U.S. — The Estée Lauder Companies Inc. stock declined due to the impact of a war on consumer spending and a proposed merger with a competitor, according to the Hardman Johnston Large Cap Equity Strategy investor letter issued on March 31, 2026. The letter stated: "Detractors were led by The Estée Lauder Companies Inc. ( NYSE:EL). While there remains a strong case for accelerating profit growth based on better execution and a more efficient operation, the combination of the war and its impact on consumer spending, along with a proposed merger with a competitor caused the stock price to reset. We will evaluate whether our 3-5 year thesis is affected by these events."

On July 1, 2026, The Estée Lauder Companies Inc. closed at $82.47 per share, with a market capitalization of $29.84 billion. The company's shares lost 7.04% over the 52 weeks preceding that date, and posted a one-month return of -0.52%.

In the quarter preceding the first quarter of 2026, 50 hedge fund portfolios held The Estée Lauder Companies Inc. By the end of the first quarter of 2026, that number decreased to 47. During the first quarter of 2026, the Hardman Johnston Large Cap Equity Strategy achieved a gross return of 0.68% and a net return of 0.57%, while the S&P 500 Total Return Index returned -4.33%.

Why It Matters

The Estée Lauder Companies Inc. manufactures, markets, and sells skin care, makeup, fragrance, and hair care products. The decline in the company's stock, as noted in the investor letter, occurred alongside a decrease in the number of hedge fund portfolios holding the company during the first quarter of 2026. The investment strategy indicated it will evaluate if its 3-5 year thesis is affected by these events.