The news: Estée Lauder is seeking buyers for three of its brands, Too Faced, Smashbox, and Dr. Jart, per Business of Fashion.

• The three brands are being marketed as a package deal valued in the low nine figures.
• A sale would simplify the beauty conglomerate’s portfolio and free up resources for its core brands—or for strategic acquisitions.

The big picture: Estée Lauder’s portfolio refresh reflects the fast-changing nature of the beauty industry: All three brands it’s looking to offload were once hot, but sales have slowed as consumer tastes and needs shifted.

• On one hand, shedding those brands should free up capital that can be used to fund innovation across the rest of Estée Lauder’s business, a pressing need as the company tries to revive sluggish China sales and keep upstarts from stealing share.
• However, finding a buyer may prove difficult. Far more companies are currently trying to sell off assets than acquire them, and even fewer are likely to pursue three brands that will require investment and time to get back on track.

What this means: More companies are reevaluating their portfolios, particularly as economic uncertainty causes consumers to dial back discretionary spending and search for deals.

• Yum Brands is considering strategic options—including a sale—for Pizza Hut as the chain continues to lose market share in the US and elsewhere.
• Speculation is growing that Nike could sell Converse after the company reported a 44% decrease in brand demand creation (which includes marketing expenses) for its most recent quarter. That could suggest Nike wants to offload responsibility for the brand’s turnaround.
• Divestiture is rife throughout the CPG industry as Unilever, Procter & Gamble, Kimberly-Clark, and others focus on their top-performing brands and products.

With both the US and China facing challenging economic landscapes in 2026, divestiture will become a more attractive option for companies to reduce expenses and bolster their cash reserves. But finding buyers will be a challenge, particularly for smaller brands operating in competitive industries like beauty.

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