e.l.f. Beauty and Estée Lauder benefit from inflation via the lipstick effect

Industry
โดย Yahoo Finance·Read original
Summary · why it matters

Water Tower Research Managing Director Linda Bolton Weiser explains how e.l.f. Beauty and Estée Lauder benefit from inflation through the lipstick effect, where consumers buy small beauty items for a mood lift when budgets are tight. e.l.f. Beauty is well-positioned because it offers prestige-like products at very low mass prices, even below Covergirl and Maybelline, giving it room to raise prices and attract trade-downs from prestige brands. Procter & Gamble is called the king of innovation for its superior product performance and sophisticated research, allowing it to take price increases even when consumers are strapped by delivering value through better-functioning products.

Impact on stocks 3

Consumer Staples▲ · 3 stocks
ELF Beauty Inc
ELF
▲ PositivePricingrelevance

e.l.f. Beauty has room to raise prices and attracts trade-downs from prestige brands due to low price positioning.

Estee Lauder Companies Inc
EL
▲ PositiveDemandrelevance

Consumers trade down to prestige brands like Estée Lauder during inflation due to the lipstick effect.

Procter & Gamble Company
PG
▲ PositiveTechnologyrelevance

Procter & Gamble is called the king of innovation with superior product performance, allowing price increases.

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