Estee Lauder Makes Tom Ford Beauty Entirely Its Own In Deal Valued At $2.8Bn
Estee Lauder’s agreement values Tom Ford Beauty and its trademarks at $2.8bn. Acquisition will “fortify" growth plans for the brand and help to fuel long-term luxury beauty momentum, says CEO Fabrizio Freda.
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Estee Lauder Companies says fiscal 2023 second-quarter sales will decline high double digits due to ongoing COVID-19 restrictions in China, tightening inventory by some US retailers, and a strong US dollar. The firm expects improvement in the back half of the year, but has adjusted full-year guidance.
ELC’s Guillaume Jesel has been named president of global brands overseeing Tom Ford Beauty and Balmain Beauty, the latter targeted for launch in fall 2024 under a licensing agreement with the French fashion house announced on 26 September. Jesel also will head up luxury business development with a “key role in prospective acquisitions and investment strategy.”
The Estee Lauder Companies recorded a sales decline of 10% in the fiscal 2022 fourth quarter, generally in line with revised guidance in May as new China lockdowns were impacting its business. Challenges in China and fragrance license terminations are expected to weigh heavily on fiscal 2023 first-quarter results as well, with improvements in Q2 and, ultimately, 7% to 9% organic growth for the year.