Fashion designer Tom Ford is leaving the fashion world to focus on movies and his production company, leading to management changes at Tom Ford Fashion. Estée Lauder bought the brand for $2.25 billion in 2021 and the cosmetics division grew by 25%.
Tom Ford has now said goodbye to the catwalk. The famous fashion designer is retiring from the fashion scene to focus on his second passion, film, and his production company, Fade to Black. This decision has led to significant changes at Tom Ford Fashion, with the appointment of Peter Hawkings as artistic director and Guillaume Jesel as president and CEO.
Jesel previously assumed the position of director of Tom Ford Beauty, the label's cosmetics division, which has seen strong growth in recent months. Hawkings began his career with Tom Ford 25 years ago, when the latter was heading the Gucci men's collections. He then followed the American designer and worked with him on the creation of his own brand, where he directed the men's collections.
Estée Lauder Companies (ELC) Inc. acquired the Tom Ford label for $2.25 billion last fall, eliminating competitor Kering who was also interested. ELC announced at the same time that Ermenegildo Zegna had appointed a new CEO for Tom Ford Fashion. The name of the latter should be revealed in the coming months, and his functions should be confirmed and effective in the third quarter of 2023.
Beauty giant, Estée Lauder is making its first major move into the fashion industry with the acquisition of Tom Ford. Since 2006, the group has successfully enhanced and boosted the Tom Ford Beauty brand, which promises good results for Tom Ford's future. The brand's cosmetics division has grown by 25% thanks to sales of fragrances such as Black Orchid and Tuscan Leather.
In 2021, Tom Ford posted a profit of $96 million on sales of $1.7 billion. In the purchase of Estée Lauder's share, the American cosmetics manufacturing group negotiated nearly $2.3 billion and $300 million in deferred payments from July 2025. In addition, Estée Lauder spent $250 million to acquire Marcolin, the Italian eyewear manufacturer that holds the production license for Tom Ford's eyewear collections. These investments should ensure a bright future for the American brand and its collections.
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