The recurring problem

Posted by Robin on 22 August 2026 Leave a Comment

Coty outlined a wide-ranging FY2027 innovation programme across its Prestige portfolio. Key initiatives include BOSS Bottled Beyond for Her, alongside further investment in Burberry Goddess following the launch of Goddess Amber Vanilla. The group also plans to expand Marc Jacobs Beauty makeup from online distribution into Sephora US and travel retail from September. Kylie Cosmetics will build on its multi-category strategy, while Calvin Klein will support Euphoria Elixirs and tap into renewed interest in 1990s nostalgia around CK One.

Further launches are planned across Coty’s core brands, with Etro fragrances set to debut in the second half of FY2027 and Swarovski fragrances scheduled for calendar 2027.

— Read more in Coty’s fourth quarter performance ‘ahead of expectations’ as full-year revenues decline -2% at Moodie Davitt Report.

This is the recurring problem with the bullish restructuring thesis. Every simplification comes with an earnings hole attached. Coty could emerge as a more focused fragrance company, but first, shareholders still have to get through the transition first, and management has not provided enough visibility to believe that the remaining portfolio will replace what's being sold or returned.

— Read more in Coty: 'Transition Year' Is Wall Street Code For More Pain at Seeking Alpha.

Turnaround strategy

Posted by Robin on 20 August 2026 Leave a Comment

Estee Lauder forecast annual profit above many Wall Street estimates on Wednesday, betting its CEO's turnaround strategy would deliver sustained demand for luxury fragrances and strong performance in major growth market ‌China. [...] Resilient spending by affluent and younger customers has boosted demand for the cosmetics maker's luxury fragrances and skincare products, such as Le Labo and Balmain Beauty. The company wants the same momentum for its makeup and hair care categories, for which net sales were respectively flat and declining.

Shares of Clinique and M.A.C owner, whose merger conversations with Jean Paul Gaultier-owner Puig collapsed in May, rose nearly 7% in premarket trading after it also topped quarterly sales estimates. Resilient spending by affluent and ‌younger customers, especially on trendy items, has helped boost demand for ‌the cosmetics maker's luxury ⁠fragrances and skincare products such as Le Labo ‌and Balmain Beauty.

Missed opportunities

Posted by Robin on 19 August 2026 Leave a Comment

This slow, steady strategy, however, can also look like a series of missed opportunities, a reticence to the category or some combination of both. In the shadow of its high-performing licences like Narciso Rodriguez are smaller ones that are rarely mentioned in earnings reports or completely ignored, like Tory Burch. At the same time, Shiseido is getting left out of a market that is increasingly consolidating around a few key players.

Read more in Beauty Is Betting on Fragrance. Why Isn’t Shiseido? at Business of Fashion.

Shiseido’s fragrance business recovered from a 9% decline in the first quarter to 12% growth in the second, resulting in a 1% increase for the first half. New products from narciso rodriguez performed strongly, while ISSEY MIYAKE PARFUMS expanded its reach among new consumer segments. During the second half, Shiseido plans to launch a major new Max Mara fragrance simultaneously across global markets as it seeks to accelerate growth in the category.

Premiumisation

Posted by Robin on 12 August 2026 Leave a Comment

US beauty growth was driven by a boom in fragrance demand in the first half of 2026, according to new data from market research firm Circana.

Prestige retail beauty sales increased by 7% to US$17.1bn during the first six months of the year, with mass retail sales also rising 7% to $39.2bn.
[...] In prestige retail, fragrance dollar sales grew 6%, driven primarily by premiumisation rather than an increase in purchases, with average prices rising 5% while unit sales remained flat.

— Read more in Fragrance drives US prestige beauty as sales top $17 billion in first half of 2026 at Cosmetics Business.

A strong first half

Posted by Robin on 5 August 2026 Leave a Comment

Puig has reported a strong first half in its 2026 financial year, with revenues up 4.4% to €2.3bn as fragrance demand for Caroline Herrera drove sales.

The Spanish beauty conglomerate, which has since terminated its talks with the Estée Lauder Companies over a potential merger, also recorded adjusted net profit of €26m in H1 2026.

— Read more in Puig revenue up 4.4% in H1 2026 thanks to fragrance demand at Cosmetics Business.

Fragrance and fashion sales, the lion’s share of the business, grew 3.7% on a like-for-like basis to €819 million, notably driven by both prestige and niche fragrances. The prestige segment benefited from double-digit growth at Carolina Herrera, fueled by the successful launch of La Bomba in 2025. The niche segment also delivered double-digit growth, led by strong performances from Byredo and Dries Van Noten.

— Read more in Puig Revenues Climb 4.1% in the Second Quarter at Vogue Business.

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Now Smell This

a blog about perfume

The recurring problem

Turnaround strategy

Missed opportunities

Premiumisation

A strong first half