Did Estée Lauder’s (EL) AI Scent Advisor Just Redefine Its Luxury Fragrance Growth Narrative?

• In early December 2025, The Estée Lauder Companies and Jo Malone London launched the Jo Malone London Scent Advisor, an AI-powered, conversational tool on JoMalone.com in the US and UK that uses Google’s Gemini and Vertex AI to recreate the brand’s in-store fragrance consultation online.
• This digital advisor, developed by Estée Lauder’s AI and Innovation teams, signals how the company is pairing proprietary fragrance data with AI to improve online discovery and support its broader push to make fragrance a more important growth driver.
• We’ll now examine how this AI-driven Scent Advisor, reinforcing Estée Lauder’s push into luxury fragrance and digital personalization, influences its investment narrative.

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Estée Lauder Companies Investment Narrative Recap

For Estée Lauder to make sense in a portfolio, you need to believe its investments in innovation, digital channels and restructuring can turn recent losses into sustainably profitable growth. The Jo Malone London Scent Advisor supports the near term catalyst around AI driven personalization and online conversion, but it does not materially change the key risk that high fixed costs and restructuring spend may pressure margins if revenue recovery lags.

The most relevant recent announcement alongside the Scent Advisor is Estée Lauder’s partnership with Shopify in October 2025, aimed at modernizing its digital and omnichannel infrastructure from early 2026. Together, these moves show the company working to deepen online engagement and improve ecommerce efficiency, which ties directly into the catalyst of accelerating digital growth and better marketing ROI.

Yet behind this push into AI and luxury fragrance, investors should still be aware of...

Read the full narrative on Estée Lauder Companies (it's free!)

Estée Lauder Companies' narrative projects $16.0 billion revenue and $1.4 billion earnings by 2028. This requires 3.9% yearly revenue growth and about a $2.5 billion earnings increase from -$1.1 billion today.

Uncover how Estée Lauder Companies' forecasts yield a $102.17 fair value, in line with its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community span roughly US$61 to US$118 per share, underscoring how far apart individual views can be. When you weigh those against Estée Lauder’s heavy restructuring spend and margin pressure, it becomes even more important to compare several viewpoints before deciding how this stock might fit into your portfolio.

Explore 8 other fair value estimates on Estée Lauder Companies - why the stock might be worth 42% less than the current price!

Build Your Own Estée Lauder Companies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Estée Lauder Companies research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Estée Lauder Companies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Estée Lauder Companies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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