Estée Lauder Companies (ELC) is reportedly still in the running to acquire Tom Ford.
Last week rumours emerged that Kering was in advanced discussions to acquire the luxury fashion brand, allegedly pulling ahead of ELC.
Sources claim ELC will submit a formal bid to purchase the business this week, WWD reported.
The potentially US$3bn deal would be a departure from ELC’s focus on pure beauty, marking its first foray into the world of fashion.
ELC’s desire to purchase Tom Ford has not been deterred by its rocky start to the 2023 financial year.
The business saw an 11% slump in Q1 sales after Covid restrictions in China “presented a greater challenge” than it had originally anticipated.
Net earnings also declined to US$489m, down from $692m from the same period last year, which were “unfavourably” impacted by a stronger US dollar in relation to other currencies.
Tom Ford was placed on the market in 2022, with investment banking company Goldman Sachs being brought on at the time to handle the sale of the company.
Cosmetics Business has contacted ELC for comment.