Wall Street Journal reports that the beauty conglomerate is in talks with the Los Angeles-based luxury fashion brand. The potential deal would mark a change in strategy for the conglomerate, which typically acquires beauty brands solely.
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Developed in collaboration with the company. However, recent acquisitions by Estée Lauder have yielded mixed results. The brand faces less risk by acquiring a prestigious brand like Tom Ford, which has experienced double-digit sales growth post-pandemic than it does launching a startup. Moreover, Tom Ford faces a smoother transition by selling his company to a longtime partner.
In the recent third quarter, Tom Ford Beauty’s sales doubly increased. This growth was driven by the introduction of new fragrances like Rose D’Amalfi and “hero franchises” like Oud Wood and Ombre Leather. Estée Lauder, on the other hand, already owns Clinique, Jo Malone, and Aveda, and is rapidly expanding its prestige skincare sector.
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While Tom Ford Beauty is primarily a premium fragrance company, it also sells skincare, men’s grooming items, and colour cosmetics. In 2019, the cosmetics giant purchased the Korean skincare company Dr Jart and, in 2021, paid 1 billion USD for a majority stake in the Canadian beauty company Deciem. The potential purchase of Tom Ford would be Estée Lauder’s largest acquisition to date.