A package deal no more. According to multiple industry sources, the  Estée Lauder Cos. is no longer marketing Too Faced, Smashbox and Dr. Jart together. Instead, the makeup brands are being offered together and Dr. Jart by itself. More from WWD After implementing a new strategy to turn around the beauty company’s fortunes, chief executive officer Stéphane de La Faverie revealed last year he is assessing the group’s portfolio. While the company has not confirmed publicly which brands are up for sale, sou ...

Core Viewpoint - Estée Lauder is undergoing a gradual but clear recovery, as evidenced by its latest financial report showing a net sales increase of $4.229 billion (approximately 29.353 billion RMB), a year-on-year growth of 6%, and a net profit turnaround from a loss of $590 million (approximately 4.095 billion RMB) in the same quarter of the previous fiscal year to a profit of $162 million (approximately 1.124 billion RMB), marking a significant improvement of 127% [3][4]. Financial Performance - The company has achieved double-digit growth for the second consecutive quarter, with skincare, makeup, fragrance, and scalp care all showing growth, and the latter three categories returning to profitability [3]. - For the fiscal year 2026, Estée Lauder anticipates a return to positive revenue growth, projected between 0% and 3% [4]. - Over the past 12 months, the company's stock price has increased by 46.59% [4]. Strategic Initiatives - The recovery strategy, termed "Beauty Reimagined," focuses on cost-cutting measures such as layoffs, outsourcing non-core services, and divesting underperforming brands while reallocating resources to brands and products with growth potential [5]. - Deciem, a Canadian skincare group, has seen sales surpassing the total of all other skincare brands under Estée Lauder, marking a historic first for the company [5]. - The Ordinary, a key brand under Deciem, has been able to innovate products at a faster pace than traditional brands within the group, launching nine new products in the past year [6]. Brand Development - The luxury skincare brand La Mer is transitioning from a single star product to a more comprehensive high-end skincare system, with an increased pace of new product launches [7]. - Estée Lauder has significantly increased its investment in e-commerce platforms like Amazon, Shopify, TikTok, and Douyin, adopting an aggressive advertising strategy that matches advertising spend to revenue [7]. - Online sales now contribute nearly one-third of the company's total revenue, an increase of approximately 3 percentage points from 2024 [7]. Market Expansion - The company is seeking to rebalance growth by expanding in the Americas and emerging markets without sacrificing its position in the Chinese market [8]. - Estée Lauder has invested in two local Chinese brands, CODEMINT and Melt Season, and is consciously reducing its reliance on duty-free channels in China and South Korea [9]. Asset Management - The company is divesting brands such as Too Faced, Smashbox, and Dr. Jart due to declining growth potential in the competitive market [10]. - The estimated valuation for these assets is in the low nine-digit dollar range, significantly below historical acquisition costs [10]. Investor Focus - Investors are primarily concerned with the company's ability to achieve moderate sales growth without exacerbating balance sheet pressures and the timeline for a return to profitability [11]. - The recovery path is expected to require time, patience, and consistent execution [12].

Core Viewpoint - Estée Lauder is considering selling three brands: Dr.Jart+, Too Faced, and Smashbox, with a potential valuation significantly lower than their original acquisition prices [2] Group 1: Brand Valuation and Sale - The estimated sale price for the three brands is in the "low nine figures," approximately between $300 million to $500 million [2] - Estée Lauder acquired Smashbox for $2-3 billion in 2010, Too Faced for about $1.45 billion in 2016, and Dr.Jart+ for over $1.1 billion, totaling over $2.5 billion for all three brands [2] Group 2: Strategic Changes and Brand Performance - Since the new CEO took office in January 2025, Estée Lauder has initiated significant changes, including a new growth strategy called "Beauty Reimagined," focusing on a streamlined organizational structure and reallocating resources to brands with higher growth potential [2] - The brands in question have seen a decline in performance and competitiveness over time, leading to their consideration for sale [2][3]

Group 1: Luxury Goods Industry - The luxury goods sector is undergoing significant adjustments with management changes, capital maneuvers, and strategic optimizations as core themes, reshaping the industry landscape [1] - Givenchy and Dior have initiated management changes to enhance brand competitiveness, while Alo has hired a former Dior executive to accelerate its high-end lifestyle transformation [1][2] - LVMH continues its management reshuffle, appointing Amandine Ohayon as CEO of Givenchy and promoting Alessandro Valenti to a key role at Dior, reflecting a strategy focused on internal talent development [6][8][9] Group 2: Sportswear Industry - Anta Sports has made a bid to acquire a 29% stake in Puma, which would make it the largest single shareholder, amidst Puma's declining sales and restructuring efforts [4][5] - Puma has appointed Nadia Kokni as Global Brand Marketing Vice President to lead its marketing strategy during a critical phase of brand restructuring [10] Group 3: Beauty Industry - Estée Lauder is considering selling three brands for $300-500 million, significantly less than the $2.5 billion spent on their acquisition, as part of a strategy to focus on high-end beauty [11][12] - L'Oréal plans to launch over 20 new products in 2026, leveraging multi-channel strategies to capture market growth, following strong performance in recent years [17][18] Group 4: Market Trends - The beauty industry is shifting from incremental to stock market pressures, with high-end positioning becoming increasingly important [1] - The trend of local business autonomy is highlighted by the Shanghai New World New Maru Center ending its partnership with Japanese firms to operate independently, showcasing resilience in local commerce [1][16] Group 5: Company-Specific Developments - Alo has launched a high-end custom series and plans to expand its international presence, including a flagship store on the Champs-Élysées by 2026 [3] - The family behind the Chinese beauty brand Mao Geping plans to sell shares worth up to 1.41 billion HKD, raising concerns about the impact on the company's future despite its current growth [14][15]

Core Viewpoint - Estée Lauder is reportedly considering selling its brands Too Faced, Smashbox, and Dr.Jart+ (collectively referred to as "Tijia Ting") at a significantly reduced price, reflecting a strategic shift towards streamlining its brand portfolio amid ongoing sales declines [1][2][3]. Group 1: Brand Sale Details - The three brands are being pitched to potential buyers with an expected total sale price in the low nine figures, estimated between $300 million to $500 million (approximately 2.09 billion to 3.49 billion RMB) [3]. - Estée Lauder originally acquired these brands for over $2.5 billion (approximately 17.46 billion RMB), indicating a potential loss of around 80% if sold at the current estimated price [3]. - Dr.Jart+ has been under Estée Lauder for only six years, highlighting the rapid decline in brand value [3]. Group 2: Strategic Context - The sale aligns with Estée Lauder's broader strategy under CEO Stéphan de La Faverie, which emphasizes a streamlined brand portfolio and investment in higher-growth potential brands [6][10]. - The brands targeted for sale are positioned in the mid-market segment, which contrasts with Estée Lauder's current focus on high-growth luxury beauty brands that contribute over 70% of its revenue [7][12]. - The cosmetic market has seen a decline in demand for color cosmetics, with Estée Lauder's makeup segment experiencing a 1% drop in Q1 of fiscal year 2026, while fragrance sales surged by 13% to $721 million (approximately 5.13 billion RMB) [8][12]. Group 3: Industry Trends - The trend of major beauty companies divesting underperforming brands is becoming common, as seen with Coty and Kenvue also evaluating their brand portfolios [15][18]. - This shift indicates a broader industry move from expansion to prioritizing profitability and focusing on core brands, reflecting the changing dynamics in the beauty market [18].

Core Insights - The cosmetics industry is experiencing a significant downturn, with many brands being sold or shut down rather than achieving sales success during promotional events [1][22] - Over 50 beauty brands have been categorized as "abandoned" this year, with notable examples including L'Oréal, Estée Lauder, and Unilever [1][5] - The trend indicates a shift from large-scale brand coverage to a focus on optimizing brand portfolios among international beauty giants [8][13] Brand Sales and Closures - International beauty giants have sold over 30 brands this year, including Unilever's sale of the high-end skincare brand CeraVe and Kering's sale of its beauty division to L'Oréal for €4 billion (approximately ¥331.96 billion) [3][5] - The majority of these "abandoned" brands were acquired at high valuations between 2014 and 2020, with some, like Avon, being sold for $3.7 billion (approximately ¥263.45 billion) after struggling to perform [6][7] - In 2025 alone, 16 international brands have been shut down due to operational difficulties and strategic misalignment, with L'Oréal closing three brands [14][18] Reasons for Brand Abandonment - The primary reasons for brand sales include the need for international beauty companies to streamline operations and focus on profitable segments, as seen with Unilever's efforts to make CeraVe profitable [7][18] - Many brands are facing challenges such as declining performance, increased marketing costs, and the inability to adapt to market demands, leading to closures [21][27] - The trend of brand closures is not limited to international brands; domestic brands are also facing similar pressures, with eight brands shutting down in 2025 due to strategic adjustments and profit pressures [23][26] Market Trends and Future Outlook - The industry is witnessing a shift towards strategic restructuring and value rediscovery rather than mere expansion, indicating a potential ongoing consolidation phase [13][32] - The focus is now on leveraging technology and innovation to create competitive advantages, with companies encouraged to find niche markets and enhance product offerings [31][32] - The ongoing challenges suggest that the beauty industry will continue to experience a wave of brand eliminations, with survival dependent on strategic adaptability and resource management [22][32]

Core Insights - Estée Lauder is considering selling its makeup brand Too Faced, although specific details have not been disclosed [2] Group 1: Company Performance - Too Faced was founded in 1998 and was acquired by Estée Lauder for $1.45 billion in 2016 [4] - The brand attempted to enter the Japanese market in 2019 and later expanded into the Asia-Pacific region, including launching a Tmall overseas flagship store in China in 2020 [4] - However, Too Faced announced the closure of its only official flagship store in China in August 2022, effectively exiting the Chinese market [4] - Estée Lauder's makeup business has been underperforming, with a reported net sales of $4.205 billion for the fourth quarter and full year of fiscal 2025, a decrease of 6% year-over-year [4] - The operating loss for the makeup segment was $441 million, influenced by declining sales in Too Faced's lip and eye product categories [4] Group 2: Estée Lauder's Financial Challenges - Estée Lauder has faced declining revenue and net profit for two consecutive fiscal years starting from fiscal 2023 [5] - In fiscal 2025, the company reported net sales of $14.326 billion, an 8% year-over-year decline, and a net loss of $1.133 billion, compared to a profit of $390 million the previous year [5] - In response to these challenges, Estée Lauder announced operational changes in February, which include restructuring its brand portfolio and streamlining its organizational structure [5]

Core Viewpoint - Estée Lauder is facing significant challenges in its recovery path, with a decline in net sales and operating income amid economic downturns and geopolitical factors [1][3]. Financial Performance - For the fiscal year 2025, Estée Lauder reported a net sales decline of 8% year-over-year, totaling $14.33 billion (approximately ¥1028.01 billion) [1][2]. - The company's gross profit decreased by 5% to $10.60 billion, with a gross margin of 74.0% [2]. - Operating income turned into a loss of $785 million, marking a significant decline from a profit of $970 million in the previous year [2][6]. - The diluted net loss per share was $3.15, compared to earnings of $1.08 per share in the prior year [2]. Business Segment Performance - The only category to show growth was the fragrance segment, which remained flat with a slight increase, while skincare, makeup, and hair care categories experienced declines of 12%, 6%, and 10% respectively [4][6]. - The skincare segment's decline was attributed to decreased sales of brands like Estée Lauder and La Mer, alongside a drop in Asian travel retail sales [7][11]. - The makeup segment's downturn was primarily due to poor performance from brands like M·A·C and Too Faced [7][8]. Regional Performance - All regions reported declines in net sales, with the EMEA region experiencing the largest drop of 12%, followed by Asia/Pacific at 7% and the Americas at 4% [10][11]. - In mainland China, net sales fell by 6%, influenced by a challenging retail environment and low consumer sentiment [11][14]. Strategic Initiatives - Estée Lauder is undergoing a restructuring plan (PRGP) aimed at restoring profitability, which has already led to over 3,200 job cuts, with projections of total cuts reaching between 5,800 to 7,000 positions [19][22]. - The company anticipates that the restructuring will incur pre-tax costs between $1.6 billion to $3.3 billion [19]. Future Outlook - Despite current challenges, Estée Lauder's management expressed confidence in achieving organic sales growth in fiscal year 2026 and aims to rebuild operational profitability [3][22]. - The company plans to report its financials based on a new geographical structure starting Q1 of fiscal year 2026, which will include China as a separate reporting region [11][19].

Core Viewpoint - Estée Lauder is facing significant challenges in its makeup business, prompting management changes and strategic adjustments to revitalize performance and drive growth [2][3]. Group 1: Management Changes - Estée Lauder appointed Sara Staniford as Vice President and General Manager for its three major makeup brands—MAC Cosmetics, Bobbi Brown, and Too Faced in the UK and Ireland [2]. - The company also recently appointed Lisa Sequino to lead the makeup division, indicating a focus on strengthening management to address declining sales [3]. Group 2: Financial Performance - In Q3 of fiscal year 2025, Estée Lauder's makeup revenue decreased by 9% year-over-year, with operating profit dropping by 79% [2]. - Overall, Estée Lauder's net sales for Q3 were $3.55 billion, a 10% decline compared to the previous year, and net profit fell by over 50% [3]. - For fiscal year 2024, net sales were $15.61 billion, down 2%, with net profit decreasing by 61% [3]. Group 3: Strategic Initiatives - Estée Lauder is implementing a major transformation strategy called "Beauty Reimagined," which reorganizes its business into eight categories with dedicated management [3]. - The company aims to enhance innovation in makeup and seek new growth opportunities through these management changes [3]. Group 4: Market Challenges - The global consumer demand is growing slowly, and the rise of domestic brands in China poses additional challenges for international companies like Estée Lauder [4]. - The company is attempting to strengthen its professional teams and enhance brand recognition to attract both returning and new customers [4].