Estée Lauder Cos. shares tumbled after its outlook boost failed to reassure investors about the pace of the cosmetics conglomerate’s turnaround.
Historically, Estée Lauder raised the prices on its products at a low-single-digit rate, largely in line with inflation. Under de La Faverie, though, price increases have been lower than in the past and below the broader market, according to Telsey Advisory Group analyst Dana Telsey. That’s intended to target “unit growth to win more consumers and grow market share,” she wrote in a research note.
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