An Estée Lauder pop-up retailer is seen inside a Daimaru retailer on Nanjing Street in Shanghai, China, Aug. 6, 2021.
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Estée Lauder Corporations stated Monday that it’s in talks with Spanish magnificence group Puig to probably merge the 2 firms.
“No remaining resolution has been made, and no settlement has been reached,” Estée Lauder stated in an announcement.
Shares of the U.S. magnificence firm had been down almost 8% following the information, which was first reported by the Monetary Instances. Puig’s inventory rose roughly 3%.
Puig owns main magnificence manufacturers together with Charlotte Tilbury, Jean Paul Gaultier and Rabanne. The businesses didn’t disclose any monetary particulars of the potential deal.
Estée Lauder has been struggling amid ongoing headwinds from tariffs and its restructuring because it enacts its “Magnificence Reimagined” turnaround plan to revitalize the enterprise. In its second-quarter earnings report final month, the sweetness retailer stated it is anticipating a $100 million hit to its full-year profitability on account of tariff impacts.
Estée Lauder’s inventory has dropped roughly 25% this 12 months.