Citi‘s Most Read - Consumer

研报英文原文证据摘录

Citi‘s Most Read - Consumer

Xiaopo Wei, CFA | Tiffany Feng | Lydia Ling | Vincent Young | Brian Cho

Estee Lauder Inc (EL.N) - Adding Upside 90-Day Catalyst Watch

We are opening a 90-days positive catalyst watch on EL into F4Q’26 earnings on

8/19. We expect EL to deliver solid trends in Mainland China with improving

category growth and EL market share performance and improving topline & market

share trends in the US in F4Q. We think positioning has shifted negatively EL with

many investors expecting FY27 guidance will come in below EL’s preliminary

guidance based on our recent conversations. However, we believe the company

will provide FY27 guidance in-line with its preliminary targets with industry checks

pointing to more encouraging trends for the category & EL’s brands in the China

ecosystem during the 6/18 and the Dragonboat Festival holidays. Additionally, we

also continue to see gross and operating margin upside with still strong benefits

from the PRGP program.

Buy | Target price US$110.00

Filippo Falorni, CFA

Burberry Group PLC (BRBY.L) - Burberry Forward delivering: 1Q27 Retail LFL

+5%, Wholesale upgraded and FX headwinds reverse

A fourth consecutive quarter of positive LFL since the launch of Burberry Forward

strategy in November 2024: 1Q27 Retail LFL +5% (Citi/cons.+5%) in line with

4Q26 (+5%) against a 5ppt tougher comparison basis, with 2Y-stack LFL

improving to +3% from -1%, turning positive for the first time in over two years.

Performance was driven by the commercial success of the S/S26 collection and

marketing campaigns centered on summer themes, supported by a mix of global

and localised execution in the US and China, driving customer recruitment,

improved sales quality (lower markdown YoY), higher conversion and slightly