Estée Lauder Cos is reviewing its portfolio of beauty brands, people with knowledge of the matter said, as the cosmetics company transitions to new leadership and looks to boost its share price.
New York-based Estée Lauder is working with Evercore Inc. on the review, which could lead to the sale of some brands, according to the people, who asked not to be identified discussing confidential information.
Estée Lauder, whose brands include Clinique, Smashbox, Tom Ford and Aveda, has been losing market share on its home turf to rivals such as L’Oréal SA, as well as beauty upstarts that have been more nimble at navigating social media trends. Meanwhile, demand from China has been slow to rebound from the pandemic.
Shares in Estée Lauder rose as much as 4.7 percent in New York trading on Monday. The stock is still down almost 40 percent over the last 12 months, giving the company a market value of about $30 billion.
In October, Estée Lauder named Stéphane de La Faverie as chief executive officer, betting that the company veteran can execute a turnaround and improve share price performance. De La Faverie joined Estée Lauder in 2011 and for years led its namesake brand. Internally, he’s considered the driver behind the company’s strong growth in high-end fragrances such as Le Labo and Kilian Paris.
Deliberations are ongoing and there’s no certainty that they’ll result in any disposals by Estée Lauder, the people said. A representative for Estée Lauder declined to comment, while a spokesperson for Evercore didn’t immediately provide comment.
The Lauder family owns about 38 percent of Estée Lauder’s total common stock and about 86 percent of the voting power, according to the company’s website. William Lauder remains chair of the Estée Lauder board.
By Pamela Barbaglia and Crystal Tse
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