Estée Lauder Companies announced a minority investment in XINÚ, a Mexican luxury fragrance brand founded in 2017, through its New Incubation Ventures (NIV) arm. The deal marks the company’s first investment in a Latin American brand and represents a strategic move to broaden its fragrance portfolio in a high‑growth region.
XINÚ was created by three founders—Verónica Peña, who steers the olfactory vision; Ignacio Cadena, who develops the aesthetic and concept design; and Héctor Esrawe, the industrial designer. The brand is known for its sustainable design ethos, storytelling, and high‑quality fragrance products that blend Mexican heritage with contemporary luxury.
The investment aligns with Estée Lauder’s “Beauty Reimagined” strategy, which seeks to expand consumer coverage, drive innovation, and invest in high‑growth channels. By partnering with XINÚ, Estée Lauder gains access to a brand that emphasizes sustainability and craftsmanship, creating potential synergies with its existing luxury fragrance labels such as Jo Malone, Le Labo, and Tom Ford. The move also positions the company to tap into Mexico’s growing luxury market and the broader Latin American region, where consumer demand for premium beauty products is accelerating.
Estée Lauder’s recent financial performance has been challenging, with net sales falling 10% to $3.6 billion in the third quarter of fiscal 2025 and a projected 8‑9% decline for the full year. The company’s “Beauty Reimagined” plan and Profit Recovery and Growth Program aim to restore sustainable sales growth and profitability through cost discipline and strategic investments. The XINÚ investment is part of this broader effort to diversify the brand portfolio and capture new growth opportunities amid a competitive and price‑sensitive market.
Market reaction to the announcement was muted, with no significant change in investor sentiment reported. The investment is viewed as a strategic step rather than a headline‑making event, reflecting Estée Lauder’s cautious approach to expanding its footprint in emerging markets while managing financial headwinds.
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