Jan 7, 2026

Hi, and welcome back to Line Sheet. Rachel “Rachel@puck.news” Strugatz is here (praise be) with the story of the beauty brand we’re all going to be talking about in 2026. She also explains the logic around E.L.C.’s decision to off-load some “underperforming” brands, and scoops Julia Fox’s latest, and perhaps most unexpected, endorsement deal.

Meanwhile, I’ve got an update on the Saks Global sitch, details about the relaunch of the Italian knitwear label Malo, scenes from Bernard Arnault’s Yale Legend in Leadership Award ceremony, and more. Also, I’m taking noms for the new GQ head of editorial content gig. Sorry I missed Nick Haramis yesterday, but right now it seems like a race between Sam Hine and Adam Baidawi. We can have a little fun with this, though, so hit me up. Also mentioned in this issue: Sacheu, Sarah Cheung, Wonderskin, Sephora, Billie Eilish, Ulta Beauty, TikTok, Too Faced, Jonny Lu, Saks Global, Chanel, Michelle Kessler-Sanders, Malo, Anna Wintour, Michael Burke, Ivanka Trump, and many more…

Six Things You Should Know…

Rachel Strugatz

The E.L.C. sell-off: The Estée Lauder Companies will finally be off-loading a handful of their “underperforming” brands in a package deal, according to Priya Rao at BoF. Too Faced, Smashbox, and Dr. Jart, which are all in varying states of distress, are valued “in the low nine figures.” Too Faced is actually a pretty decent business that still does hundreds of millions in sales, although I have no idea how much the brand is losing. (It must be a lot.) Smashbox seems beyond saving, as does Dr. Jart—an early K-beauty player––but I suspect that any future buyer will focus its energies on Too Faced.
Julia Fox for David: David, the maker of protein bars in gold wrappers that launched to enormous hype last year, has apparently tapped Julia Fox to be its first celebrity face. Fox will appear in a campaign for the new “Bronze bar,” which has less protein than its predecessor (20 grams per bar, down from the Gold bar’s 28 grams) and is being marketed as more “femme coded,” pleasurable, etcetera. I heard the campaign is centered on Fox’s “celibacy.”

A MESSAGE FROM OUR SPONSOR

The faceless Face: Yesterday, I noted that Matthew Whitehouse, the editor-in-chief of The Face, was leaving the magazine just as Jonny Lu was joining as creative director. I thought the announcement was a little weird, but The Face is owned by a weird little media company called Wasted Talent, which also owns Mixmag and another magazine you have never heard of. At one point a while back, I was told that Sara Moonves & Co. were looking to acquire The Face—one-third of the triumvirate of indie mags, alongside Dazed & Confused and i-D, that have shaped London fashion. Obviously, that never happened. Anyway, I assume an E.I.C. announcement is coming soon? Oddly, before his departure, there was a feeling that Whitehouse was gaining ground on his two main competitors. What’s the real story? Call me!
A requisite Saks Global update: Yesterday, Chanel closed its stores in multiple Neiman Marcus locations—a possibly ominous and foreboding sign as everyone waits to see if, or when, Saks Global files for Chapter 11 bankruptcy protection. Reps for Chanel and Saks Global did not comment, but a source close to Saks noted that there are still 23 Chanel stores open across the portfolio, and changes happen all the time, regardless of the circumstances.Of course, any number of outcomes are still on the table as Saks takes advantage of the 30-day grace period that began when it missed its big interest payment, on December 30, to weigh its options. “The silence has been deafening,” one vendor told me Wednesday. This person, who said they are owed millions of dollars, wondered if Saks was having trouble securing the D.I.P. (debtor in possession) financing it presumably needs to continue operating.And he’s not the only one. “I’m certain that the negotiations going on now between Saks and its various partners and lenders are complicated and delicate,” Gary Wassner, the C.E.O. of factoring firm Hilldun, wrote to its clients on Tuesday. “I understand why they cannot reveal these confidential negotiations to the press or the trade, or to us. I am also certain that if they don’t come to a resolution soon, their chances of recovering intact become more challenging daily. Without new inventory, the shelves will be depleted of product. I would welcome even a more general insight into the options they are considering. But having them share that with me is unlikely at this time.” Many vendors—and bankruptcy lawyers who want to represent the vendors—predict that Saks Global will file for Chapter 11 very soon for the reason Wassner suggests: Otherwise, there will be no Spring collections in the stores. (Saks Global stopped paying Hilldun on December 19, and Wassner has advised his brands not to ship to Saks.) Many brands have moved, or are contemplating moving, the inventory that was going to be sent to Saks Global to other retailers. Rent the Runway has also volunteered that they are able to take excess inventory. Is there a chance this will become a Chapter 7 liquidation? Anything is possible, but it’s in the best interest of almost everyone involved for that not to happen. (Disclosure: Saks sued Puck over our coverage of its financial conditions.)
Remember, knitwear sells: Michelle Kessler-Sanders, the American fashion executive who decamped to Milan last year to run the Italian knitwear label Malo, is in the midst of relaunching the brand in the U.S., where it’s been dormant for years. The first capsule hit stores in November, and Kessler-Sanders, best known for running the great Calvin Klein 205W39NYC experiment, is planning a big push for Fall 2026—enlisting a comms team and rolling out a seasonal archival collection called Origins.I got a peek at the Pre-Fall and Fall lookbooks for men and women, and was impressed with the styles—fashion-conscious without being fashion-y, much like Kessler-Sanders herself. It also occurred to me that Malo could have a real opportunity amid the Saks Global drama. The brand, which tech entrepreneur David Glickman bought out of bankruptcy in 2024, already has quite a wide distribution in Europe. Whatever happens at Saks, they are going to need newness to fill the stores, and brands starting from ground zero, like Malo, may be best positioned to fill the void.

A MESSAGE FROM OUR SPONSOR

I watched the Yale tribute to Bernard Arnault so you didn’t have to: I wasn’t always the best student, but watching last month’s homage to Arnault, who received the Yale Legend in Leadership Award in New York, felt like the ultimate homework assignment. Arnault was beamed in from Paris, and top LVMH Americas executive Michael Burke accepted the award on his behalf from a triumvirate of Anna Wintour, Ivanka Trump, and Blackstone C.E.O. Steve Schwarzman.To be honest, it was all a little bit weird. But I guess that’s to be expected from such a presentation. Wintour noted that Arnault almost always ignores her designer-appointment recommendations, and mentioned that people in China sometimes ask him to bless their babies for good luck. She also praised the Arnault children and suggested they all love those famous Saturday store visits as much as he does. Schwarzman, of course, brought up École Polytechnique. Ivanka also mentioned the shop visits. I was told Mickey Drexler was supposed to speak, but that didn’t end up happening. I’m sure he would have also mentioned the shop visits.In his own address, Arnault “acknowledged” the Trump family, saying he values the “importance President Trump places on loyalty, commitment, and family, which resonates strongly with my own life and work.” The most interesting part, though, was when he answered some questions from CNBC’s Sara Eisen. “I don’t like, so much, the word ‘luxury’—maybe it will seem strange to you,” he said, exhibiting his marketing prowess. “In the word, you have something like ‘show-off’—not real roots.” When pressed on succession, he said that he plans to stay at LVMH for another 10 years.

And now, here’s Rachel…

K-Beauty Demon Hunters

Sacheu’s viral “peel-off” lip liner has been a rare category success at Ulta: Billie Eilish is posting about the product, the brand is profitable, and bankers are circling. But for an exit to actually happen, does the brand need to evolve beyond its made-for-TikTok vibe?

Rachel Strugatz

I’m sure most of you have yet to use “peel-off” lip color or liner, but you’ve probably seen the TikToks. People paint their lips with a generous coat of what looks like red wine or cobalt blue lacquer, wait anywhere from 30 seconds to 20 minutes, and peel it off, leaving a surprisingly wearable lip stain. Sure, it all seems gimmicky, but the stuff works. The K-beauty concept dates back to the mid-2010s, but two U.S.-based brands are responsible for its current popularity: Sacheu and Wonderskin, the leading players in a rising subcategory within the multibillion-dollar lip color sector.

Sacheu seems to be the one to watch, despite Wonderskin’s strong Amazon presence, recent Sephora launch, and 30-second application time. In late 2024, Billie Eilish blessed Sacheu with an unpaid TikTok endorsement, which has since racked up close to 160 million views. Perhaps more importantly, the product is about half the price of Wonderskin (the $14 peel-off lip stain drives the vast majority of the business), giving it an edge among younger consumers. The brand also recently bulked up its C-suite with C.M.O. Michelle Miller and C.F.O. Connie Kim, both of whom will work alongside Sacheu’s founder—the influencer Sarah Cheung—and C.E.O. Quinn Roukema. A person close to Sacheu told me that the company is profitable and on track to reach about $110 million in revenue this year, up from about $85 million in 2025, through a combination of sales at Ulta Beauty, Amazon, and TikTok Shop, where the brand has been a top seller in its category for years. “They are probably the first example that I’ve seen of a TikTok brand becoming omni-channel,” said a person with knowledge of Sacheu’s business. “We have reason to be skeptical of TikTok brands, and Sacheu is a nice proof point that that’s not always the case.”

Meanwhile, multiple insiders have told me that the brand is in the final stages of selecting a banker. It’s probably too early for a big exit to a strategic acquirer, given Sacheu’s reliance on a single product, and because anything perceived as a trend usually makes potential acquirers skittish. But Sacheu clearly has reached the level of attention and scale where “things start to happen,” as an informed banker recently told me. It seems like the right time to find a deep-pocketed private equity partner—or at least get acquainted with the strategics and P.E. shops—since a growth round or liquidity event in the nearish future is probably inevitable.

The Ulta Surprise

Both Sacheu and Wonderskin have enjoyed long-term viral status, an anomaly amid the fickle consumer trend cycle. Perhaps that’s because these products deliver on their promise of “longwear,” transfer-free lip color—a longtime moving target in the lip category. According to Spate data I recently reviewed, peel-off lip stains were “one of the fastest-rising makeup formats of 2025,” with consumer interest jumping 120 percent year over year due to people gravitating toward “high-payoff, low-effort transformations.”

Some of this success stems from smart marketing. While other recent, viral lip products—Rhode’s Peptide Lip Treatments, Summer Fridays’ Lip Butters—have leaned on brand power, celebrity partnerships, and influencer founders to move product, Sacheu and Wonderskin are selling innovation and form factor. In the process, they’ve mainstreamed a new way to apply lip stains. It seems likely that we’ll begin to see legacy businesses and established startups introduce similar peel-off formulas, and further innovations from bigger companies with access to massive R&D teams and budgets. Already, Wonderskin has an eyebrow product that employs the same transfer-proof, “liquid blading” technology as the lip stain, and I heard Sacheu is working on creating additional peel-off products. (Last year, Wonderskin raised a $50 million Series A from Insight Partners, which has invested in Quince.) But Sacheu also pulled off something few others have managed: Its recent makeup launch at Ulta was a “crazy success,” according to an insider who noted that the brand is currently the retailer’s number one lip liner. It’s a rare category win for Ulta, given that Sephora typically has the market cornered on viral makeup, skincare, and fragrance. It could be the beginning of a trend, now that Ulta has put Jessica Phillips, a talented merchant and brand recruiter, in charge of its global merchandising strategy. Yes, a lot has to happen for Sacheu to see the big exit that Cheung and Roukema are presumably hoping for. But if the peel-off innovation can be extended to other product lines, like eyeliner or eye shadow, they may have a real shot at owning a new category.

What We’re Reading… and Looking At…

Alexandra Winokur, Dior’s U.S. president, is exiting the business. A rep for Dior did not respond to a request for comment. More tomorrow! [Me]

WSJ has hired Sarah Schmidt, GQ’s super-managing-editor-type, as director of editorial operations, filling the spot left by Lenora Jane Estes when she quit, in November. Schmidt was once the managing editor at WSJ and has a great reputation. [Inbox] J.Crew’s après-ski collection has no business being this cute. [GQ] The new Prada campaign is super-sharp. I love it. [Instagram] Swap, a company that helps fashion brands with everything from returns to tariff planning, has raised $100 million in a Series C led by DST Global and Iconiq, the investment firm behind Quince and Oura. The money will be used to enter new regions and add additional services, like digital payments. Remember when companies used to try to do all this stuff themselves? [Inbox] I’m not sure another brand could garner as much—or any—press on a website redesign. [Hermès]

Until tomorrow, Lauren

P.S.: We use affiliate links because we are a business. We may make a couple bucks off them.

Puck fashion correspondent Lauren Sherman and a rotating cast of industry insiders take you deep behind the scenes of this multitrillion-dollar biz, from creative director switcheroos to M&A drama, D.T.C. downfalls, and magazine mishaps. Fashion People is an extension of Line Sheet, Lauren’s private email for Puck, where she tracks what’s happening beyond the press releases in fashion, beauty, and media. New episodes publish every Tuesday and Friday.

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