Cramer's Morning Take: Estee Lauder 3/28/24

Jim Cramer (0:01)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

Jeff Marks (0:08)

We're seeing a new life in some of these stocks that just haven't been great performers the last couple of years. You had an upgrade of Estee Lauder today, Bank of America.

Jim Cramer (0:16)

Well, how about that? Let's talk about that. That is Fabrizio Freida pivoting once again. He pivoted from department stores in America to China and to travel the... do free.

Now he's pivoting back to the US with, amazingly, the Amazon store, but also dumping inventory, TJX.

Jeff Marks (0:34)

Yeah, the excess inventory is in TJX. I don't know if you want to be in off price as a strategic point of view.

Jim Cramer (0:41)

Well, that I'm not happy about.

Jeff Marks (0:42)

In terms of just getting rid of the inventory, but I think the Amazon news is really important.

There's been other companies in the space that have had a lot of success on Amazon. L'Oreal is one of them. So I think it's important, and this again is yesterday, that they announced a Clinique brand launching the US Amazon premium beauty store.

Jim Cramer (1:01)

Men and women.

You typically don't, the department store, the men don't go where they're spraying people in the face. But this is unique, how about that? And for basically, remember, the earnings were just smashed here. I mean, they just obliterated the numbers, unfortunately.

Jeff Marks (1:17)

Yeah, so it went from seven and change in fiscal year 22 to $2.22 estimated in fiscal year 24

Jim Cramer (1:23)

A lot of that is because-

Jeff Marks (1:23)

It's like a steel company, for example. Part of that reason, they did overshift, right? So they over-earned a couple years ago, and then obviously that inventory hasn't been moved in China and travel retail. Finally, they're getting closer to the normalized levels. That was the inflection point call that Frank had talked about last quarter.

Jim Cramer (1:40)

That may have been the worst company to retail I've ever seen. But a lot of that is China. A lot of that was a trade they did with Korea, where Chinese people went to Korea and then brought it back and then sold it.

That whole game is over.

Jeff Marks (1:54)

That's why he has to do better in the US and hopefully this Amazon is the beginning of that.

Jim Cramer (1:58)

And they're still selling T-Mall.

Jeff Marks (2:01)

Yeah.

Jim Cramer (2:01)

But China's not wealthy.

They pulled in their horns. That's what we're seeing. Join the CNBC Investing Club with Jim Cramer to catch my member exclusive morning minis every day at 10, 20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_3 (2:23)

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