Estee Lauder has been on a shopping spree for high end grooming brands in a bid to expand its luxury perfumes and skin care business. Its three acquisitions in the space of a month include perfume brands Le Labo and Editions de Parfums Frederic Malle, and the skin care brand Rodin olio lusso. Sales at big houses such as Estee Lauder and L’Oreal have been hit by competition from smaller niche brands, as consumers seek out more exclusive lines.  Speaking on the acquisition of Le Labo, Estee Lauder CEO Fabrizio Freda said it was the perfect complement' to its prestige brands which include Jo Malone, Bobbi Brown, MAC Cosmetics, La Mer, and Tom Ford.

Le Labo

Founded in 2006, Le Labo has stores in New York, London, Paris, Hong Kong, Tokyo and San Francisco, and its fans are described as “cultish”. Perfume brand Editions de Parfums Frederic Malle has a collection of fragrances designed by master perfumers, with price tags starting at $150.  Rodin olio lusso is an Italian luxury skin care oil brand created by New York stylist Linda Rodin.  The range includes skin care and perfumes, with a 1 fl oz face oil retailing at $170.

Strong dollar 

Ahead of the acquisitions, Estee Lauder cut its full year profit and sales growth forecast, citing the effects of a strong dollar, geopolitical tensions and soft retail environments in important markets like Hong Kong.  But the company has reported the strongest gains in the first quarter among its premium brands, with Crème de la Mer, Jo Malone and Tom Ford all achieving double-digit growth.