Too Faced, Smashbox and Dr. Jart+ are off the market and staying at parent company the Estée Lauder Cos.
While the Estée Lauder Cos. never formally admitted that the trio of brands were for sale, it did confirm that it had hired advisers to review the portfolio and multiple sources have said these three were on the market.
Now, however, the company is holding onto the brands in question and is implementing a number of strategies to drive up their respective values and also that of skin care brand Origins, according to an internal memo seen by WWD.
The Estée Lauder Cos. confirmed the information in the internal memo but declined to comment further.
“Over the past year, we shared that we engaged advisers to conduct a comprehensive review of our portfolio. Throughout that process, we evaluated a range of strategic options, both internal and external, for some of our brands. As we looked ahead, one thing became clear: our brands have different strengths, consumer positioning, competitive dynamics, and growth opportunities, requiring tailored business models to help them accelerate innovation, strengthen consumer connections, and unlock long-term growth,” said the Estée Lauder Cos. president and chief executive officer Stéphane de La Faverie in the memo. “By adopting the speed, agility, and entrepreneurial mindset of successful beauty indies, we are evolving how we operate.”
These strategies include Origins being placed under the management of Deciem, Too Faced being run out of New York under its makeup cluster versus California and Dr. Jart+ refocusing on innovation and targeted categories and geographies. WWD understands that there will be related job losses at all brands, but total numbers are unknown.
According to the memo, Too Faced will be heavily positioned toward Gen Z, while Origins will now have access to Deciem’s incubator model that has proved very successful for The Ordinary.
Dr. Jart+ will remain headquartered in Korea. “Operating with a leaner, more agile structure will enable the brand to innovate more quickly, respond faster to evolving consumer trends and compete more effectively,” the memo said.
Smashbox will remain in Los Angeles with a “significantly streamlined” team.
