EELEstee Lauder Companies, Inc. (The)

Estée Lauder sells premium cosmetics and fragrance — a business tied too tightly to the Asian shopper.

The portfolio holds dozens of brands at different positions, from pharmacy skincare to luxury fragrance. The category is traditionally resilient: lipstick and cream remain an affordable luxury even in a downturn. Margins are high because the customer pays for the name and the ritual rather than for the contents' cost.

The weak point is travel retail and Chinese demand: a substantial share of sales went through travellers buying cosmetics in the duty-free shops of Hainan and Korea. That channel's collapse and the shift of shoppers to local Asian brands hit the company harder than its competitors and forced cost cuts. Estée Lauder pays a dividend.