Tag: The Estee Lauder Companies

Must Read: Why Fashion Is Embracing Degrowth, The Tom Ford Acquisition Is All About Fragrance

Photo: Allison Dinner/Getty Images

These are the stories making headlines in fashion on Friday.

Why fashion is embracing degrowth
The term “degrowth,” according to economic anthropologist Jason Hickel, means “a planned reduction of energy and resource use designed to bring the economy back into balance with the living world in a way that reduces inequality and improves human well-being.” Brands such as Ralph Lauren are exploring what embracing degrowth could look like. Halide Alagöz, the chief product and sustainability officer at Ralph Lauren said, “We have seen our financials getting better although we produce less units compared to five years ago.” {The New York Times}

The Tom Ford acquisition is all about fragrance
The Estée Lauder Companies has successfully acquired Tom Ford for $2.3 billion, and it appears that the main focus of the deal had to do with fragrance. According to industry insiders, fragrance makes up about 50% of Tom Ford Beauty sales, with an unexpected increase during the pandemic. With the acquisition of the entire Tom Ford brand, Andrea Teixeria, lead analyst at J.P. Morgan, estimated the deal will save Estée Lauder between $60 million and $70 million in pre-tax annual royalties. {Glossy}

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Inside Burberry’s growth strategy
In an interview with Business of Fashion, Burberry‘s new CEO Jonathan Akeroyd outlined his growth strategy for the brand alongside its new designer Daniel Lee. Burberry hopes to lean into the brand’s British identity and grow revenues to $4.75 billion annually by the mid-term. “It’s not just about the magic touch, if you like, but the understanding of what the brand DNA is,” Akeroyd said. Using Lee’s expertise at making commercially successful accessories and ready-to-wear (see: Bottega Veneta), Akeroyd is prioritizing categories like handbags and knitwear. {Business of Fashion}

Great Jones x Lisa Says Gah

Photo: Courtesy of Great Jones

Great Jones and Lisa Says Gah launch collaborative collection
The Great Jones x Lisa Says Gah collection includes two new limited-edition Dutch ovens hand-printed with floral designs inspired by the 1960s. Alongside the Dutchess ($190) and the Dutch Baby ($150), the collection also includes an embroidered apron available in two colors ($98 each). You can shop the collection now at greatjonesgoods.com. {Fashionista inbox}

What Converse’s new sneaker silhouette says about women’s footwear
Converse‘s newest release, the Run Star Legacy CX, boasts more durability and versatility than its classic styles. The new look is a response to Converse’s female consumer needing a shoe that provides options. The brand’s Global Product Merchandising Director, Tamara Odom, said, “…this whole idea of ‘beauty is pain’ is just something that is now a thing of the past. We don’t want to be in pain anymore…we should be able to provide options for [our female consumer] to not have to sacrifice [beauty or comfort].” {Hypebae}

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Brooke Frischer

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November 18, 2022
Cosmetics Company Estée Lauder Is Set to Acquire Tom Ford [Updated]

Photo: Dimitrios Kambouris/Getty Images

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The Estée Lauder Companies Inc. is readying to announce its acquisition of the Tom Ford brand in a deal valued at $2.8 billion, Business of Fashion reports. An official statement is expected to come as soon as Tuesday.

This would be Estée Lauder’s biggest acquisition to date, and, notably, its first fashion brand. The company already owns Tom Ford Beauty, which it helped launch back in 2005, when the designer went off on his own and started his namesake company with Domenico De Sole. Ford expanded into ready-to-wear in 2010. With this latest acquisition, it will gain control of the brand’s apparel business as well, a first for the cosmetics company.

In early July, Bloomberg reported that Tom Ford, the brand, had brought on Goldman Sachs to advise on a potential sale that could value it at “several billion dollars,” and that would potentially “include an option that would give any new owner of Tom Ford the right to work with its founder after the sale.”

In August, The Estée Lauder Companies emerged as a potential buyer, the Wall Street Journal reported, with Dana Cimilluca, Cara Lombardo and Ben Dummett writing: “Estée Lauder is especially interested in the beauty business, with which it already has a longstanding licensing deal, and could potentially look to license the clothing lines elsewhere, the people familiar with the matter said.”

By November, Kering — i.e. Ford’s former employer — entered the race, per the Journal. But over the weekend, the Financial Times reported that Estée Lauder had beat out other interested parties and was preparing to share news of the deal, which includes Tom Ford’s debt.

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UPDATE: Nov. 15, 2022, 5:20 p.m. ET

Estée Lauder Companies Inc. has made it official, announcing it’s buying the Tom Ford brand and all its intellection property in a deal valued at $2.8 billion.

“Under the stewardship of ELC, the purchase of the Tom Ford brand and the extension of its current licensing partners will allow for continuity and the further evolution of the Tom Ford brand as one of the preeminent global luxury brands of the twenty-first century,” the company said, in a statement.

“I could not be happier with this acquisition, as The Estée Lauder Companies is the ideal home for the brand,” Tom Ford said, in a statement. “They have been an extraordinary partner from the first day of my creation of the company, and I am thrilled to see them become the luxury stewards in this next chapter of the Tom Ford brand.”

Ford, the man, will stay on — at least “through the end of calendar 2023,” per Estée Lauder. His longtime business partner, Domenico De Sole, “will stay on as a consultant until that same time.”

The deal also won’t affect Tom Ford’s two big licensing partners, Ermenegildo Zegna (for fashion, accessories and underwear) and Marcolin (for eyewear): Estée Lauder said these relationships will not only continue, but be “extended,” with Zegna “acquiring operations of the Tom Ford fashion business necessary to perform its obligations as licensee.”

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Fashionista

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November 15, 2022

Tag: The Estee Lauder Companies

Must Read: Why Fashion Is Embracing Degrowth, The Tom Ford Acquisition Is All About Fragrance

Cosmetics Company Estée Lauder Is Set to Acquire Tom Ford [Updated]