The Estée Lauder Companies Inc.’s turnaround is starting to show real teeth. Fiscal Q2 2026 delivered what beauty execs have been waiting for: +6% sales to $4.2B, +290 bps margin expansion to 14.4%, EPS up 43%—and a raised full-year outlook. “Beauty Reimagined” is moving from strategy deck to P&L, with PRGP savings funding reinvestment in brands, innovation and go-to-market. Free cash flow hit $581M in the first half, giving the company room to press the accelerator even amid tariffs and macro noise. 👉 Want the full breakdown? Category-by-category performance (skin care, makeup, fragrance, hair), China and emerging market trends, and what this means for Estée Lauder’s path back to double-digit operating margins—read the complete financial deep dive: https://lnkd.in/gNxavNrx

Vogue Business covered Coty’s Q2 FY26 update and the strategic framework, Coty.Curated, now underway under Coty Executive Chairman & Interim CEO Markus Strobel. What stood out: even in a choppy market, there are clear pockets of momentum to build on. Portfolio brands like Burberry and Kylie Cosmetics are leading prestige makeup growth, and skincare is growing double digits, led by philosophy and Lancaster. Fragrance remains a major engine for Coty, with continued strength behind BOSS Bottled Beyond and early momentum for Cosmic Kylie Jenner Intense, plus a pipeline that includes a new Calvin Klein launch, a Marc Jacobs Beauty relaunch later this year, and a Swarovski fragrance planned for 2027. The focus now is disciplined: invest behind the right brands, simplify where needed, and execute harder. #Coty #BeautyIndustry #Fragrance #Innovation #Earnings https://lnkd.in/eW6-RKhF

Continuing our tour of the likely impact players in Beauty M&A 2026. Today's focus: once mighty, now Coty. If Kering failed to buy its way into becoming a beauty powerhouse, then Coty was a beauty powerhouse who bought its way into failure. Coty wasn't alway like this. After being spun out of Pfizer in the mid-90s, Coty grew aggressively through M&A and licensing — for example by buying Rimmel from Unilever, adding OPI, and upgrading from legacy names like Preferred Stock to licensing Marc Jacobs. The strategy worked and, in the process, Coty grew, went public in 2013 (third-biggest in CPG history) and became the world’s largest fragrance player. Then they took their winning formula too far and made a single catastrophic mistake. In 2016, Coty bet ~$12B on buying Procter & Gamble’s beauty portfolio — roughly 40 brands (in an ominous sign of foreshadowing, no one seemed entirely sure how many). The idea: compress another 20 years of portfolio-building into one transformational deal. In theory, Coty was acquiring game-changing scale. In practice, it suffered life-threatening organ rejection. As good as Coty was at its prime, it simply didn’t have the talent bench strength, systems, balance sheet or operational depth to digest that massive sprawl. What followed was a decade of strategic whiplash: chronic integration overruns, CEO turnovers, a questionable $600M bet on Kylie Cosmetics, LLC, a KKR hair JV to de-bulk and raise cash, and endless “transformation” plans. There was one brief fragrance-fueled stock bounce post-COVID. But the structural issues remained: weak balance sheet and aging brands. Then came the coup de grâce: Kering pulled Gucci and other fragrance licenses and handed them to L'Oréal. The stock plunged. Coty became Carthage after the battle of Zama: any hope of empire-building evaporated, now the focus was how to best manage the inevitable decline. With new leadership under Markus Strobel, focus and discipline will hopefully improve. But after ten years of disappointments, the market’s lost all patience. The most likely endgame? Stabilize — then sell, whole or in pieces. From an M&A perspective, that’s where things get interesting. If you know where to look, there may still be value buried inside Coty. And this is exactly the discussions we’ll be asking at Beauty Independent’s Dealmaker Summit, NYC, June 8–9. So secure your seat now! 👉 https://shorturl.at/Ew7au #weareindiebeauty #hereforthefierce #beauty #beautybusiness #beautyindustry #beautybrands #beautyretail #beautyentrepeneur #cosmetics #skincare #haircare #beautyinvesting #venturecapital #venturefunding #acquisitions #dealmakersummit

Coty just watched its stock crater to a 52-week low and announced a major reset? What does it say about the market? Let's take a look at Coty's Q2 FY26 earnings report, released earlier this month. On the whole, revenue is just slightly up by 1%, but like-for-like down by 3%, with the biggest impact in the consumer beauty category. Analyzing financial reports of other major cosmetic groups, we've seen that prestige and luxe are growing, but not all prestige is the same: some brands are stronger (niche newcomers) and more fast-paced, while others are not (as is the case for the more historical prestige brands). Coty saw mid-single-digit growth in makeup led by Burberry and Kylie and double-digit growth in luxe skincare: Lancaster & Philosophy. EMEA is leading the growth with the biggest impact in the division, accounting for 48% of the sales. Zooming in on the flat areas and losses. Broad declines hit consumer beauty hardest, with prestige fragrance and the Americas dragging Coty down. Consumer beauty fell by 6%, color cosmetics fell, and body care and mass fragrance were also down. Brands like CoverGirl and Rimmel have seen their sales lowering. We shouldn't dramatize; the impact is still single digit. It shows instability, and it made Coty withdraw its outlook for this fiscal year, which signals a lack of control or optimism regarding the evolution. What happened to Coty, and why did it switch from growth and profit in 2024 to contraction and losses in 2025? I've seen explanations such as "market contraction" or "loss of appetite." Somewhat valid, but some companies and brands are winning in this contracted market and with this loss of appetite. Have a look at the portfolio: Fragrances: Gucci, Burberry, Calvin Klein, Hugo Boss, Marc Jacobs, Jil Sander, Tiffany & Co., Davidoff, Nautica. Skincare: Philosophy, Lancaster, SKKN BY KIM. Consumer Beauty Brands Cosmetics: CoverGirl, Rimmel London, Max Factor, Bourjois, Sally Hansen, NYC New York Color. Fragrances & Body: Adidas, 007 James Bond. Sure, these brands sound familiar; they have some notoriety. But are they cool, are they innovative, do they signal a status, and are they disruptive? Here's what I believe is wrong with Coty's brands, a belief motivated by what's going on with some other portfolios. Coty has a portfolio of well-established brands. They were notorious brands with solid brand awareness; they trimmed the marketing budget because they thought they could continue performing with some cuts—a "fewer, bigger, better" strategy focused on ROI. It wasn't an immediate impact; it is something we see happening a few years later, but another sexier brand was there, and it invested and gained visibility, and one at a time the consumers made a choice, a different choice than a Coty brand. Look at what's performing for Coty: Kylie. The world is massively fast, faster than it has ever been. We feed on sensationalism. There's no place for boring; there's no place for absenteeism.

The latest L’Oréal annual report reveals a paradox: while L'Oréal is doing absolutely fine on the whole, there is a category that seems to have hit a plateau: the Luxe division. Why are brands like Lancôme (The division's largest brand), Yves Saint Laurent (YSL) Beauté, Giorgio Armani Beauty, Prada Beauty and Valentino Beauty stalling? Especially that L'Oreal acquired more luxury brands in 2025-2026 from Kering: House of Creed, Balenciaga Beauty, and is currently negotiating taking Gucci Beauty from Coty. L'Oreal is a company of many bets, not just one. However, keep in mind the economic context in which we are right now. "It's the economy, stupid!" some would shout. Not all luxe brands are equal, and some thrive in uncertain and even depressed economies. Beauty is resilient, with many examples throughout history. One is the history of L'Oreal itself. The company didn't just survive both World Wars but used the periods to transition to a diversified industrial giant. Another example is Elizabeth Arden a company that thrived at the height of the Great Depression, whose strategy was not to become more affordable but, on the contrary, to enter extreme luxury and exclusivity. Red lipstick was the most significant and symbolic beauty product of World War II, a cosmetic product remaining on the market despite others being rationed or banned, as resources were scarce and all focused on the industry of war. This was the result of lobbying from companies like Elizabeth Arden, Helena Rubinstein and Max Factor that campaigned to keep the lipstick on the shelves, but it was also a political manifesto against the clean look promoted by the regime in Germany. Should we take the rise of luxe beauty as an economic indicator for worsening outlooks, we may remain positive for the time being: the Luxe market is not performing at its best for the time being. A giant in the luxe skincare also released its annual report. Shiseido net sales are down -2% YoY like-for-like but beat estimates with H2 acceleration, while L'Oreal missed its Q4 predictions. What did improve for Shiseido for this fiscal year is the core operating profit, which hit ¥44.5 billion (4.6% margin, +22% YoY). Let's keep an eye on the luxe cosmetic market as an indicator of economic predictions.

It was a pleasure to speak with Alessandro Carrara for his excellent essay in Cosmetics Business on the Q2/H1 2026 results recently released by The Estée Lauder Companies Inc. Below are a few of my takeaways from the earnings release, but do see the original article. https://lnkd.in/eHCGHGnm 🔘 The Q2 results have been a bit of a mixed bag. On the one hand, the results point to some stabilisation, particularly in skin care (which constitutes just under half of total sales) and in Asia. This has offset weakness in the U.S. and in makeup, which constitutes just under a third of sales and grew only 1 percent last quarter. 🔘 The mixed bag nature of the quarterly results is reflected in market reactions. Some market commentators stressed that it was a positive report that challenged bearish narratives on the back of skin care and fragrance sales which came in at 7 and 6 percent, respectively. On the other hand, after the Q2 results were released, Estée Lauder shares fell 19 percent as the market was disappointed with the forward guidance. 🔘 Makeup remains pressured by slower innovation cycles and a shift towards minimalist beauty routines in some regions. Consumers often experiment less with makeup than skin care and fragrance which creates a structural cap on potential growth for makeup. 🔘 ELC's strong performance in China is the biggest bright spot of their latest earnings report. Sales in H1 2026 were up 11 percent in Mainland China as compared to 5 percent for the rest of Asia, 7 percent in Europe, and a 1 percent contraction in the Americas. Estée Lauder has benefited from strong location execution in China. Also their brand mix aligns well with Chinese consumers' preference for prestige skincare and premium fragrance 🔘 Early signs suggest that the 'Beauty Reimagined' turnaround is working to improve operational discipline and brand focus, particularly cost control and SKU rationalisation. Management explicitly linked margin improvement and operational progress to the turnaround programme's focus on productivity and simplification while improvements in diluted EPS were linked to cost discipline and better mix management. However, the financial benefits may be more visible later this year as restructuring costs wind down. 🔘 The second half of the year should show modest sequential improvement, led by sales in Asia and fragrance. Margin trends will be more important than top line growth acceleration, which is not a bad place to be given where ELC is with their restructuring programme and the uncertain macroeconomic environment.

Coty Q2 2026: Pivot to "Realism" The honeymoon phase of the "Beauty Supercycle" is officially over, and Coty is the latest to signal a shift from aggressive expansion to disciplined curation Reporting its Q2 2026 results, Coty delivered a "mixed bag" that markets didn't take lightly. While revenue slightly beat expectations, the withdrawal of full-year guidance and an earnings miss sent a clear message: the path forward is about profitability over vanity metrics The Numbers (Reported Data): - Net Revenue: $1.68 billion, up 1% reported, but -3% Like-for-Like (LFL) - Adjusted EPS: $0.14, missing the $0.18 consensus - Margins Under Fire: Adjusted Gross Margin fell 260 bps to 64.2%, squeezed by heavy holiday promotions and a 6% LFL slide in Consumer Beauty Deleveraging Win: Net debt is down to $2.6 billion, with a leverage ratio of 2.7x—a 9-year low, bolstered by the $750 million sale of the remaining Wella stake What’s Really Happening? 1. The "Coty. Curated." Era: Coty is moving away from "innovation for innovation's sake", which led to SKU bloat and trade returns, toward a "less is more" philosophy. By streamlining the FY27 pipeline, Coty is betting that fewer, higher-impact launches will protect margins 2. Prestige is the Anchor, Consumer is the Work-in-Progress: Prestige (68% of sales) remains the engine, but even it saw a 2% LFL decline due to a slowing U.S. fragrance market. The real challenge is Consumer Beauty (-6% LFL). The strategic review of brands like CoverGirl and Rimmel continues, with a focus on "iconic assets" over broad-spectrum growth 3. The AI Bet: Coty’s partnership with OpenAI is reportedly slashing post-production costs by 70-90% through AI-generated assets. Long term impact remain to be seen, we have seen too many companies boasting bold AI-driven efficiency claims that later resulted in mass re-hiring and reduced quality of execution The Bottom Line: Coty is in the middle of a "clean-up" year. They are sacrificing short-term guidance to reset the foundation. The balance sheet is the healthiest it’s been in a decade, but the market now demands to see that translated into organic LFL growth FMCG Peers: Is the "Curated" approach the new standard for 2026, or are we seeing a permanent cooling of the beauty sector? #FMCG #Beauty #Strategy

While the fragrance category slowed post-pandemic, Puig has outpaced the competition, with makeup emerging as its powerhouse growth engine. Key takeaways: Fragrance still drives 70% of revenue. Core brands like Rabanne, Carolina Herrera, and Jean Paul Gaultier held their top 10 global rankings. Makeup was the undisputed growth leader for the year. What's fueling Puig's success against the odds? Read our full report to find out: https://lnkd.in/gqgcpASF

After Puig released its quarterly results last week, all major beauty groups have now published their financial performance for the October–December period. At year-end, we can therefore take stock of the winners and losers of 2025:   🚀 #LOréal and #Puig are the clear winners of 2025, standing out as the only groups delivering positive growth. Despite this performance, Puig’s share price has been impacted by anticipated slowdown in the fragrances market, a segment in which the Group has significant exposure. ✨ #EsteeLauder and #Shiseido are showing early signs of recovery following their respective restructuring plans, with two consecutive quarters of growth and a positive market reaction reflected in their share price performance over the past year. ⚠️ #Coty and #LVMH Beauty have both announced CEO changes in December and January respectively following a year of underperformance. While Coty has now reported five consecutive quarters of decline — with its share price down ~59% year-on-year — LVMH Beauty has not fully capitalised on the strength of its brand portfolio (0% organic growth for the full year and -1% in Q4). 🌍 Market trends : 💎 Premium — but also mass — fragrances continue to drive overall market growth 🇺🇸🇨🇳 Emerging signs of recovery in the US and China, where market conditions improved in H2 💧 High-performance skincare products are attracting growing interest from market players 🎯Let’s see how 2026 starts!! Full analysis: https://lnkd.in/eEwjyZ3P Accuracy

Milani Cosmetics® Launches “What’s Inside Is Everything” Campaign   Mary van Praag, CEO of Milani Cosmetics, unveils the brand’s refreshed identity with a campaign celebrating quality, craftsmanship, and intention. The initiative spotlights the iconic Baked Collection with new ingredients and updated packaging, reflecting Milani’s long-term strategy to elevate the mass beauty experience.   How will this brand refresh, reshape the perception of mass cosmetics and influence beauty storytelling?   Read the full story on MarTech News. https://lnkd.in/dv3FdpJq   #MilaniCosmetics #BrandRefresh #BakedCollection #BeautyInnovation #MassBeauty #CosmeticsIndustry #MarketingCampaign #BeautyLeadership #ExecutiveUpdate