Estée Lauder retains Too Faced, Smashbox and Dr. Jart+ as restructuring continues

Estée Lauder Companies has chosen to retain Too Faced, Smashbox, and Dr. Jart+ after exploring a potential sale, although the brands will operate with significantly streamlined teams.

The decision was reported by The Business of Beauty after the publication reviewed an internal document written by Chief Executive Stéphane de La Faverie.

“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. By adopting the speed, agility and entrepreneurial mindset of successful beauty independents, we are evolving how we operate,” said de La Faverie in the note.

It was previously reported that final bids had been submitted and that potential deals could be completed within weeks. Estée Lauder declined to comment at the time.

At least one prospective buyer was reportedly interested in acquiring all three brands. Other bidders focused on either the makeup portfolio or Dr. Jart+, although no bidder identities or proposed valuations were disclosed.

Estée Lauder acquired Smashbox Beauty Cosmetics in 2010 and purchased Too Faced in 2016 for an estimated $1.45 billion. The company first invested in Dr. Jart+’s parent company, Have & Be, in 2015 before acquiring the remaining business in 2019.

The review is said to have formed part of a broader restructuring initiative led by de La Faverie. In February 2025, Estée Lauder introduced its Beauty Reimagined strategy, which aims to restore sustainable sales growth and improve profitability through changes to its operating model and market coverage.

The company’s fiscal 2025 results highlighted the scale of the challenges. Net sales declined 8% for the year ended 30 June 2025, while the reported operating margin fell from 6.2% to negative 5.5%. Estée Lauder also recorded $815 million in impairments related to goodwill and other intangible assets, along with $362 million in restructuring and other charges.

The disclosures included a $375 million impairment related to Dr. Jart+ and a $50 million impairment for Too Faced. The company attributed Dr. Jart+’s write-down to lower-than-expected performance in South Korea and mainland China, while Too Faced had underperformed internal expectations across key regions and channels.

More recently, Estée Lauder raised its full-year fiscal 2026 outlook for organic net sales and adjusted profitability, reflecting “strong” year-to-date results for the third quarter ended 31 March 2026.

The company also updated the cumulative cost of its multi-year restructuring programme last week to approximately $1.748 billion before tax, exceeding its previous estimate of $1.5 billion to $1.7 billion. The revised figure includes initiatives approved since the restructuring programme began and through 30 June 2026.

The increase reflects additional approved actions, including further workforce reductions, with cuts to point-of-sale demonstration roles among those announced.