Estee Lauder (EL) has the dubious distinction as the worst-performing stock in our portfolio in 2023, and we're growing less optimistic about CEO Fabrizio Freda's ability to right the ship.
Jim added he may consider selling Estee Lauder due to the uncertainty that lies ahead.
Alongside fiscal Q1 results, Estee Lauder management cut its fiscal 2024 outlook suggesting the trajectory of getting back on track for China consumer demand growth will take longer than expected.
Jim believes the Club has been patient and has given Estee Lauder the time required for inventories in its Asia travel retail business to normalize.
An Estee Lauder pop-up store is seen inside daimaru Department Store on Nanjing Road Pedestrian street in Shanghai, China, August 6, 2021.
Persons:
Estee Lauder, Fabrizio Freda's, We're, Freda, Fabrizio Freda, Jim Cramer, Jim, Lauder YTD, Tom Ford, Jo Malone, Estee Lauder's, it's, Lauder, hasn't, Jim Cramer's
Organizations:
Wall, Management, CNBC, daimaru, Getty
Locations:
China, Asia, Nanjing, Shanghai