Last week in beauty, Shiseido sales are down 3% but profit is surging.
SHISEIDO Q1 FY26 SALES FALL 3% WHILE CORE PROFIT JUMPS 58%
Shiseido reported first-quarter net sales of €1.23 billion, a 3% like-for-like decline, while core operating profit surged 58% to €70 million as the group successfully traded near-term top-line for structural cost savings. NARS led brand performance with 7% growth, China and Travel Retail held up better than expected with only a 1% decline, and the Americas swung to profitability, though EMEA fell 10% and Anessa dropped 17% due to inventory issues in China.
DOUGLAS Q2 FY26 SALES RISE 1.1% TO €949.7M
Douglas Group reported second-quarter sales growth of 1.1% to €949.7 million, while adjusted EBITDA declined 5.1% to €116.1 million, with a quarterly net loss largely due to goodwill impairments tied to its NOCIBÉ and Parfumdreams operations. E-commerce sales increased 2.4%, and the Beauty Card loyalty program now exceeds 64 million members, as the retailer shifts investment toward digital channels, AI services and exclusive brands.
NATURA Q1 FY26 SALES DOWN 3.7% AT CONSTANT RATE
Natura reported first-quarter net revenue of €800m (R$4.7bn) down -7.7% reported and -3.7% at constant rates. Brazil revenue dropped 5.5% due to declines in the Natura and Avon brands, while other Hispanic markets grew 7% at constant currency. Losses deepened at €75.7m (R$445m) vs. €8.5m (R$50m) last year.
KOSÉ Q1 FY26 NET SALES DIP -2.2% WHILE PROFIT PLUNGES 92%
KOSÉ Corporation reported first-quarter net sales of €423m (¥78.2bn), a 2.2% like-for-like or -0.9% reported decline while profit fell 91.9% to €2.1m (¥0.4bn), primarily due to lower earnings at ALBION and KOSÉ Cosmeport, along with the absence of a prior-year gain on sale of non-current assets. Regional performance was mixed: Japan sales dropped 7%, while Asia and North America grew 16.4% and 7.3% respectively, driven by higher China duty-free sales and strong Tarte e-commerce performance.
KENVUE Q1 FY26 ORGANIC BEAUTY SALES UP 5%
Kenvue Skin Health and Beauty delivered delivered the strongest performance with net sales increasing 8.4% and organic sales up 5%, supported by Neutrogena Sun Care expansion and the launch of OGX Pro Growth, as the company progresses toward its planned acquisition by Kimberly-Clark expected to close in the second half of 2026.
ARMANI MAY SPLIT 15% STAKE AMONG L’ORÉAL, LVMH AND ESSILORLUXOTTICA
Following the death of founder Giorgio Armani last September, his will designated LVMH, L’Oréal and EssilorLuxottica as preferred buyers, with a 15% stake potentially split equally among them according to Italian media. The sale of the initial stake is expected within 12 to 18 months of his passing, as the company prepares a five-year business plan and advisors to oversee the process.
FINAL BIDS MADE FOR ESTÉE LAUDER’S SMASHBOX, TOO FACED AND DR. JART
Final bids have been submitted for Estée Lauder Cos.’ Too Faced, Smashbox and Dr. Jart, with a potential deal expected to close within weeks. The brands were originally marketed together but later split, with the two color cosmetics brands offered as a pair and Dr. Jart independently.
ESTÉE LAUDER SETTLES CHINA DAIGOU LAWSUIT FOR $210M
Estée Lauder has agreed to a $210m settlement to end a shareholder lawsuit accusing the company of concealing its excessive reliance on irregular “daigou” parallel sales in China, a practice that was later cracked down by Chinese authorities in 2022. The company denied wrongdoing but agreed to the preliminary all-cash settlement, which requires court approval, while its insurers will cover part of the costs.
SVR ACCELERATES IN ITALY, PREPARES US AND BRAZIL EXPANSION
French dermatology group Laboratoires SVR reported 2025 revenue exceeding €250 million, with Italy, its second-largest market, tripling sales to €30 million in three years, driven by a shift toward non-punitive dermatology and digital marketing investments. The brand now prepares to enter the US and Brazilian markets.
ONE/SIZE LAUNCHES IN MIDDLE EAST ACROSS 92 SEPHORA DOORS
Performance makeup brand One/Size, founded by Patrick Starrr, is making its Middle East debut with an exclusive launch across all 92 Sephora stores in the region and online, featuring hero products including the top-selling On ‘Til Dawn setting spray. The brand sees the Gulf as a significant long-term revenue contributor, with Year One focused on awareness and strong retail fundamentals rather than immediate sales targets.
L’ORÉAL EXPANDS SAUDI ARABIA OPERATIONS WITH NEW JEDDAH OFFICE
L’Oréal Middle East has opened a new office in Jeddah and plans to double its workforce in Saudi Arabia by the end of 2026, with the Kingdom now representing the Gulf’s largest beauty market and a key growth driver aligned with Vision 2030. The company also launched its fifth professional hairdressing academy in the country aiming to certify over 1,000 women by 2029, while generating €726m (SAR3.2bn) for the Saudi economy and supporting more than 8,700 jobs.
VALENTINO BEAUTY EXPANDS BORN IN ROMA WITH HAIR & BODY MISTS
Valentino Beauty is launching a new Born in Roma Hair & Body Mists collection for Summer 2026, featuring four gourmand-inspired scents priced at $49 for 100ml, available at Sephora, Ulta, Macy’s and Dillard’s starting in June. The collection aims to offer a lighter fragrance layering experience with colorful couture-inspired packaging, supported by a “Valentino Summer Fair” campaign.
AMOREPACIFIC REOPENS AI-POWERED FLAGSHIP IN SEOUL
Amorepacific has reopened its AMORE YONGSAN flagship store in Seoul as a “House of New Beauty,” featuring AI-driven skin diagnostics, bespoke cosmetics creation, and personalized hair serum services under its “Holistic Longevity” philosophy. The space combines a brand showroom, research hub, and community-focused experiences with international visitor services including multilingual support and tax refunds.
ZARA DENIES JO MALONE TRADEMARK INFRINGEMENT
Zara has denied allegations that it infringed Estée Lauder’s Jo Malone trademark through its fragrance collaboration with perfumer Jo Malone, arguing that its use of the name follows guidance previously provided by Estée Lauder’s lawyers in 2020. The retailer maintains that wording such as “In collaboration with perfumer Ms. Jo Malone CBE, founder of Jo Loves” clearly distinguishes the individual from the Jo Malone London brand.
SHISEIDO TO CLOSE TAIWAN FACTORY, SHIFT PRODUCTION TO JAPAN
Shiseido announced plans to close its Hsinchu Factory in Taiwan by the second half of 2027, moving production to its Nasu Factory and other domestic facilities in Japan as part of a global operational restructuring to improve capacity utilization and cost efficiency. Taiwan Shiseido will refocus on strengthening its local distribution business, while the move aligns with the company’s 2030 Medium-Term Strategy and “Evolve Global Operations” initiative.
RUKA RAISES $4.5M FOR LAB-GROWN HAIR FIBRE
Biotech beauty start-up Ruka has closed a $4.5 million funding round co-led by Freedom Trail Capital and Henkel Ventures to scale its collagen-based synthetic hair fibre, expand retail footprint and support US expansion in 2026. The biodegradable, hypoallergenic fibre is designed specifically for curls, coils and kinks, offering an alternative to ethically complex human hair and plastic-heavy synthetics.
