Success of Estee Lauder “Love Profusion” Ad

Never underestimate the Material Girl. Madonna‘s music is now also hawking perfume by Estée Lauder.

The new marketing pitch, for the Beyond Paradise brand, makes Estée one of the most attractive stocks in beauty products, says UBS Warburg’s Andrew McQuilling.

The company stumbled in fiscal 2002 but has recovered nicely in the year that ended June 30, with sales up 8% to $5.1 billion and net income up 50% to $320 million. Also helping was the company’s purchase in May of Michael Kors Fragrances from LVMH. The prospect of further earnings gains makes the stock appealing even at 26 times trailing earnings, says McQuilling.

Source: Forbes.