With its $1.2bn cash purchase of IT Cosmetics, L’Oreal S.A. picks up more than 300 “high performance” beauty products, including makeup and skin-care items, brushes and tools, which will be wrapped into its leading Luxe Division, according to a July 22 announcement. With distribution through home shopping portals including QVC and The Shopping Channel, as well as specialty stores ULTA and Sephora and the brand’s website, IT Cosmetics’ recorded $182m in sales during the 12-period ended June 2016, an increase of 56% compared with the prior year, L’Oreal says, characterizing IT as “one of the fastest-growing prestige beauty brands in the US.” The French beauty giant says IT will “perfectly complement” its existing brand portfolio “to satisfy the rising demand for makeup as well as hybrid skincare,” and will continue to operate out of its Jersey City, N.J. headquarters under the current leadership team. Luxe sales drove L’Oreal’s Q1 performance, increasing 4.4%, reported, to reach €1.75bn (Also see "L'Oreal Kicks Off FY 2016 With Consumer Biz Acceleration, NA Share Gains" - HBW Insight, 4 May, 2016.).
In Brief: L’Oreal Acquires IT Cosmetics, Provides Microbeads Update; More
L’Oreal adds IT Cosmetics to its thriving Luxe business for $1.2bn in cash. Unilever offers perspective on its Dollar Shave Club acquisition during its Q1 earnings call.
More from Business
The expansion of Ulta Beauty in Target stores are paused for now as Ulta Beauty Inc. and Target Corp. “lean into” the 610 stores already established and consider how to drive efficiencies and leverage learnings, says new President and CEO Kecia Steelman.
Swiss firm reports highest revenues in its history as restructure pays off for its pharma and cosmetics businesses in 2024.
The BBB National Programs, Inc. announces Phyllis Hurwitz Marcus, who served the FTC for nearly two decades, will take the reins of the National Advertising Division, replacing Laura Brett.
Kim Kardashian lifestyle company SKIMS buys back rights to SKKN by Kim from Coty, Inc., which had purchased a 20% interest in the brand in 2020 for $200m. Separately, NYX Professional Makeup partners with Warner Bros. to launch the “A Minecraft Movie” collection.
More from Beauty
Swiss firm reports highest revenues in its history as restructure pays off for its pharma and cosmetics businesses in 2024.
Fragrance Creators Association will push the Trump Administration to exclude from tariffs fragrance materials that cannot be produced or cultivated domestically, while both FCA and the Personal Care Products Council will continue to promote the economic benefits of their respective industries.
The BBB National Programs, Inc. announces Phyllis Hurwitz Marcus, who served the FTC for nearly two decades, will take the reins of the National Advertising Division, replacing Laura Brett.