Stephane de La Faverie

Estée Lauder posted 4% sales growth (first time in 3 years). They have a diversified manufacturing footprint: 5 sites in North America, 3 in Europe, 1 in Japan. The market is indiscriminately selling consumer goods stocks on tariff fears. However, EL's "produce where you sell" strategy insulates them from cross-border tariffs better than peers who manufacture centrally and export. Additionally, strong growth in China skincare suggests the turnaround is working despite macro headwinds. Long EL as a tariff-resilient turnaround play. Continued weakness in US consumer confidence or a total collapse in Chinese luxury spending.