Last week in beauty saw record profits for some and tough quarters for others. From AI bets to IPO rumors, here’s the breakdown.
ESTÉE LAUDER’S ORGANIC SALES UP 4% DURING Q2 FY26
Estée Lauder surpassed Q2 expectations and raised its full-year guidance, driven by a strong resurgence in Mainland China and margin gains from its restructuring plan. However, regional performance remained mixed, and the company cautioned that significant tariff headwinds will pressure second-half profitability.
ELF’S SALES UP 38% IN Q3 FY26 ITS 28TH CONSECUTIVE QUARTER OF GROWTH
E.l.f. Beauty has increased its full-year sales forecast to between $1.6bn and $1.61bn after a strong quarter where net sales grew 38% to $489m. The company’s performance is driven by record-breaking results from Rhode and the launch of a new Super Bowl campaign.
COTY’S Q2 REVENUE DOWN 3% LIKE-FOR-LIKE
Coty’s Q2 FY26 net revenues were $1.68 billion, reflecting a 3% like-for-like decline as its Prestige division fell 2% and Consumer Beauty dropped 6%. The company has initiated a new strategic framework and, following the divestiture of its Wella stake, now anticipates a mid-single-digit revenue decline for the next quarter while withdrawing its full-year guidance.
NYKAA’S Q3 FY26 PROFIT SURGES 140% ON 27% REVENUE GROWTH
Nykaa’s net profit jumped 140% to €5.9 million in Q3 FY26, driven by a 27% increase in overall revenue to €268 million and an expanded EBITDA margin of 8%. This profitable growth is attributed to a premiumization strategy, higher advertising income, and improved operational efficiencies, alongside physical store expansion.
RITUALS’ SALES UP 16% IN 2025AT €2.43 BILLION
Rituals Cosmetics achieved double-digit growth in its 25th anniversary year, with net revenue rising 16% to €2.43 billion in 2025. The European brand also posted a strong EBITDA of €545 million, supported by its global network of nearly 1,500 stores.
COTY PARTNERS WITH OPENAI TO INTEGRATE AI ACROSS OPERATIONS
Coty has formed a partnership with OpenAI to provide its employees with secure, enterprise-grade AI tools to enhance efficiency and collaboration. The beauty company emphasizes that this innovation will serve as an efficiency enhancer while keeping human expertise central to its operations.
WELLA IS REPORTEDLY PREPARING FOR POTENTIAL U.S. IPO
Investment firm KKR is reportedly preparing Wella Company, the parent of brands like Clairol and OPI, for a potential U.S. initial public offering as early as this year, which would value the company significantly higher than its previous $4.3 billion valuation. This follows KKR’s recent acquisition of Coty’s remaining stake in the hair care giant, amid a mixed track record for beauty IPOs in recent years.
GIVAUDAN INVESTS $110M TO EXPAND FRAGRANCE PRODUCTION IN MEXICO
Givaudan is investing $110 million to build a new fragrance compounding plant in Mexico, with a capacity of up to 25,000 tons, to better serve the growing Latin American market. The facility, set to open in 2029, is part of a regional supply strategy to increase agility and reduce logistical costs and emissions.
ESTÉE LAUDER FINED $550K FOR ENVIRONMENTAL VIOLATIONS
The Estée Lauder Companies has been fined $550K after pleading guilty to two violations of Canada’s Environmental Protection Act for selling eyeliner containing a PFAS chemical without proper notification and failing to comply with a subsequent order. In addition to the financial penalty, the company must notify its shareholders and will be listed on Canada’s Environmental Offenders Registry.
EVOLUDERM SECURES MINORITY INVESTMENT FROM NEXTSTAGE AM
French personal care brand Evoluderm has received a €27 million minority investment from private equity firm NextStage AM to accelerate its growth. The brand, which has tripled its revenue over three years to nearly €40 million in 2025, plans to use the capital to expand its physical and digital footprint in France and internationally.
ROUNDTABLE HEALTHCARE ACQUIRES SKINCARE BRAND COLORESCIENCE
Private equity firm RoundTable Healthcare Partners has acquired the skincare and sun protection brand Colorescience from previous owner 1315 Capital, as the brand’s sales approach $100 million. The partnership is intended to fuel the next stage of growth for the science-focused brand.
MARUBENI ACQUIRES JAPANESE SKINCARE BRAND ETVOS
Marubeni Corporation has acquired a 100% stake in the Japanese skincare and cosmetics brand ETVOS. The acquisition is a strategic move to use ETVOS as a foundational asset for developing and expanding a broader Beauty & Health business platform within the Japanese market.
UK MAKEUP BRAND BARRY M ENTERS ADMINISTRATION, SEEKS BUYER
British ethical makeup brand Barry M has filed for administration after four decades of family ownership and is urgently seeking a buyer. The brand, which reported revenue of £17.4 million in early 2024 and employs over 100 people, has been challenged by rising supply chain costs, high UK manufacturing expenses, and a difficult retail environment.
SPARXELL RAISES $5M TO SCALE PLANT-BASED COLOR TECHNOLOGY
Cambridge-based startup Sparxell has raised $5 million in Pre-Series A funding to commercialize its plant-based, structural color technology that replaces synthetic dyes and pigments. The company’s cellulose-derived technology, which mimics natural mechanisms like butterfly wings, reduces water use by up to 90% and eliminates toxic chemicals for applications across cosmetics, textiles, and packaging.
INTERPARFUMS LAUNCHES SOLFÉRINO PARIS FRAGRANCE BRAND IN THE US
Interparfums is launching its incubated niche fragrance brand, Solférino Paris, in the United States through Bloomingdale’s. This move strategically targets the fast-growing indie fragrance market, which significantly outpaced other beauty categories in the U.S. last year.
BIOTECH SKINCARE BRAND SICKSCIENCE ENTERS ULTA BEAUTY
Two-year-old biotech skincare brand SickScience is launching at Ulta Beauty, marking its first major retail partnership and making its proprietary exosome technology more accessible. The brand’s lineup of targeted serums will be available online and in over 750 stores, capitalizing on growing consumer demand for clinically-backed, science-led skincare.
LANCÔME APPOINTS CHRISTY TURLINGTON BURNS AS AMBASSADOR
Lancôme has named supermodel and maternal health advocate Christy Turlington Burns as its newest global ambassador. She will represent the brand’s timeless elegance and front campaigns for key products, aligning with Lancôme’s values of confidence and impactful beauty.
