In late 2025, The Estée Lauder Companies and Jo Malone London introduced the AI-driven Jo Malone London Scent Advisor, aiming to enhance fragrance personalization for consumers in the US and UK. This initiative coincides with Estée Lauder’s Profit Recovery and Growth Plan, signaling a strategic blend of cost restructuring and digital innovation in its fragrance sector. The Scent Advisor is expected to drive online growth, but significant risks remain, particularly the execution of cost cuts and profit recovery amid previous restructuring charges. To meet projected revenues of $16.0 billion and earnings of $1.4 billion by 2028, Estée Lauder must achieve a 3.9% annual growth rate. The current fair value estimate stands at $101.87, yet perspectives vary widely among analysts, some suggesting valuations as low as $61. In these dynamic market conditions, investors should remain vigilant about potential risks associated with heavy restructuring spending.
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