The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
PARIS, France — French luxury goods and cosmetics company L’Oréal has started exclusive talks with Clarins Group about buying the Mugler and Azzaro brands, L’Oréal said on Tuesday.
"The perfume category is at the heart of our global strategy for growth at L'Oréal Luxe. In this context, we would be thrilled to welcome Mugler and Azzaro," said Cyril Chapuy, president of the L'Oréal Luxe division.
"These signatures, with a long history in fashion and olfaction, would perfectly complete our portfolio of brands," he added in a statement.
L'Oréal did not disclose financial details regarding the planned acquisitions in its statement about the talks.
ADVERTISEMENT
The Azzaro brand was founded by Loris Azzaro in the 1960s and Mugler was founded in the 1970s.
L'Oréal has been trying to revive its sluggish mass market division at a time when its higher-end products such as Lancôme or Kiehl's have been finding favour with shoppers seeking luxury anti-ageing treatments, for instance.
In April, L'Oréal reported an 11.4 percent rise in first-quarter group sales to 7.6 billion euros ($8.6 billion) driven by its more expensive brands.
By Sudip Kar-Gupta, editors: Dominique Vidalon and Jason Neely.
Shining light on the $12.3 billion SPF boom.
News of a potential exit has the beauty industry in shock and awe of the Selena Gomez-founded label, and wondering what its next move should be.
L'Oréal reported a 9.4 percent rise in first quarter sales on a like-for-like basis on Thursday, beating expectations and easing concerns about a slowdown in the two biggest beauty markets; the United States and China.
The founder, who was ousted and recently came back to the line as CEO, will regain control of the company.