Ticker: EL | $65.17 (+2.36%) as of May 16, 2025 💲💄

🌟 Trigger: When the Big Short Buys Big

Michael Burry, famed for calling the 2008 financial meltdown and made famous in The Big Short, just doubled down on Estée Lauder. His Scion Asset Management bought another 100,000 shares in Q1 2025—bringing the total to 200,000 shares, now worth $13 million.

Why does this matter? Because Burry sold everything else.

Now that’s a makeover. 🎈

🌟 Institutional Glam Squad: 95.35% Float Ownership

Not just Burry. Wall Street is stocked with Estée fans:

• Vanguard Group: 26.56M shares (11.34%)

• BlackRock: 15.62M (6.67%)

• FMR: 14.61M (6.24%)

• State Street: 10.79M (4.61%)

• JPMorgan, Eagle Capital, Capital World... and the list goes on.

That's not mascara—that's conviction. 🧼

🔍 For full Institutional Ownership breakdown, see here

🧠 Insider Glow-Up

Talk about putting your money where your mouth (or makeup bag) is:

• Director Paul Fribourg: 4 large insider buys between Nov 2024 and Feb 2025. Total investment? Over $23 million.

• CFO Akhil Shrivastava: Modest, but meaningful $46K purchase.

Fribourg runs Continental Grain. Grain and glam? A strange mix—unless you're talking skincare additives. Oats are in.

💼 New CEO: Back to the Future

In Jan 2025, Stéphane de La Faverie took over as CEO. He previously led Estée Lauder (the brand) and played a key role in:

• Driving digital-first marketing

• Launching in China

• Scaling brands like The Ordinary and Le Labo

He’s now tasked with bringing the whole company back to beautiful.

📊 Recent Results: Ugly? Or Beauty in Progress?

FY 2024 Summary

• Revenue: $15.61B ⬇️ 2% YoY

• Net Income: $390M (vs. $1.01B prior year)

• Diluted EPS: $1.08 ⬇️ 61%

• Adjusted EPS: $2.59 (down 25%)

Ouch. But not fatal. And there were highlights:

• Organic sales returned to growth in H2 2024.

• Net cash flow from ops hit $2.36B, up from $1.73B.

• Capital expenditures declined.

• They paid $0.95B in dividends with a yield of 2.15%.

They're still a very well-managed company.

For more resources on Estee Lauder's financial statements,
Check this out.

🤝 Strategy Reset: Let’s Make EL Great Again

CEO de La Faverie laid out 2025 priorities:

• Reignite Skin Care (hello La Mer night creams)

• Leverage Fragrance (luxury scents still selling)

• Precision Marketing via data-led initiatives

• Amazon launch for brands like The Ordinary

• Profit Recovery & Growth Plan to simplify ops & boost margins

For another possible turnaround or contrarian play,
Check our take on UnitedHealth Group.

🌍 Key Market Focus: China & Beyond

China has been a drag. Weak consumer sentiment, travel retail declines, and beauty fatigue have hurt results.

But the long-term story remains:

• Estée is still a top prestige brand in China

• The company is expanding in Japan, Latin America, and Europe

If they stabilize-to-reenergize China and capitalize elsewhere, the rebound could be strong.

☑️ The Bull Case: What Makes EL a Buy

1. Legendary Brand with global clout

2. CEO with Proven Track Record

3. Strong Free Cash Flow to fund growth/dividends

4. Strategic Innovation Pipeline

5. High Insider + Institutional Buy-in

6. Near Multi-Year Lows: down from ~$370 in January 2022, EL now trades near $65—talk about a markdown! 🎯
7. Valuation Vibes: At a P/E ratio of 25, Estée Lauder isn’t bargain-bin cheap, but it’s not overpriced either, especially for a prestige brand with global clout. If earnings get a makeover, this stock could glow up fast. All in all? A pretty price for a beauty powerhouse.💄 

⚡ Risks & Wrinkles

• China remains a wild card 🇨🇦

• Beauty is competitive & cyclical

• Restructuring hiccups (DECIEM, etc)

• Tariff tantrums & global supply chain

• What if women everywhere just say “Nah, I’m good without it”?

Also: broader market collapse = nobody's putting on mascara.

💖 Funanc1al Verdict: Lipstick Worth the Buy?

This isn’t just a play on beauty.
It’s a play on global luxury, digital reinvention, and shareholder commitment.

If EL gets its groove back, this may go from pretty meh to pretty magnificent.

Just like a great foundation—it needs a few layers and time to set.

📊 Key Stats at a Glance

• Dividend Yield: 2.15%

• Cash on Hand: $3.4B

• Forward P/E: ~18

• Down from ATH: ~82% (early 2022: $370+)

📢 Final Word (and Not Just a Slogan)

Maybe, just maybe, Estée is about to stage one of the prettiest turnarounds in recent market memory. Burry thinks so. Fribourg thinks so.

Now the only question is: Do you feel pretty confident too?

❓ Disclaimer

We don’t sell lipstick. We don’t sell stocks either. Just fun, flair, and maybe a little financial glow-up. Invest at your own risk. Always.

🧭 Want More Like This?

👉 Browse our Insider Purchases Hub
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