An Estée Lauder pop-up retailer is seen inside a Daimaru retailer on Nanjing Highway in Shanghai, China, Aug. 6, 2021.
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Estée Lauder Corporations mentioned Monday that it’s in talks with Spanish magnificence group Puig to probably merge the 2 corporations.
“No remaining resolution has been made, and no settlement has been reached,” Estée Lauder mentioned in an announcement.
Shares of the U.S. magnificence firm have been down practically 8% following the information, which was first reported by the Monetary Occasions. 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 wonder retailer mentioned it is anticipating a $100 million hit to its full-year profitability as a consequence of tariff impacts.
Estée Lauder’s inventory has dropped roughly 25% this yr.
