Estée Lauder Executive Departs as Recent Guidance Boost Puts Stock Valuation in Focus
Estée Lauder executive Justin Boxford was named CEO of Capri Holdings, while analysts and valuation models assess EL shares following raised fiscal 2027 targets.
Luxury goods group Capri Holdings has appointed Justin Boxford as its new chief executive officer and board member, effective January 4, 2027. Boxford spent more than 20 years at The Estée Lauder Companies Inc. after joining the cosmetics business in 2004. He most recently worked as Estée Lauder's global president of Luxury Beauty Brands and was a member of the executive leadership team.
During his tenure at Estée Lauder, Boxford served as global brand president for Estée Lauder and Aerin Beauty and led skincare brand La Mer for five years, during which it expanded to more than twice its scale. His background also includes regional oversight across China and Asia Pacific, leading the launch of Tom Ford Beauty in the region, and directing travel retail and marketing operations.
The leadership shift follows Estée Lauder's first-quarter fiscal 2027 earnings report on November 2, where shares rose 2.2%. Net sales climbed 7% year over year to $3.72 billion, and organic net sales increased 6%. Adjusted diluted earnings per share reached $0.72, up from $0.32 in the prior-year quarter. Following these results, management raised its fiscal 2027 outlook for sales and earnings, reaffirmed its dividend, and detailed plans tied to its Profit Recovery and Growth Plan, AI technology, and skincare platforms.
Valuation questions have emerged after the recent run. According to Simply Wall St, a discounted cash flow assessment places the intrinsic value modestly below the recent closing price of US$112.33, with the stock trading at a price-to-earnings ratio of 110.6x compared with trailing twelve-month free cash flow of about $1.35b. While EL shares have advanced 30.4% over the past year, they remain down 65.8% over a five-year period. Potential headwinds cited by Simply Wall St include restructuring execution risks, workforce reductions, and an ongoing external investigation.
Wall Street sentiment remains largely constructive. Among 27 analysts covering EL, Barchart reported a consensus "Moderate Buy" rating based on 11 "Strong Buy," one "Moderate Buy," 14 "Hold," and one "Strong Sell" recommendations. Analysts forecast fiscal year diluted earnings per share to grow 36.7% to $3.43. The mean price target sits at $113.44, with a Street-high target of $126, while Truist Securities maintained a "Hold" rating and a $167 target on November 5, 2026.