Last November 2022, luxury beauty company Estée Lauder announced that it had agreed to buy fashion designer Tom Ford’s company for $2.3 billion. The deal that values Ford’s business at $2.8 billion will see the fashion mogul remain as creative director for another year to come, according to a statement.
The group now owns licenses and rights for the brand’s lines—men’s and women’s fashion, eyewear, and underwear too. That said, moving forward the latter will no longer have to pay any royalties to the former and allow the group to focus on growth. Based on the huge success of Estée Lauder Group’s luxury perfumes, it expects Tom Ford Beauty to generate $1 billion in revenue within two years.
