Estee Lauder in talks to buy TF

jkonick

Basenotes Dependent
Feb 16, 2019

This detail caught my attention:

"Tom Ford has a growing cosmetics line, and people familiar with the potential deal told WSJ that the company could potentially be interested in licensing the Tom Ford clothing lines elsewhere."

Will we be seeing some kind of Tom Ford x [Cheapo Brand] fragrances?
 

cacio

Basenotes Plus
Basenotes Plus
Nov 5, 2010
I saw an article on this on the WSJ. The article says that Estee Lauder has a licensing deal, but they don't own the brand (ie I assume that this means they produce the beauty products, but don't have control on the brand). The WSJ floated a possible number of about $3bn, which seems like a lot (this would be for the brand as a whole, but most of the profits, I assume, come from beauty). They didn't discuss perfumes vs makeup, but in recent years it's the makeup industry that has grown.

cacio
 
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Brooks Otterlake

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Basenotes Plus
Feb 12, 2019
I saw an article on this on the WSJ. The article says that Estee Lauder has a licensing deal, but they don't own the brand (ie I assume that this means they produce the beauty products, but don't have control on the brand). The WSJ floated a possible number of about $3bn, which seems like a lot (this would be for the brand as a whole, but most of the profits, I assume, come from beauty). They didn't discuss perfumes vs makeup, but in recent years it's the makeup industry that has grown.

cacio
Yes, the WSJ article goes into it in better detail.

We know Tom Ford is looking to sell his entire brand (not just cosmetics, but all lines), as reported by Bloomberg.

Given that Estee Lauder has been such a significant partner, it makes sense that they'd move from licencee to full-on owner of the brand. They have a lot of skin in the game.
 
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Oct 7, 2021
Welp...i will stick to Chanel, Hermes and Guerlain. TF is going down the drain, which is really sad. constantly raising prices and discontinuing amazing stuff.
 

maksidrom

Basenotes Dependent
Dec 30, 2003
Obviously ELC is buying TF for the "beauty" part of it, but I find particularly interesting the little blurb that should the deal go through ELC could license off the clothing business. Kinda reminds me of tech companies buying manufacturers for IP and patents and then licensing the rest off.
 

cacio

Basenotes Plus
Basenotes Plus
Nov 5, 2010
The split beauty/fashion presumably reflects the fact that for TF beauty is the source of profits. I don't have direct information, but I have the impression that the clothing and accessories side didn't develop much-it's just not grown as much as one might have expected. but perhaps they still need the fashion part to sustain the name and the prices on the cosmetic side.

EL has been buying several makeup brands-the article cited things like too face and the like. A few years back there were talks about buying Charlotte Tilbury, reportedly they gave up when the asked price was >$1b.

cacio
 

Brooks Otterlake

Basenotes Plus
Basenotes Plus
Feb 12, 2019
Obviously ELC is buying TF for the "beauty" part of it, but I find particularly interesting the little blurb that should the deal go through ELC could license off the clothing business. Kinda reminds me of tech companies buying manufacturers for IP and patents and then licensing the rest off.
Tom Ford's suits are already made by Ermenegildo Zegna (with materials/patterns exclusive to TF), so it's possible you'd see Ermenegildo Zegna continue to run that side of things.
 
Aug 1, 2022
I doubt this will be good for the (already declining?) quality of Tom Ford fragrance releases, but after several years of lackluster releases, discontinuing all of their most interesting fragrances, and their annual -including pre-pandemic- price hikes, I've lost almost all the interest I had in TF anyway. Though I only started my fragrance journey a few years ago, it feels like I came in at the very tail end of a unique and exciting moment in their history, just in time to witness "the end of an era", as it were. But with all this, it feels like it's just time to let TF go and branch out to other more daring and diverse creators who put a bit more love into what they create, and whose culture implies less contempt for the people who support them by purchasing their products.
 

GoldWineMemories

Basenotes Dependent
Nov 22, 2019
I think it's quite clear that after the death of his husband that Tom Ford is no longer the creative director behind the Tom Ford scents. Compare Noir de Noir, Tuscan Leather, and Tobacco Vanille to Lost Cherry, Bitter Peach, and Tuberose Nue... Don't really care where the brand goes from here.
 

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