Estée Lauder, a beauty conglomerate facing a 6% sales decline in fiscal Q2 2025, has invested heavily in AI integration to address the challenge. The company aims to transform operational inefficiencies into competitive advantages by embedding generative AI tools into its supply chain, creative workflows, and customer experience.
Through partnerships with Adobe and Meta, Estée Lauder is boosting customer engagement through AR/VR tools and omnichannel strategies. However, Asia sales fell 11% in Q2 2025, which adds uncertainty to the company’s turnaround.
Despite these risks, Estée Lauder’s stock trades at a 30% discount to its five-year average valuation of 12.5x forward earnings. Key catalysts to watch include Q4 2025 Earnings, PRGP Milestones, and Digital ROI metrics.
Analysts recommend buying the stock on dips below $150/share, with a 12–18 month target of $180–$200, contingent on Asia recovery and margin expansion. The company’s long-term resilience hinges on AI-enhanced customer engagement, and its strategic pivot toward omnichannel dominance reflects a data-driven approach to the beauty industry.
Source: https://www.ainvest.com/news/est-lauder-ai-driven-turnaround-tech-revive-beauty-giant-2507