An Estée Lauder pop-up store is seen inside a Daimaru store on Nanjing Road in Shanghai, China, August 6, 2021.
Costofoto | Future publications | fake images
Estée Lauder Companies said Monday that it is in talks with a Spanish beauty group Puig to potentially merge the two companies.
“No final decision has been made and no agreement has been reached,” Estée Lauder said in a statement.
Shares in the American beauty company fell almost 8% following the news, which was first reported by the Financial Times. Puig shares rose about 3%.
Puig owns major beauty brands including Charlotte Tilbury, Jean Paul Gaultier and Rabanne. The companies did not disclose any financial details of the potential deal.
Estée Lauder has been struggling amid continued headwinds from tariffs and its restructuring as it implements its “Beauty Reimagined” recovery plan to revitalize the business. In its second-quarter earnings report last month, the beauty retailer said it expects a $100 million hit to its full-year profitability due to tariff impacts.
Estée Lauder shares have fallen about 25% this year.
