THE WHAT? Piper Jaffray has downgraded The Estee Lauder Companies shares from overweight to neutral, according to a report published by CNBC.
THE DETAILS Despite its strong skin care offer, a fall in make-up spend would hit Lauder hard and prestige make-up sales dropped 4 percent in the second quarter of 2019, according to figures from NPD Group, per CNBC. Lauder’s strong sales are reliant on its performance in China and trade tensions continue to rumble between the US and the Middle Kingdom.
THE WHY? The rise of the ‘VSCO girl’ trend in the west, which sees teens embracing their natural beauty and using less products for environmental reasons instead spending on accessories that chime with their surfer aesthetic and Indie brands with strong values, will hit sales says Piper Jaffray. Its fall teen survey revealed cosmetics spend to be the lowest in nearly a decade.