Jo Malone' on social media, but their lawyers later confirmed this usage was within permissible limits, suggesting Zara's practices are legally sound.
- Pricing Comparison: Zara's perfumes are priced at £35.99 per 100ml, while Jo Malone's start at £122 for the same volume, indicating a potential impact on consumer perception regarding brand positioning and market segmentation.
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- Court Review Process: The settlement agreement was filed in Manhattan federal court on Thursday and requires court approval; if approved, it will provide the company with legal certainty and reduce the risk of future litigation.
- Strategic Impact Assessment: While this settlement will incur short-term financial costs, it also compels Estee Lauder to reassess its market strategy, ensuring improvements in compliance and transparency to restore investor confidence and maintain brand reputation.
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