Estee Lauder's skincare segment is the most important segment for the company that contributes to almost 41.48% of the company's total revenue generation. It is important to mention the fact that at present, customers are shifting from traditional skincare products such as serums etc. to innovative products such as skincare oils and masks.
The company's acquisition of the brand GLAMGLOW, which is primarily a company that focuses on the production of skincare masks, suggests that Estee Lauder has understood the importance of producing and selling these innovative products. This will have a significant impact on the earnings as the introduction of innovative products will not only help it retain its existing customers but will also allow it to attract new customers increasing overall revenue generation. This increase will then lead to improved returns for investors. At the same time, the company will manage to gain more popularity with the help of innovative products as a result of which its goodwill in the market will increase as well. This will help the Estee Lauder's stock price to increase in the long run as well.