Estée Lauder pop-up store inside Daimaru store on Nanjing Road in Shanghai, China, on August 6, 2021.
Cost Photo | Future Publishing | Getty Images
Estée Lauder Companies On Monday, it announced it was in talks with a Spanish beauty group. puig There is a possibility that the two companies will merge.
Estée Lauder said in a statement that “no final decisions have been made and no agreement has been reached.”
The US beauty company’s shares fell nearly 8% on the news, which was first reported by the Financial Times. Puig stock rose about 3%.
Puig owns major beauty brands including Charlotte Tilbury, Jean Paul Gaultier and Rabanne. The companies did not disclose financial details of the potential deal.
Estée Lauder is struggling amid continuing headwinds from tariffs and restructuring as it implements its Beauty Reimagined turnaround plan to reinvigorate its business. In its second-quarter earnings call last month, the beauty retailer said it expected its full-year profitability to take a $100 million hit from the tariffs.
Estée Lauder’s stock price has fallen about 25% this year.
