Earlier this month, 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 replicate the brand’s in-store fragrance consultation online.
The launch, coming shortly after Estée Lauder opened its Fragrance Atelier in Paris, underlines how the group is pairing data-driven personalization with luxury fragrance to strengthen its position in online and experiential beauty.
We’ll now examine how this AI-driven Scent Advisor initiative fits into Estée Lauder’s broader push into digital personalization and luxury fragrance growth.
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To own Estée Lauder today, you need to believe the company can convert its prestige brands and global reach into a return to profitable growth, helped by higher-margin digital and fragrance sales. The Jo Malone Scent Advisor supports the digital personalization catalyst but does not materially change near term dependence on travel retail and soft Western consumer demand, which remain key swing factors for earnings volatility.
The recent Q1 2025 results, where adjusted operating income rose strongly year over year despite prior full year losses and restructuring charges, are the most relevant backdrop for this launch. Together, they highlight how management is trying to pair cost savings and portfolio resets with innovation in online discovery and luxury fragrance to support margins and justify ongoing high SG&A, even as impairment risks and high fixed costs remain in focus.
Yet against this push into AI-powered 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, a 3% downside to its current price.
Eight fair value estimates from the Simply Wall St Community span roughly US$60.66 to US$117.70, showing how differently shareholders can view Estée Lauder’s prospects. When you weigh that spread against the company’s heavy spending on restructuring and innovation, it underlines why many investors are closely watching whether new initiatives like AI personalization can support margins and a sustained earnings recovery.