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Company: Estee Lauder Companies (EL)
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  Reduction in air traffic affect EL Sales

EL's retail travel business currently makes up over 40% of its sales and over 20% of its profits. This means that a significant portion of EL's profits are tied to air travel. With air travel on the decline due to terrorism and regulations, EL stands to see its sales fall along with it.

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  Decrease in air traffic lowers EL Sales

EL's retail travel business currently makes up over 40% of its sales and over 20% of its profits. This means that a significant portion of EL's profits are tied to air travel. With air travel on the decline due to terrorism and regulations, EL stands to see its sales fall along with it.

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  Sales reliant on emerging markets as US consumption slows

In the current weak retail environment, EL's mid-to-high end cosmetic and personal care products are in lower demand as consumers tighten budgets and forego non-necessities or opt for cheaper alternatives. EL's strong Q1 2009 (ended Sept. 30, 2008) sales and earnings were largely reliant on the weak dollar and strong performance in emerging markets such as Asia. As global economic conditions continue to deteriorate, EL will see a drop in demand for its products and greater competition from more discounted brands.

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