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A bidding war with Gucci owner, Kering, may be brewing, with a decision deadline looming.
November 4, 2022
By: TOM BRANNA
Editor
Estée Lauder Cos. is still in the running to acquire fashion house Tom Ford, according to reports. Kering, which already owns Gucci, is said to be in advanced talks for Ford, If ELC were to drive away with Ford, it would mark the beauty giant's entry into fashion. Earlier this year rumors swirled that ELC was interested in the fashion house. Lauder would be a newcomer to haute couture, but the company has had a licensing deal with Ford for years. In fact, earlier this week, ELC noted that Tom Ford Beauty Q1 fragrance net sales grew by strong double digits, driven by launches such as Noir Extreme Parfum and Ébène Fumé. On the downside, TFB's makeup sales were hurt by a decline in retail traffic and covid-19 related travel restrictions. On the flip side, if Kering is successful, it would mark the company's entry into beauty. In a call with analysts to discuss first half results, Group Managing Director Jean-François Palus observed, “Beauty is definitely an area where we could contemplate some initiatives in the future and all options are open.” Sales of prestige fragrance have surged post-pandemic.
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