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Low-Cost Cosmetics: Kohl's May Start Selling Estee Lauder Makeup
Aired October 28, 2003 - 06:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Time for a little 'Business Buzz' now. Estee Lauder may be coming to a discount department store near you, but you won't find Clinique or MAC cosmetics at the counter.
Carrie Lee reports from the Nasdaq market site.
Scary that I know the names of all those lines.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: We all do, Heidi. And Estee Lauder is joining up with Kohl's, the discount department store chain, to start selling cosmetics in a counter type of format. Now "The Wall Street Journal" reporting this currently. We're expecting this deal to be officially announced today.
Apparently, Estee Lauder doesn't want to jeopardize its existing brands, though, or its relationships with upscale department stores by selling prestige brands such as Clinique and MAC calls (ph). Rather, Estee Lauder is going to create a new company division called Beauty Bank to develop brands exclusively for Kohl's.
Now Kohl's says it's going to start selling these cosmetics in 250 Kohl's stores next fall and then all of its stores by fall of 2005. So a new area here for Estee Lauder as well as for Kohl's. Even though Kohl's is a discounter, it does offer a pretty high growth rate. They have about 542 stores in 36 states and they plan to open 95 new stores next year. So a good growth with opportunity, potentially, for Estee Lauder.
Taking a look at stocks this morning, we are looking at a potentially higher open right now. One big deal to talk about, RJ Reynolds buying the U.S. branch of British American Tobacco for about $2.6 billion in stock. So the latest merger to hit the Street this week. RJ Reynolds shares up about 9 percent in the after-hours market.
Futures look good overall, as I said. A lot of people, Heidi, paying attention to the Federal Reserve today announcing the latest decision on whether or not to change the interest rate scenario. The Street widely looking, though, for the Fed to leave rates unchanged. We'll see what Alan Greenspan and company, though, have to say about business conditions and the economy going forward.
Back to you.
COLLINS: We certainly will. Maybe we should check in with him about the makeup deal, too. I'm sure he would be concerned. LEE: See what he says about the growth potential there, right?
COLLINS: Right. Carrie, thanks so much this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Makeup>
Aired October 28, 2003 - 06:17 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Time for a little 'Business Buzz' now. Estee Lauder may be coming to a discount department store near you, but you won't find Clinique or MAC cosmetics at the counter.
Carrie Lee reports from the Nasdaq market site.
Scary that I know the names of all those lines.
CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: We all do, Heidi. And Estee Lauder is joining up with Kohl's, the discount department store chain, to start selling cosmetics in a counter type of format. Now "The Wall Street Journal" reporting this currently. We're expecting this deal to be officially announced today.
Apparently, Estee Lauder doesn't want to jeopardize its existing brands, though, or its relationships with upscale department stores by selling prestige brands such as Clinique and MAC calls (ph). Rather, Estee Lauder is going to create a new company division called Beauty Bank to develop brands exclusively for Kohl's.
Now Kohl's says it's going to start selling these cosmetics in 250 Kohl's stores next fall and then all of its stores by fall of 2005. So a new area here for Estee Lauder as well as for Kohl's. Even though Kohl's is a discounter, it does offer a pretty high growth rate. They have about 542 stores in 36 states and they plan to open 95 new stores next year. So a good growth with opportunity, potentially, for Estee Lauder.
Taking a look at stocks this morning, we are looking at a potentially higher open right now. One big deal to talk about, RJ Reynolds buying the U.S. branch of British American Tobacco for about $2.6 billion in stock. So the latest merger to hit the Street this week. RJ Reynolds shares up about 9 percent in the after-hours market.
Futures look good overall, as I said. A lot of people, Heidi, paying attention to the Federal Reserve today announcing the latest decision on whether or not to change the interest rate scenario. The Street widely looking, though, for the Fed to leave rates unchanged. We'll see what Alan Greenspan and company, though, have to say about business conditions and the economy going forward.
Back to you.
COLLINS: We certainly will. Maybe we should check in with him about the makeup deal, too. I'm sure he would be concerned. LEE: See what he says about the growth potential there, right?
COLLINS: Right. Carrie, thanks so much this morning.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Makeup>
