Analyst Note
| Rebecca Scheuneman, CFA |Estee Lauder posted an impressive fiscal 2021 second quarter, with sales growing 5% compared with our expectation of a 6% decline. The Asia-Pacific region drove the upside, with 35% growth versus our 6% estimate, given a strong 11.11 Singles’ Day in China. Estee’s strong brands, which underpins its wide-moat rating, performed very well during the shopping holiday, with Estee Lauder ranking as the top overall beauty brand, while La Mer, MAC, and Jo Malone capture the top spots of the luxury beauty, prestige makeup, and fragrance categories, respectively.