Estée Lauder Purchasing Le Labo
Estée Lauder Cos. Inc. has signed a deal to purchase Le Labo, an indie fragrance brand. Cofounders Fabrice Penot and Eddie Roschi released a joint statement calling Lauder “the ideal home” for their brand. “The Estée Lauder Cos. not only understands and respects the core elements of our business, but also has the resources to help us continue to grow into a more fully expressed sensory lifestyle brand,” the statement reads. Le Labo generates an estimated $20 million to $30 million annually in retail sales. In addition to their signature fragrances, the brand also sells body-care products and candles. This is the first high-profile acquisition Lauder has made since acquiring Smashbox in 2010.
John Galliano Calling On Past Collaborators
John Galliano, Maison Martin Margiela’s new creative director, reportedly isn’t arriving solo at his new job. According to industry sources, he’s rounded up some former collaborators, including muse Vanessa Bellanger, designers Alexandre Rouxfrom and Jean-Yves Mustiere, and former chef d’atelier Rafaele Hardy. A Margiela spokesman declined to comment regarding specific collaborators, but said the design team is indeed a mix of current employees and new members.
Yikes: Reports of “Dark Clouds” Over the Luxury Market
The profitability of the luxury world is now in question, according to new reports. Brands and investors are growing very nervous about growth prospects, and are preparing for uncertainty in the marketplace. In addition to a slowdown in consumption, constant political unrest is occurring worldwide. Yesterday, Burberry warned of a “more difficult external environment” ahead, despite the company’s impressive first-half results for 2014. Mulberry is still struggling and admitted it was blindsided by a decrease in London tourist traffic. The company is currently also experiencing a decline in wholesale sales worldwide. Although LVMH Moët Hennessy Louis Vuitton is enjoying a recent profit gain, the luxury conglomerate has issued a statement mentioning “an uncertain economic and financial environment.”
Source: WWD, WSJ