China's Gen Z Embraces Counterfeits, Leaving Luxury Brands Disappointed in Their Investment.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Source: Barron's
- Changing Consumer Landscape: The traditional Chinese luxury consumer, known for their brand obsession, is fading away.
- Emergence of a New Generation: A new group of savvy shoppers is rising, valuing shopping intelligence and experience over mere brand loyalty.
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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: 106.420
Low
70.00
Averages
106.76
High
130.00
Current: 106.420
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 product categories include skin care, makeup, fragrance, hair care and others. Its products are sold in approximately 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. 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 lipsticks, lip glosses, mascaras, foundations and others.
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.
China's Gen Z Embraces Counterfeits, Leaving Luxury Brands Disappointed in Their Investment.
- Changing Consumer Landscape: The traditional Chinese luxury consumer, known for their brand obsession, is fading away.
- Emergence of a New Generation: A new group of savvy shoppers is rising, valuing shopping intelligence and experience over mere brand loyalty.
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- Increased Household Tax Burden: U.S. households are projected to face an average tax increase of $1,000 in 2025, rising to $1,300 in 2026, highlighting the direct economic impact of tariffs on ordinary citizens.
- Tariff Revenue Figures: According to CBP data, the U.S. collected over $200 billion in tariffs between January 20 and December 15, 2025, with total customs revenue for 2025 estimated at $264 billion, yielding a net gain of approximately $132 billion after accounting for economic drag.
- Market Reaction: Following Trump's April 2025
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Investigation into Estee Lauder's Corporate Governance Breaches
- Shareholder Rights Investigation: Halper Sadeh LLC is investigating whether certain officers and directors of The Estee Lauder Companies, Inc. breached their fiduciary duties, potentially impacting corporate governance and shareholder rights.
- Legal Relief Options: Long-term shareholders of Estee Lauder may seek corporate governance reforms, fund returns, or court-approved financial incentives, aimed at enhancing transparency and accountability within the company.
- Importance of Participation: Shareholder involvement can improve company policies and oversight mechanisms, thereby enhancing shareholder value and ensuring more effective management of the organization.
- Legal Fee Arrangement: Halper Sadeh LLC will handle the case on a contingency fee basis, meaning shareholders will not incur out-of-pocket legal expenses, thus reducing the financial burden of participating in the rights enforcement process.
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- Ford's Earnings Miss: Ford reported its worst quarterly earnings miss in four years, with adjusted EPS of 13 cents, significantly below the expected 19 cents due to unexpected $900 million tariff costs and a fire at an aluminum plant, but forecasts a rebound in 2026 to restore investor confidence.
- Moderna Vaccine Application Rejected: Shares of Moderna fell over 10% after the FDA refused to review its flu vaccine application, highlighting tightening vaccine regulations despite no specific safety or efficacy issues cited, which may impact the company's market performance.
- Estée Lauder Sues Walmart: Estée Lauder is suing Walmart for selling counterfeit beauty products on its online marketplace, alleging Walmart facilitated these sales, which could negatively affect Walmart's brand image and sales performance.
See More
U.S. Nonfarm Payrolls Report Preview
- Employment Data Release: The Bureau of Labor Statistics is set to release January's nonfarm payrolls report at 8:30 AM ET, with expectations of a modest increase of 55,000 jobs, slightly above December's 50,000, indicating signs of economic stagnation.
- Ford Earnings Miss: Ford reported its fourth-quarter adjusted earnings per share at 13 cents, significantly below Wall Street's expectation of 19 cents, primarily due to unexpected tariff costs of $900 million and a fire at an aluminum plant, with a rebound year forecasted for 2026.
- Moderna Vaccine Application Denied: Shares of Moderna fell over 10% after the FDA refused to review its application for an experimental flu shot, with the company arguing that the FDA's refusal contradicted previous guidance without citing specific safety or efficacy concerns.
- Estée Lauder Sues Walmart: Estée Lauder has filed a lawsuit against Walmart, alleging the retailer sold counterfeit beauty products on its online marketplace, claiming that the items purchased were fake and highlighting the potential harm to consumers.
See More
China's Gen Z Embraces Counterfeits, Leaving Luxury Brands Disappointed in Their Investment.
- Changing Consumer Landscape: The traditional Chinese luxury consumer, known for their brand obsession, is fading away.
- Emergence of a New Generation: A new group of savvy shoppers is rising, valuing shopping intelligence and experience over mere brand loyalty.
See More
U.S. Supreme Court to Rule on Trump's Tariff Regime
- Potential Refunds: The U.S. Supreme Court is set to rule on February 20 regarding Trump's tariff regime, with a ruling in favor potentially triggering refunds exceeding $130 billion, significantly reshaping American trade policy.
- Increased Household Tax Burden: U.S. households are projected to face an average tax increase of $1,000 in 2025, rising to $1,300 in 2026, highlighting the direct economic impact of tariffs on ordinary citizens.
- Tariff Revenue Figures: According to CBP data, the U.S. collected over $200 billion in tariffs between January 20 and December 15, 2025, with total customs revenue for 2025 estimated at $264 billion, yielding a net gain of approximately $132 billion after accounting for economic drag.
- Market Reaction: Following Trump's April 2025
See More
Market Update: S&P 500 Declines and Upcoming CPI Data
- CPI Expectations: The consumer price index, set to be released at 8:30 a.m. ET on Friday, is expected to show a month-over-month increase of 0.3% and a year-over-year rise of 2.5%, which could significantly influence market sentiment and lead investors to reassess their risk appetite.
- Moderna Stock Fluctuations: Moderna's shares have surged 50% over the past three months, closing at $40.11 on Thursday, although this remains significantly lower than the pandemic peak of $497, indicating ongoing volatility in biotech stocks that investors are closely monitoring.
- Wendy's Stock Decline: Wendy's shares fell 7.7% on Thursday, down 55% from their 52-week high, highlighting the persistent pressures facing the fast-food industry, which may impact its future market performance.
- Retail Sector Dynamics: The Amplify Online Retail ETF dropped nearly 4% on Thursday, now down 19.5% from its September high, reflecting weakness in the retail market, especially after experiencing five consecutive weeks of declines, which could negatively affect overall consumer confidence.
See More
Investigation into Estee Lauder's Corporate Governance Breaches
- Shareholder Rights Investigation: Halper Sadeh LLC is investigating whether certain officers and directors of The Estee Lauder Companies, Inc. breached their fiduciary duties, potentially impacting corporate governance and shareholder rights.
- Legal Relief Options: Long-term shareholders of Estee Lauder may seek corporate governance reforms, fund returns, or court-approved financial incentives, aimed at enhancing transparency and accountability within the company.
- Importance of Participation: Shareholder involvement can improve company policies and oversight mechanisms, thereby enhancing shareholder value and ensuring more effective management of the organization.
- Legal Fee Arrangement: Halper Sadeh LLC will handle the case on a contingency fee basis, meaning shareholders will not incur out-of-pocket legal expenses, thus reducing the financial burden of participating in the rights enforcement process.
See More
US Jobs Report and Market Dynamics
- Job Data Expectations: The Bureau of Labor Statistics is set to release January's nonfarm payroll report at 8:30 AM ET, with expectations of 55,000 new jobs, slightly above December's 50,000, yet economists predict weak growth, which could dampen market confidence.
- Ford's Earnings Miss: Ford reported its worst quarterly earnings miss in four years, with adjusted EPS of 13 cents, significantly below the expected 19 cents due to unexpected $900 million tariff costs and a fire at an aluminum plant, but forecasts a rebound in 2026 to restore investor confidence.
- Moderna Vaccine Application Rejected: Shares of Moderna fell over 10% after the FDA refused to review its flu vaccine application, highlighting tightening vaccine regulations despite no specific safety or efficacy issues cited, which may impact the company's market performance.
- Estée Lauder Sues Walmart: Estée Lauder is suing Walmart for selling counterfeit beauty products on its online marketplace, alleging Walmart facilitated these sales, which could negatively affect Walmart's brand image and sales performance.
See More
U.S. Nonfarm Payrolls Report Preview
- Employment Data Release: The Bureau of Labor Statistics is set to release January's nonfarm payrolls report at 8:30 AM ET, with expectations of a modest increase of 55,000 jobs, slightly above December's 50,000, indicating signs of economic stagnation.
- Ford Earnings Miss: Ford reported its fourth-quarter adjusted earnings per share at 13 cents, significantly below Wall Street's expectation of 19 cents, primarily due to unexpected tariff costs of $900 million and a fire at an aluminum plant, with a rebound year forecasted for 2026.
- Moderna Vaccine Application Denied: Shares of Moderna fell over 10% after the FDA refused to review its application for an experimental flu shot, with the company arguing that the FDA's refusal contradicted previous guidance without citing specific safety or efficacy concerns.
- Estée Lauder Sues Walmart: Estée Lauder has filed a lawsuit against Walmart, alleging the retailer sold counterfeit beauty products on its online marketplace, claiming that the items purchased were fake and highlighting the potential harm to consumers.
See More
