Beauty drove Target Q1 sales while Watsons owner prepare for an IPO. Those were some of the news last week in beauty.
TARGET BEAUTY SALES RISE 9.7% TO $3.4BN IN Q1 26
Target Corporation reported first-quarter net sales of $25.4bn up 6.7% with beauty sales reaching $3.4bn up 9.7% year-on-year. Digital comparable sales rose 8.9% supported by same-day delivery, while the company raised its full-year sales guidance, underscoring the resilience of the beauty category within mass retail.
BATH & BODY WORKS Q1 26 SALES FALL 3% TO $1.38BN, CUTS FY OUTLOOK
Bath & Body Works reported first-quarter sales of $1.38BN down 3% a year earlier. The company reaffirmed a full-year sales decline of 2.5% to 4.5% and announced CFO Eva Boratto’s departure on June 12, with Tom Javitch serving as interim CFO.
YATSEN Q1 26 SALES UP 22.5% ON SKINCARE BUT NET LOSS WIDENS
Yatsen reported first-quarter revenue of €130m (RMB1.02bn), up 22.5% year-on-year, driven by a 58.5% surge in skincare brand revenue which now accounts for over half of total sales, though the company posted a net loss of €7.84m (RMB61.9m) compared to €0.7m (RMB5.6m) a year earlier due to higher marketing and R&D spending. Gross margin improved to 80.2% as the company continues its transition toward premium skincare and innovation-led growth.
AS WATSON PUSHES AHEAD WITH POTENTIAL $30 BILLION DUAL IPO
AS Watson, the Hong Kong-based owner of Superdrug and Watsons, is moving forward with plans for a dual stock market listing in London and Hong Kong, targeting a valuation of around $30bn and aiming to raise around $2bn. The health and beauty retail group, which operates more than 17,000 stores across 31 markets, expects the IPO before the end of 2026 subject to market conditions.
PUIG ‘NOT FOR SALE,’ HAD ALSO TALKS WITH KERING
Marc Puig, executive chairman of Puig, told shareholders that the company is “not for sale” and revealed that Kering had approached Puig about a potential licensing deal in exchange for a minority stake, though those discussions did not lead to a transaction. He also confirmed that merger talks with Estée Lauder ended because the two sides could not align on governance, leadership and economic terms, adding that the Puig family remains committed as long-term shareholders.
LG H&H SEEKS TO SELL BEVERAGE UNIT HAITAI HTB TO FOCUS ON BEAUTY
LG H&H is looking to sell its beverage subsidiary Haitai htb for over €170m (300 billion won), appointing Samjong KPMG to manage the sale as part of a strategy to streamline non-core businesses and strengthen its beauty division. The proceeds will support future beauty investments and potential acquisitions amid intensifying competition in the global K-beauty market.
RISING NAPHTHA COSTS DRIVE UP COSMETICS PRICES IN JAPAN
Japanese consumer goods companies including Kao are raising prices on products such as Biore skincare from July, as rising naphtha costs driven by Middle East instability increase expenses for raw materials like surfactants and non-woven fabrics. The price hikes affect cosmetics alongside diapers and sanitary products, highlighting how geopolitical tensions are disrupting petrochemical supply chains and pushing manufacturers to pass higher production costs to consumers.
DEBUT AND NATURA PARTNER ON AI SKIN LONGEVITY INGREDIENT
Biotech company Debut and Natura have formed a strategic partnership to commercialize an AI-discovered skin longevity ingredient complex for the Latin American beauty market, combining Debut’s AI-powered discovery platform with Natura’s Amazonian bioactive expertise. Products featuring the clinically validated complex could launch as early as 2027, marking Debut’s entry into Latin America and reinforcing Natura’s expansion into science-backed longevity-focused beauty.
PIERRE FABRE INVESTS €50 MILLION TO DOUBLE AVÈNE PRODUCTION
Laboratoires Pierre Fabre is investing nearly €50 million to double production capacity at its Avène plant in southern France by 2029, increasing from 100 million to 200 million units annually, driven by strong international demand particularly in China and the United States. The group’s dermo-cosmetics business grew 2.6% in 2025, with Eau Thermale Avène rising 3.9% at constant exchange rates, as total group revenue reached €3.2 billion, 71% of which came from international markets.
UNILEVER INVESTS $270M IN NEW GLOBAL INNOVATION CENTRE IN THE US
Unilever is investing 270 million to develop a new Global Innovation Centre in New Haven, Connecticut, opening by spring 2029, which will serve as a leading R&D hub for its personal care, beauty and wellbeing businesses. The AI-powered centre will house 300 employees and succeed Unilever’s Trumbull facility, building on nearly 15 billion invested in the U.S. over the past decade.
PROYA TAKES CONTROLLING STAKE IN MAKEUP BRAND FLOWER KNOWS
Chinese beauty company Proya has acquired an additional 12.6% stake in makeup brand Flower Knows for €4.4m (CNY351m), raising its ownership to 51% and consolidating the brand into its financial results. The move strengthens Proya’s color cosmetics portfolio as its core skincare business slows, with Flower Knows generating €210m (CNY1.7bn) in revenue and €35m (CNY280m) in net profit last year.
MAKEUP BRAND VIOLETTE_FR SECURES $5M IN NEW FUNDING
French makeup brand Violette_FR has raised $5 million from existing investors including Silas Capital, Female Founders Fund, Monogram Capital and Highlander Partners, following a Series B round completed in December 2024. The brand, founded by former Estée Lauder global beauty director Violette Serrat, plans to use the funds to drive growth and global expansion, particularly in the US, building on bestsellers like Boum Boum Milk facial spray and Bisou Balm lipstick.
BELLA HADID’S FRAGRANCE BRAND ÔREBELLA CLOSES SERIES A FUNDING
Bella Hadid’s clean fragrance brand Ôrebella has closed a Series A funding round led by Silas Capital, with participation from Celebrands, and has appointed Anish Agarwal as its first CEO to drive global expansion. The brand recently entered over 500 Douglas doors across Europe and holds the number-one fragrance position at Ulta Beauty Middle East, following its February launch of an inaugural fragrance mist collection.
GALERIES LAFAYETTE CLOSES BEIJING STORE AFTER 13 YEARS
French department store Galeries Lafayette has closed its Beijing flagship after 13 years, citing evolving customer expectations and a luxury market slowdown in China, with the 48,000-square-meter store deemed too large to modernize without major investment. The group retains stores in Shanghai, Shenzhen and Macau, while continuing its international presence across Asia and the Middle East.
INDIA TIGHTENS RULES ON AESTHETIC TREATMENTS
India is increasing regulatory scrutiny on the fast-growing skin-enhancing and aesthetic treatment market, driven by booming demand for injectables, laser procedures and anti-aging services amid concerns over safety, misleading advertising claims and practitioner qualifications. Authorities aim to strengthen governance and professional standards as the sector expands rapidly across urban areas.
