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Kristen Adams Erika Espinoza Freshtah Hamidi Latisha Jones

Kristen Adams Erika Espinoza Freshtah Hamidi Latisha Jones. Company Overview. Company Overview: Products/Brands. Company Overview: We are committed to…. Company Overview: 2012 Net Sales. Liquidity Ratios.

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Kristen Adams Erika Espinoza Freshtah Hamidi Latisha Jones

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  1. Kristen Adams Erika Espinoza Freshtah Hamidi Latisha Jones

  2. Company Overview

  3. Company Overview: Products/Brands

  4. Company Overview: We are committed to…

  5. Company Overview: 2012 Net Sales

  6. Liquidity Ratios Overall, in comparison to Loreal, The Estee Lauder Companies Inc. is in better shape of turning its assets into cash in a more timely manner.

  7. Asset Management Ratios Estee Lauder is more effective in utilizing its assets to generate sales in comparison to its top competitor. This is shown with higher turnover ratios.

  8. Capital Structure Ratios With a higher debt ratio, Estee Lauder appears less appealing to shareholders due to its dependence on borrowing funds to finance its assets. There is a substantial difference when compared to its top competitor, L'Oreal.

  9. Profitability Ratios Overall, Estee Lauder is in better shape than L'Oreal. With a higher gross profit margin, Estee Lauder's ability to control its expenses is better. Estee Lauder's operating profit margin and net profit margin are not as competitive, meaning its expenses are high in comparison to its sales. Estee Lauder has a better operating return on assets, meaning that it earned more net operating income per dollar of investment in assets. Estee Lauder has a much better return on equity, showing its cost control. This ratio makes Estee Lauder more appealing to stockholders as it shows their investments pay off.

  10. Strategy • In 2009, Estee Lauder officially initiated its long term strategy. • “We continue to focus on fewer but more impactful products and an increasing number geared to local consumers in specific markets.” - Fabrizio Freda, CEO, President, & Director

  11. Strategy • The strategy includes a variety of different activities and sub-strategies that helped increase sales and revenues throughout the past four quarters. • Pull-push marketing • Put efforts in offering best in class, high-class point of sale services both in person and online to increase customer satisfaction. • Expand all branches globally • Estee Lauder was able to achieve success in all the strategies listed above while reducing costs of their products.

  12. The Industry • Growth of the Anti- Aging segment in the beauty industry • The use of celebrities in ad campaigns • Magazine and television ad-space for beauty companies have been increasing tremendously

  13. The Competitors • L'Oreal • Avon Products • Revlon • Elizabeth Arden • Bare Escentuals

  14. External Factors • Currency Fluctuation • 57% of sales revenues come from markets that are outside of the U.S. • Sales performances fluctuate as the value of the U.S. dollar fluctuates. • The emergence of new competitors • The state of the worldwide economy

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