Estee Lauder Outshines Nike as Turnaround Leader

Two consumer giants, Estee Lauder (NYSE:EL) and Nike (NYSE:NKE), have been struggling to recover from significant declines in their share prices over the past five years. Both companies brought in new leadership to turn things around, but their approaches couldn't be more different.

Estee Lauder's CEO, Stephane de la Faverie, has a track record of success with his Profit Recovery and Growth Plan, which concluded with $1.20 billion in gross benefits. In the latest quarter, Estee Lauder reported its fourth consecutive earnings beat, with adjusted EPS of $0.39 versus a $0.32 estimate on revenue of $3.63 billion.

Nike's story is less convincing. Despite reporting Q4 fiscal 2026 EPS of $0.72, $0.52 of that came from a one-time IEEPA tariff-recovery benefit. Revenue slipped 1.1% year over year, and the company's guidance calls for fiscal 2027 revenue to decline by low to mid-single digits.

For a retirement-focused investor evaluating turnaround evidence, Estee Lauder is the clear winner. A raised forward outlook is proof that the company's turnaround is working, whereas Nike's declining fundamentals are merely a promise of future success.