Estée Lauder reportedly mulls sale of Smashbox, Too Faced and Dr. Jart+

Estée Lauder Companies (ELC) is reportedly considering the sale of Smashbox, Too Faced, and Dr. Jart+ as a package deal.

The combined price is estimated in the low nine figures (US$100 million to US$199.99 million), according to two sources speaking to The Business of Beauty. 

All three brands have been part of the beauty giant’s portfolio for years, being acquired during its major acquisition phase in the 2010s. 

However, time does not always fuel fiscal results. The rumoured sale is set against the financial backdrop of underperforming sales from all three brands. 

ELC’s makeup and skin care segments have overall faced declines, but Smashbox, Too Faced, and Dr. Jart+ have each experienced their own monetary shortcomings. 

Finacial falls

Smashbox has been part of ELC’s portfolio for over 15 years. However, it is a lower‑growth brand within its cosmetics segment and has been overshadowed by newcomers in the industry. The “underperforming” sales and shifting consumer trends have reportedly made these brands less core to the company’s future strategy.

Another 2010 star that has been burning out is the makeup brand Too Faced.  

ELC purchased Too Faced in 2016, which marked the conglomerate’s largest acquisition at the time. The makeup brand was bought for an estimated US$1.45 billion. 

When the acquisition was announced, ELC’s then CEO, Fabrizio Freda, called Too Faced “one of the most dynamic makeup brands in the world.” Smashbox’s future with Estée Lauder may be unclear. 

However, Lauder’s 2025 fiscal reports show impairment charges relating to Too Faced’s intangible assets and goodwill, reflecting “lower‑than‑expected results in key regions and channels.”

Too Faced and Dr Jart+ have taken impairment charges totalling approximately US$460 million.

ELC gained Dr. Jart+ in 2015 after getting a minority stake in Have & Be, its parent company. The entire company was acquired in 2019. The move was, and still is, Estée Lauder’s first acquisition of an Asia-based beauty brand.

Dr. Jart+ has helped bolster the company’s presence in the Korean skin care market, but the company may be assessing how the brand fits within its long-term growth strategy. The brand was reportedly expected to generate approximately US$150 million in 2025, below the US$500 million in net sales anticipated at the time of acquisition.

If finalized, the sale would be another move in ELC’s strategy to streamline its brand portfolio, following a decline in sales and job reductions last year. 

Last month, the cosmetics company’s restructuring program was announced to cost far more than the US$500–$700 million figure it first expected, with approved charges reaching US$1.14 billion. 

Additionally, following the death of Leonard Lauder, the Lauder family announced it would sell US$1 billion worth of shares in the company. The proceeds were said to be allocated to settle Lauder’s estate.

Personal Care Insights has reached out to Estée Lauder for comment.