THE WHAT? The Estée Lauder Companies has decided not to sell Too Faced, Smashbox and Dr.Jart after exploring strategic options for the brands, opting instead to restructure their operating models.
THE DETAILS According to an internal memo from Chief Executive Stéphane de La Faverie, the company concluded that each brand has distinct strengths, market positioning and growth opportunities that require tailored business models. Too Faced will relocate its headquarters from Los Angeles to New York and join the company’s makeup cluster alongside MAC and Bobbi Brown with a significantly streamlined team. Smashbox will remain in Los Angeles with a smaller organisation, while Dr.Jart will continue to operate from Korea. Origins will also move under Deciem to benefit from its digital-first operating model. The Estée Lauder Companies confirmed the contents of the internal document.
THE WHY? Rather than divesting the brands, the company believes a more agile, entrepreneurial operating structure will better position them to accelerate innovation, strengthen consumer connections and support long-term growth.
Source: WWD
