This week in beauty Shiseido’s turnaround plan bears fruit while Chanel Beauty continues to experience strong growth.
SHISEIDO H1 26 SALES WERE FLAT BUT PROFIT SURGED 90%
Shiseido reported first-half net sales of ¥499.0 billion (€2.74 billion), effectively flat like-for-like (-0.2%), while core operating profit jumped 90% to ¥44.4 billion (€244 million) and margin expanded from 5.0% to 8.9%. China & Travel Retail remained flat but improved margin to 24.6%, while ELIXIR grew 7% and NARS 3%, though SHISEIDO fell 3% and ANESSA dropped 10%, as the company kept its FY2026 forecast of ¥69 billion (€380 million) in core operating profit.
BEIERSDORF’S BEAUTY SALES DOWN 4% ORGANICALLY IN H1 26
Beiersdorf reported first-half group sales of €4.952 billion, down 3.5% organically (-4.5% reported), with adjusted EBIT falling 8.1% to €768 million and margin dropping 60 basis points to 15.5%, as the Consumer division declined 4.0% organically driven by NIVEA’s 6.8% drop due to retail disputes and delayed sun season. Eucerin and Aquaphor partly offset the weakness with 7.8% organic growth, and La Prairie returned to growth in Q2, but the company cut its full-year outlook to a low-single-digit organic sales decline.
CHANEL BEAUTY REPORTS 8% SALES GROWTH IN H1 26
Chanel’s fragrance and beauty division delivered approximately 8% sales growth in the first half of 2026, contributing to the company’s wider double-digit revenue increase across all regions including the US, China and the Middle East. Beauty remains one of Chanel’s three core business pillars, accounting for around a quarter of group revenue, demonstrating the resilience of prestige beauty despite softer consumer sentiment in parts of the luxury sector.
KAO H1 26 LFL SALES UP +3.4% WITH BEAUTY & COSMETICS UP +4.7%
Kao Corporation reported first-half 2026 like-for-like sales growth of 3.4%, with the combined Health Beauty Care and Cosmetics businesses growing 4.7% LFL on a weighted average basis. Net sales rose 7.8% to ¥871.9 billion (€4.79 billion), operating income surged 38.5% to ¥95.8 billion (€526 million), and margin expanded to 11.0%. The Cosmetics Business delivered ¥131.0 billion (€720 million), up 10.5% (6.7% LFL) led by strong Curél and KATE performance, while Health Beauty Care posted ¥228.6 billion (€1.26 billion), up 8.1% (3.6% LFL) driven by Biore UV care. The company raised its full-year outlook to ¥1.8 trillion (€9.89 billion) in sales and ¥190 billion (€1.04 billion) in operating income.
KOSÉ H1 26 ORGANIC SALES FLAT BUT OPERATING PROFIT DOWN 41.5%
KOSÉ reported first-half 2026 net sales of ¥164.9 billion (€1.04 billion), up 2.7% year-on-year but only 0.2% excluding forex. Operating profit fell 41.5% to ¥6.6 billion (€41.8 million) due to lower earnings at ALBION and KOSÉ Cosmeport, despite higher KOSÉ results. The Cosmetics segment grew 4.2% to ¥133.3 billion (€844 million) driven by strong Tarte performance and DECORTÉ sales in China duty-free, while the Cosmetaries segment declined 3.4% to ¥30.2 billion (€191 million) on intense competition and higher marketing costs.
E.L.F. BEAUTY RAISES FY27 OUTLOOK AFTER 36% Q1 27 SALES GROWTH
e.l.f. Beauty reported Q1 27 (Q2 26 calendar) net sales of $479.4 million, up 36% year-on-year, marking its 30th consecutive quarter of growth, driven by strong performance across its portfolio including e.l.f. Cosmetics, Naturium and rhode. Following the results, the company raised its fiscal 2027 net sales growth forecast to 18-20%, up from its previous guidance of 12-14%, reflecting continued momentum from its multi-brand strategy and international expansion.
KENVUE Q2 26 SALES RISE 3%, SKIN HEALTH & BEAUTY GROWS 5.1%
Kenvue reported second-quarter net sales of $3.955 billion, up 3.0% (1.6% organic) with adjusted diluted EPS of $0.31, marking the third consecutive quarter of growth. Skin Health and Beauty delivered the strongest segment performance with sales of $1.113 billion, up 5.1% (3.7% organic) driven by favorable value realization of 2.7% and volume growth of 1.0%, with gains across every region led by Hair Care and Face Care and strong eCommerce momentum behind Neutrogena, which improved US household penetration for the third straight quarter.
HENKEL HAIRCARE BUSINESS GROWS 4.2% ORGANICALLY IN H1 26
Henkel’s Consumer Brands division reported first-half sales of €4,733 million, up 1.7% organically (3.8% reported decline due to the divestment of the retailer brands business in North America), with adjusted EBIT margin stable at 15.3%. The Hair business was the strongest performer with sales of €1,683 million, up 4.2% organically and 3.8% reported, driven by very strong performance in the second quarter (+3.3% organic), supported by the acquisition of Not Your Mother’s, while Laundry & Home Care grew only 0.7% organically and Other Consumer Businesses declined 2.1%. The company raised its full-year outlook for organic sales growth to 1.5-3.5%.
IFF Q2 26 SALES UP +6% LFL WITH SCENT DELIVERING 8% LFL GROWTH
IFF reported Q2 26 sales of $2.0 billion, up 6% LFL, with adjusted operating EBITDA of $408 million at a 20.9% margin. The Scent segment posted sales of $665 million, up 8% LFL, driven by double-digit growth in Fragrance Ingredients and high-single-digit performance in Consumer Fragrance, while Fine Fragrance increased low-single digits impacted by the Middle East conflict, with adjusted operating EBITDA of $134 million at a 20.2% margin. The company introduced full-year guidance of $7.4-7.6 billion in sales and $1.53-1.60 billion in adjusted operating EBITDA.
TAKASAGO Q2 26 SALES UP 14.2% DRIVEN BY FRAGRANCE UP 22.2%
Takasago International reported calendar Q2 26 net sales of ¥66,165 million (€364 million), up 14.2% year-on-year, with operating profit of ¥3,868 million (€21.3 million) down 2.0% and profit attributable to owners of ¥3,245 million (€17.9 million) up 14.6%. The Fragrance segment led growth with sales of ¥21,938 million (€121 million), up 22.2%, and operating profit surging 137.7% to ¥784 million (€4.3 million), driven by strong performance in fine fragrances at the French subsidiary and home care products at the Singapore subsidiary, supported by lower raw material prices.
EURAZEO IN EXCLUSIVE TALKS TO SELL AROMA-ZONE TO PARTNERS GROUP
Eurazeo has entered exclusive discussions to sell its majority stake in French natural beauty retailer Aroma-Zone to Partners Group, generating approximately €576 million in gross proceeds, with Eurazeo planning to reinvest alongside the new majority owner. The transaction would support Aroma-Zone’s next phase of development, focusing on omnichannel expansion and international scaling after the brand more than tripled sales over the past five years.
E.L.F. AND BUBBLE LAUNCH HYBRID SKINCARE-MAKEUP COLLECTION
e.l.f. and Bubble have partnered to launch a limited-edition collection of three hybrid products combining skincare and makeup developed in response to consumer demand for mixing and layering beauty routines. The collection debuts in August via DTC channels before rolling out to Target in the US and Boots in the UK and Ireland.
BRAZIL MOVES TO EASE K-BEAUTY REGULATORY HURDLES
Korean cosmetics exports to Brazil surged 86.4% year-on-year to $43.4 million in the first half of 2026, as Brazil, the world’s third-largest cosmetics market, works to reduce regulatory barriers that have traditionally slowed K-beauty entry through ANVISA’s lengthy approval process. Closer regulatory collaboration between Korea’s MFDS and ANVISA is expected to streamline product registrations, significantly reducing time-to-market for Korean beauty brands seeking access to Brazil and the wider Latin American market.
LG HOUSEHOLD & HEALTH CARE DISCONTINUES TIPSY BRAND
LG Household & Health Care has discontinued its TIPSY colour cosmetics brand as part of a portfolio restructuring strategy, after the brand struggled to gain traction in a competitive social media-driven indie beauty market following its acquisition through Roa Korea in 2020. The company is now prioritizing investment in key brands including The History of Whoo, CNP, Belif, Dr. Groot and Physiogel.
BOOTS TAKEOVER TALKS HIT IMPASSE DUE TO PRICE MISALIGNMENT
Takeover negotiations for Boots have stalled after the Weston family reduced its offer for the UK health and beauty retailer, with owner Sycamore Partners reportedly unwilling to sell below its valuation. If a sale cannot be agreed, Sycamore is understood to be preparing plans to relist Boots on the London Stock Exchange in 2027.
JO MALONE LAUNCHES AT BOOTS WITH NEW COLLECTION
Jo Malone London has launched its fragrance offering at Boots for the first time, debuting the new Sea Salt & Bergamot collection, its largest launch of the year, in 39 stores and online. The fresh cologne range, priced from £24 to £125, marks a new milestone for the Estée Lauder-owned brand as it expands its UK retail footprint.
SEPHORA AND OLIVE YOUNG LAUNCH K-BEAUTY PARTNERSHIP
Sephora and Olive Young are launching a joint partnership on August 20, bringing 19 Olive Young-curated Korean beauty brands to 500 Sephora stores in the U.S. and online, with plans to expand to global markets including Hong Kong, Singapore, Malaysia, Thailand and the Middle East. The partnership marks Sephora’s first time bringing another retailer’s concept into its stores, as K-beauty continues to grow rapidly in the U.S. with $2.4 billion in sales, up 47% year-over-year.
ARMANI LAUNCHES I WILL MEN’S FRAGRANCE WITH JONATHAN BAILEY
Giorgio Armani has introduced I Will, its first new masculine fragrance in over 20 years, fronted by actor Jonathan Bailey and featuring a vanilla-woody-leather composition created by master perfumers Nathalie Lorson and Alberto Morillas after 2,800 trials. The scent, which aims to reach the top 10 men’s fragrances with an estimated €220 million in first-year retail sales, launches in the U.S. on August 15 followed by Europe in September, priced at €147 for 100ml.
