WWD Beauty Inc ranks the world’s largest beauty manufacturers. Firms are arranged by their beauty sales for the 2019 calendar yr. For those corporations whose fiscal yr didn’t run from Jan. 1, 2019 to Dec. 31, 2019, estimates were calculated. All sales figures were either obtained from the businesses or generated with the assistance of industry sources, indicated by (EST.) within the rating.
For this list, “beauty” includes fragrance, makeup, skincare, body care, sun care, hair care, deodorant, plus cellulite and shaving products. It doesn’t take into consideration bar soaps, razors, toothpastes, food and food plan foods, medicines, vitamins or detergents. The revenues only include sales of beauty products each firm manufactures and don’t include business from private-label lines or products distributed for other corporations. Information within the major brands section reflects each company’s holdings in 2019.
Yr-on-year percentage changes are in reported terms, not on a like-for-like or constant-currency basis. Non-U.S.-based firms’ sales are converted into dollars in line with the 2019 average yearly exchange rate.*
1. L’Oréal
Clichy, France
2019 Beauty Sales:
$33.43 BILLION
€29.87 BILLION
+10.9% VS. 2018
Predominant Brands:
Consumer Products: L’Oréal Paris, Garnier, Maybelline Recent York, NYX Skilled Makeup, Stylenanda, Essie, Dark & Lovely, Niely, Magic.
PROFESSIONAL PRODUCTS: L’Oréal Professionnel, Redken, Kérastase, Matrix, Pureology.
L’ORÉAL LUXE:
Lancôme, Yves Saint Laurent, Giorgio Armani, Kiehl’s, Biotherm, Urban Decay, Shu Uemura, IT Cosmetics, Helena Rubinstein, Ralph Lauren, Viktor & Rolf, Cacharel, Diesel, Clarisonic, Yue Sai, Atelier Cologne, Valentino.
ACTIVE COSMETICS:
La Roche-Posay, Vichy, SkinCeuticals, CeraVe, Decléor, Roger&Gallet.
Key Financials:
Like-for-like sales growth: +8%
Constant-currency
Sales growth: +8.8%
Operating profit:
€5.55 billion, +12.7%
Net profit:
€4.36 billion, +9.3%
Sales by Division:
Skilled Products: €3.44 billion, +5.5% (+3.2% like-for-like)
Consumer Products:
€12.75 billion, +6%
(+3.3% like-for-like)
L’Oréal Luxe:
€11.02 billion, +17.6% (+13.8% like-for-like)
Energetic Cosmetics:
€2.66 billion,
+17.1% (+15.5% like-for-like)
Sales by Geographic Zone:
Western Europe:
€8.28 billion, +2.6% (+1.8% like-for-like)
North America:
€7.57 billion, +4.6%
(-0.8% like-for-like)
Asia-Pacific: €9.66 billion, +30.4% (+25.5% like-for-like)
Latin America: €1.77 billion, -0.7% (+2% like-for-like)
Eastern Europe:
€1.91 billion, +8.9%
(+9% like-for-like)
Africa and Middle East: €688.7 million, -0.7% (-4.1% like-for-like)
Biggest markets: The U.S., China and France.
It was one other yr of strong acceleration for the world’s largest beauty player, which saw its sales grow on the fastest rate since 2007. Its Luxe and Energetic Cosmetics divisions did particularly well, the latter witnessing its best yr ever, in line with the corporate. The yr was also marked by an improvement within the Skilled Products division, which had been hampered by a lackluster salon marketplace for several years, and growth inside Consumer Products, notably due to the L’Oréal Paris brand.
Among the many yr’s major moves, L’Oréal was particularly energetic in its attempts to bolster its presence within the premium fragrance category, where it had lost its global leadership positioning to Coty following its acquisition of the Procter & Gamble luxury fragrance brands in 2016. In October, L’Oréal inked an agreement with Groupe Clarins to accumulate its fragrance business—notably the Mugler and Azzaro brands, which had sales of around €340 million in 2018. The deal closed at the tip of the primary quarter of 2020. After months of speculation, a licensing agreement was also signed with Prada in December, landing L’Oréal the rights to the brand—previously under Puig—starting in January 2021.
Through its BOLD Business Opportunities for L’Oréal Development fund, the firm took a minority stake in Canadian aesthetic medicine specialist Functionalab Group; invested within the Cathay Innovation fund to support the wonder tech start-up ecosystem in China and in Fireside Fund II, aimed at supporting revolutionary consumer brands in India, in addition to investing in Carbios, a biotech start-up aiming to reinvent the life cycle of polymers.
Amongst executive moves, three latest members joined L’Oréal’s executive committee—Alexandra Palt, who became chief corporate responsibility officer and executive vice chairman of the Fondation L’Oréal, Vincent Boinay, who’s general manager for travel retail worldwide, and Fabrice Megarbane, president of L’Oréal China. Christophe Babule was named executive vice chairman and chief financial officer, succeeding Christian Mulliez as of February 2019, and Cyril Chapuy became president of L’Oréal Luxe starting in January 2019. Stéphane Rinderknech was named president and chief executive officer of L’Oréal USA and executive vice chairman for North America.
The L’Oréal Luxe division was driven by the strong dynamism of its 4 biggest brands—Lancôme, Yves Saint Laurent, Giorgio Armani and Kiehl’s—with all of them posting double-digit growth. Lancôme performed well in skincare and was boosted by the launch of fragrance Idôle, targeting the Millennial consumer and fronted by Zendaya. It was also a very good yr in fragrance for Yves Saint Laurent and Giorgio Armani. Atelier Cologne performed well and initial results under Valentino, which joined L’Oréal’s portfolio in January 2019, were strong.
Inside Energetic Cosmetics, La Roche-Posay’s sales broke the €1 billion barrier, and the division as an entire grew at twice the general rate of the dermocosmetics market, in line with L’Oréal. Vichy performed well in Eastern Europe and Latin America, and SkinCeuticals grew strongly, especially within the U.S. and China, where its sales reportedly almost tripled. CeraVe continued its international expansion.
Skilled Products saw a transparent acceleration within the second half, and outpaced the market in growth, attributable to double-digit increases from Kérastase in addition to successes under Matrix, Redken and L’Oréal Professionnel. Growth was particularly strong within the U.S. and Asia-Pacific, and the yr was marked by an acceleration within the division’s e-commerce revenues.
Under Consumer Products, L’Oréal Paris saw its strongest growth since 2007, boosted by major launches including Rouge Signature in makeup and Revitalift Filler in skincare. Garnier was driven by emerging markets and its Tissue Masks and Micellar Cleansing Water products, and enhanced its initiatives within the organic and naturals space. Stylenanda, acquired in 2018, performed strongly in Asia. By category, skincare grew significantly for the division, while makeup slowed in established markets, notably the U.S., in keeping with market trends.
By geographic zone, Asia-Pacific became the group’s biggest region by way of sales, due to what L’Oréal described as “a remarkable end to the yr in China,” reporting results before the coronavirus pandemic. Sales were also strong in South Korea, India, Indonesia and Malaysia, although Hong Kong was impacted by the social context there, especially in the fourth quarter. Eastern Europe grew strongly, while Western Europe saw a return to growth, and North America was negatively impacted by the makeup category, which held back each the Consumer Products Division and
L’Oréal Luxe.
Group-wide, e-commerce sales jumped by a large 52.4 percent, accounting for 15.6 percent of group revenues for the yr. Travel retail also continued to be a driver, with its sales up 25.3 percent.
In early February 2020, L’Oréal announced plans to divest the Roger & Gallet brand to French investment holding concern Impala after a strategic review. A deal is anticipated to be accomplished this summer.
2. UNILEVER
LONDON/ROTTERDAM, THE NETHERLANDS
2019 BEAUTY SALES:
$22.49 Billion (EST.)
€20.1 Billion (EST.)
+6% VS. 2018 (EST.)
MAIN BRANDS:
BEAUTY & PERSONAL CARE: AHC, Axe/Lynx, Clear, Dollar Shave Club, Dove, Dove Men+Care, Lifebuoy, Love Beauty and Planet, Lux, Nexxus, Pond’s, Rexona/Sure/Degree, Schmidt’s Naturals, Shea Moisture, Easy, Skinsei, St. Ives, Suave, Sunsilk/Seda/Sedal, TIGI, TRESemmé, Vaseline, The Right to Shower. Unilever Prestige: Dermalogica, Garancia, Hourglass, Kate Somerville, Living Proof, Murad, Ren Clean Skincare, Tatcha.
Key Financials:
Beauty & Personal Care division revenues:
€21.87 billion, +6% (underlying sales growth: +2.6%, underlying volume growth: +1.7%)
Division operating profit:
€4.52 billion, +8.5%
Total company revenues:
€51.98 billion, +2%
Operating profit:
€8.71 billion, -31.1%*
Net profit:
€6.0 billion, -38.4%*
* After restatement of 2018 profits on account of a change in accounting standards.
Following Alan Jope’s promotion as chief executive officer of Unilever on Jan. 1, 2019, the corporate named Sunny Jain as president of its Beauty & Personal Care division, effective in June. Jain was previously head of Amazon’s Core Consumables business unit, which incorporates the wonder and personal-care categories, and before that spent greater than 16 years at Procter & Gamble.
On the time of his nomination, Jope described Jain’s background as “unique” in that it combines consumer goods, online retail and an understanding of the wonder market. “It makes him exceptionally well-suited to assist us deliver our growth ambitions for our Beauty & Personal Care division,” he stated.
For Unilever’s beauty activity, the deodorant category grew well, supported by double-digit growth from Dove and powerful performance from Rexona Clinical Protection, which has patented anti-perspirant technology. Skin cleansing was hampered by price reductions, although Dove did well with products targeting the skin microbiome, while hair care suffered from competition within the U.S. market and in China, where continued pressure from local players negatively impacted sales. In skincare, Pond’s and Vaseline performed well, partly due to innovations including Pond’s Glow Up cream, a skin-care/makeup hybrid. Easy expanded into underpenetrated markets.
The corporate continued to broaden its portfolio in keeping with growing demand for natural beauty. Love Beauty and Planet, introduced in North America in 2018, expanded into latest categories and launched in chosen markets in Europe, Asia and Latin America. St. Ives, Easy, and Love Beauty and Planet joined Dove in becoming PETA certified cruelty-free.
Unilever’s prestige brands—with total sales of roughly €600 million—continued to see double-digit growth, with Dermalogica, Hourglass and Living Proof performing particularly well, in line with the corporate.
Unilever continued to expand its prestige portfolio, adding French dermocosmetics brand Garancia in April, strengthening its business within the pharmacy channel, and acquiring 95 percent of U.S.-based Tatcha, a line built around Japanese skin-care rituals, for near $500 million in July.
In October, the corporate acquired 70 percent of Japanese premium skin-care brand Lenor, expanding its portfolio in Japan and China, for an undisclosed sum.
Unilever Ventures, the corporate’s investment vehicle, took stakes in clean makeup start-up Saie Beauty and Australian skin-care brand Dr Roebuck’s, and contributed to an investment round in coconut-based beauty line Kopari.
In addition to naming Jain to move the wonder activity, Unilever continued to reshuffle its top management with a view to develop into a “faster, leaner and more agile” group, with Nitin Paranjpe, formerly president of the group’s Foods & Refreshment arm, being named chief operating officer, effective in May, and a changing of the guard for several of its senior regional heads. Marjin Dekkers stepped down from his role as chairman of Unilever’s board in November, with non-executive director Nils Andersen taking over the position. Richard Slater joined the firm as chief research and development officer in April 2019, leading its R&D activity for beauty and private care globally. Fabian Garcia, former president and ceo of Revlon, was named president of Unilever North America, and Conny Braams, previously vice chairman of Unilever Middle Europe, took on the brand new role of chief digital and marketing officer as the corporate goals to ramp up its digital prowess. Each changes took effect on Jan. 1, 2020.
Unilever also ramped up its sustainability commitments, promising to halve its use of virgin plastic by 2025 by reducing the quantity of fabric it uses by greater than 100,000 tons and participating in initiatives to enhance recycling, including waste management infrastructure. Under Dove, the firm announced that it could be introducing one hundred pc post-consumer recycled plastic bottles where technically feasible across all of its ranges, and proceed to hunt solutions for parts that can’t currently be constructed from recycled plastic, including caps and pumps. Unilever’s Sustainable Living brands grew 69 percent faster than the remainder of the business and delivered 75 percent of the corporate’s total growth.
3. THE ESTÉE LAUDER COS.
NEW YORK
2019 BEAUTY SALES:
$15.9 BILLION (EST.)
+12% VS 2018 (EST.)
MAIN BRANDS:
Estée Lauder, Aramis, Clinique, Prescriptives, Lab Series, Origins, MAC, Bobbi Brown, Tommy Hilfiger, Kiton, La Mer, Donna Karan Recent York, DKNY, Aveda, Jo Malone London, Bumble and bumble, Darphin, Michael Kors, Tom Ford Beauty, Smashbox, Ermenegildo Zegna, Aerin, Tory Burch, Rodin Olio Lusso, Le Labo, Editions de Parfums Frédéric Malle, Glamglow,
By Kilian, Becca, Too Faced, Dr Jart+, Do The Right Thing.
KEY FINANCIALS (EST.):
Constant-currency sales growth: +14%
Skin-care sales:
$6 billion, +22%
Makeup Sales:
$5.7 billion, +5%
Fragrance Sales:
$1.8 billion, +2%
Hair-care Sales:
$585 million, flat
Top markets:
The U.S.: 23%
China: 14%
The U.K.: 6%
The Estée Lauder Cos. continued a robust growth streak through 2019, wrapping up the yr with a 12 percent increase in overall sales, a latest skin-care acquisition and gains across each big and small brands.
Chief executive officer Fabrizio Freda attributed the corporate’s consistent increases to Lauder’s “multiple engines of growth” and 10-year compass strategies, which emphasize business diversification and honing in early on beauty trends. Sales were particularly strong in China, pre-coronavirus, in travel retail and in skincare all year long. North America
continued an already-established slowdown.
In China, Lauder continued to propel brands via the Tmall platform. Top performers included Tom Ford Beauty and Jo Malone London, which drove strong sales upon launch.
Online sales for the corporate grew broadly, to $2.6 billion in net sales in 2019. Lauder’s e-commerce business is now energetic in greater than 50 countries, with over 300 brand.com sites.
In step with the remainder of the wonder world, in 2019, Lauder saw strong gains in skincare—up 22 percent for the calendar yr, versus 2018. Several brands drove sales, including Estée Lauder, which has created a thriving franchise around Advanced Night Repair and in addition saw strong sales around Re-Nutriv and Micro Essence, and La Mer, which gained broadly. Clinique and Origins drove skin-care gains via moisturizers.
Towards the tip of the yr, Lauder made its first acquisition in Asia with the acquisition of the remainder of Korean skin-care business Have & Be Co., which owns Dr Jart + and Do The Right Thing. The deal, which adds one other skin-care brand to Lauder’s lineup, valued the business at $1.7 billion, and followed Lauder’s 2015 minority investment in the corporate. Executives have expressed interest in expanding the brands in additional channels and geographies. Also on the M&A front, Lauder sold the wonder license for Tory Burch to Shiseido, effective Jan. 1, 2020.
Makeup sales, which fell off a cliff within the U.S., were capable of gain globally, by 7 percent through the yr. That was driven by Estée Lauder’s Double Wear line, Tom Ford, Bobbi Brown and La Mer. Lauder ended up taking a $777 million impairment charge for Too Faced, Becca and Smashbox—all acquired brands—based on declines within the makeup category.
In hair, which stays the fastest-growing category in U.S. prestige beauty, but one which has not taken off globally, Aveda saw strong gains and has recently expanded into Brazil. Fragrance sales also gained, due to brands like Tom Ford and Jo Malone London.
Travel retail remained a top channel for Lauder through the yr. There, the firm’s strategy includes leveraging local market investments in product innovation, marketing and promoting to appeal to consumers that know they plan to buy.
Looking forward, Lauder is projecting low to no growth within the near term, based on the results of the coronavirus, which is affecting sales in China
and travel retail, two of the corporate’s biggest sales drivers.
4. PROCTER & GAMBLE
CINCINNATI, OHIO
2019 BEAUTY SALES:
$13.9 BILLION (EST.)
+5.1% VS. 2018 (EST.)
MAIN BRANDS:
Aussie, Hair Food, Head & Shoulders, Herbal Essences, Pantene, Rejoice, VS, Walker & Co. (hair care). First Aid Beauty, SK-II, Snowberry (skincare). Olay (skin and body care). Old Spice (hair and body care, deodorant). Gillette (body care, deodorant). The Art of Shaving, Ivory, Safeguard (body care). Native, Secret (deodorant).
KEY FINANCIALS:
Organic growth: +8%
Procter & Gamble’s beauty sales gained in 2019, due to continued growth of megabrand SK-II, acceleration of Olay in China and the U.S., and the turnaround of the hair-care portfolio.
Alex Keith, who was already leading the wonder segment inside P&G, was promoted to chief executive officer of P&G Beauty in mid-2019, making her the
only female ceo of a Top 20 beauty company within the WWD Beauty Inc Top 100.
Through the yr, SK-II continued as a sales powerhouse—the brand has now posted 20 consecutive quarters of double-digit sales gains, and analysts estimate it’s approaching $3 billion in annual sales, making it a serious player in beauty broadly, not only at P&G. In 2019, SK-II sales were driven by growth in travel retail, China and continued expansion within the U.S.
Olay, which underwent a serious revamp in 2016, is on its third yr of worldwide growth, due to China, where it had a very successful Singles Day. Within the U.S., latest launch Retinol 24 has done well, as have Olay Whips moisturizers, introduced in 2018.
P&G’s hair portfolio posted its best sales growth in nearly a decade, with increases driven by the corporate’s largest market—the U.S. P&G also made gains in China, which it attributed to innovation and marketing efforts. In Europe, the hair business grew within the mid-single digits.
Pantene brought several on-trend products to the market, including the sulfate-free Rose Water franchise within the U.S., and Hair Biology in Europe. Herbal Essences further solidified its positioning within the natural space through partnerships with the Environmental Working Group, the Royal Botanic Gardens, Kew and a PETA Cruelty-Free certification.
P&G Beauty didn’t make any beauty acquisitions in 2019, however the larger organization clearly demonstrated interest within the wellness category with the acquisition of That is L, which makes organic tampons.
While there have been no latest beauty brands added via acquisition, P&G Beauty did incubate and launch several of its own brands, including My Black Is Beautiful, a hair brand for natural hair sold at Sally Beauty, and Waterless, a care and styling line meant for use without water.
The firm also expanded several of its previous acquisitions, including Native, First Aid Beauty and Walker & Co., into latest products and channels. Through the yr, Native, a direct-to-consumer deodorant and personal-care business that P&G bought in 2017, expanded inside brick-and-mortar retail with Goal, Walmart and Walgreens. The business heads into 2020 with latest leadership—founder Moiz Ali has left the business, and P&G veteran Vineet Kumar has stepped up as ceo with plans to grow Native to $1 billion in global sales.
P&G got behind several branded charitable initiatives through the course of the yr, including Secret’s mission for girls’s equality and shutting the gender pay gap. The brand donated tens of millions of dollars to the cause, a P&G spokeswoman said, including a $529,000 donation to the U.S. Women’s National Soccer Team. In Japan, Pantene launched a campaign called #HairWeGo meant to beat hair conformity, which resulted in 139 Japanese corporations pledging to stop demanding hair uniformity in job applicants.
5. SHISEIDO
TOKYO
2019 BEAUTY SALES:
$10.09 BILLION (EST.)
¥1.1 TRILLION (EST.)
+3.5% VS. 2018 (EST.)
MAIN BRANDS:
Shiseido, Clé de Peau Beauté, BareMinerals, Nars, Laura Mercier, Ipsa, Shiseido Skilled, Elixir, Maquillage, Anessa, Za, Aupres, Urara, Pure & Mild, Tsubaki, Sea Breeze, Senka, Ettusais, Drunk Elephant. Fragrance: Dolce & Gabbana, Issey Miyake, Narciso Rodriguez, Elie Saab, Zadig & Voltaire, Serge Lutens.
KEY FINANCIALS:
Total sales:
¥1.13 trillion, +3.4%
(+5.7% at constant currency, +6.8% like-for-like)
Japan:
¥451.59 billion, -0.6%
China:
¥216.24 billion, +13.3%
Remainder of Asia-Pacific:
¥69.84 billion, +2.5%
The Americas:
¥124.32 billion, -5.6%
EMEA:
¥118.42 billion, +4.6%
Travel retail:
¥102.2 billion, +16.6%
Skilled sales:
¥14.69 billion, +3.8%
Operating income:
¥113.83 billion, +5.1%
Net income:
¥73.56 billion, +19.8%
Despite complex conditions in lots of its markets, Shiseido continued to register sales increases, driven by its prestige brands, gains in China and travel retail, and a method specializing in its core skin-care expertise at home.
President and chief executive officer Masahiko Uotani, who has shaken up the corporate’s corporate culture since he took on the role in 2014, saw his term renewed for an additional five years, until 2024, on the back of his results, by which the corporate met its “Vision 2020” strategic plan ahead
of schedule.
Shiseido continued to pay attention marketing investment on its prestige brands and made-in-Japan products, improving profitability within the Americas and EMEA, and invested more heavily in digital marketing and innovation. Other areas of focus included constructing production capacities—a latest factory in Nasu, its first in 36 years, opened in November and a latest global innovation center in Yokohama began operations in April.
In one among beauty’s buzziest M&A moves of the yr, Shiseido Americas snapped up clean skin-care brand Drunk Elephant in November for $845 million. The acquisition is anticipated to further strengthen and expand the corporate’s prestige skin-care business and construct its revenues within the Americas. It also entered a worldwide licensing agreement for Tory Burch in August, which took effect from Jan. 1, 2020. Each moves are expected to further expand Shiseido’s global footprint.
Despite the difficult market context, Shiseido registered sales gains in 2019. In Japan, economic conditions continued to recuperate moderately on account of employment and income gains, although a consumption tax hike in October and natural disasters dampened consumer spending. Domestic demand from inbound tourists remained firm because the firm ramped up its cross-border marketing activities in Asia, although sales were negatively impacted by a stronger yen and the enactment of a latest e-commerce law in China. Ultimune serum and Shiseido-branded foundations grew well.
Internationally, China and the remainder of Asia were negatively impacted by aspects including the social climate in Hong Kong, although growth within the region remained firm overall. In China, prestige brands Shiseido, Clé de Peau Beauté, IPSA and Nars gained, and Chinese e-commerce sales grew due to stronger collaborations with local online platforms and digital marketing initiatives.
In the remainder of Asia-Pacific, Laura Mercier and Clé de Peau Beauté performed well, and Elixir, Anessa and Dolce & Gabbana saw significant gains. Conditions were tough in South Korea on account of a changing market, while in Southeast Asia, the firm performed well on the back of boutique expansion and increased marketing investment.
Within the Americas, Shiseido and Dolce & Gabbana continued to grow, although the weak makeup market negatively impacted sales overall. Shiseido continued its restructuring of BareMinerals, including the closure of unprofitable boutiques.
In Europe, the Middle East and Africa, Dolce & Gabbana and Narciso Rodriguez gained due to the strong performance of recent products, while Shiseido performed well in makeup and Nars continued to grow. Clé de Peau Beauté opened a boutique in London in October and plans to proceed expanding in Europe.
Travel retail, a key area of focus, continued to grow strongly, largely due to increasing passenger numbers in Asia. Increased promotional activity in airports all over the world resulted in strong growth for Shiseido, Clé de Peau Beauté, Nars and Anessa, especially in South Korea, China and Thailand. IPSA and Elixir expanded their presence within the channel through the yr.
The corporate also made progress in accelerating its corporate social responsibility activities. It established a latest “social value creation division” with the intention to speed up value creation with reference to the environment, society and culture. Separate departments inside the division are working on environmental activities, the empowerment of girls and gender equality, and company culture.
6. COTY INC.
NEW YORK
2019 BEAUTY SALES:
$8.65 BILLION (EST.)
-4.5% VS. 2018 (EST.)
MAIN BRANDS:
LUXURY:
Calvin Klein, Hugo Boss, Marc Jacobs, Chloé, Balenciaga, Bottega Veneta, Alexander McQueen, Davidoff, Miu Miu, Lacoste, Stella McCartney, Tiffany & Co., Joop!, Jil Sander, Roberto Cavalli, Escada (prestige fragrance). Philosophy (skincare, fragrance). Lancaster (skincare). Gucci, Burberry (fragrance, color cosmetics).
CONSUMER BEAUTY:
CoverGirl, Rimmel London, Max Factor, Bourjois, Manhattan (color cosmetics). Sally Hansen, Risque (nail products). Clairol, Wella Koleston, Biocolor (retail hair color). Adidas, Cenoura & Bronze, Paixão, Bozzano, Monage (body care). Bruno Banani, Katy Perry, David Beckham, Nautica (mass fragrance).
PROFESSIONAL BEAUTY: Wella Professionals, System Skilled, Sebastian Skilled, Nioxin, Londa Skilled, Kadus Skilled, Clairol Skilled, Sassoon Skilled, Wella Color Charm (skilled hair care). OPI (nail products). Ghd (stylers).
KEY FINANCIALS:
Luxury Beauty net sales:
$3.3 billion (EST.) flat
Consumer Beauty net sales: $3.5 billion
(EST.) -10.3%
Skilled Beauty
Net sales:
$1.8 billion (EST.), flat
In its first full yr under the relatively latest leadership of chief executive officer Pierre Laubies—whose exit after 18 months within the role was announced in February 2020—and Pierre André Terisse, chief financial officer, Coty Inc. unveiled a turnaround plan, bought a majority stake in Kylie Cosmetics, made the choices to sell its skilled division and move the corporate headquarters to Amsterdam.
So far as the turnaround goes, the plan was relatively straightforward from a financial perspective, and centered on improving profit margins and paying down debt. It also includes softer points, like restructuring certain teams and moving executives around—Edgar Huber became president of Americas and Asia-Pacific; Gianni Pieraccioni became president of Europe, the Middle East and Africa; Fiona Hughes took the helm as president of the buyer beauty segment; Simona Cattaneo was appointed president of the posh division. Large efforts at the moment are focused on just a few top brands as an alternative of all brands.
Because it tends to go together with Coty, to date, the outcomes have been mixed.
Executives touted 130 basis point gross margin improvement and “green shoots” in the buyer beauty division that appeared through the fourth quarter of its fiscal yr. On the ownership side, Coty majority owner JAB increased its stake from about 40 to 60 percent, which Wall Street analysts took as a very good sign.
The patron division, which has been suffering from shelf space losses and general disinterest within the mass channel since Coty took it over from Procter & Gamble in 2016, continued to be the issue child. A CoverGirl re-brand gone awry was rerouted back to the brand’s core consumers in 2019, leading to what executives termed “progress,” while Clairol, one other struggler, is anticipated to be sold as a part of the skilled division divestment.
Through the yr, Coty also shed Younique, by which it had bought a 60 percent stake in 2016 under then-ceo Camillo Pane. That exit got Coty out of the peer-to-peer selling model.
With that handled, Coty turned to its other business units, and ultimately decided to sell the skilled division, which has been relatively stable. In a new-ish move, Coty looked to an out of doors banker, Credit Suisse, to handle the sale, which is claimed to have attracted interest from most large private equity firms, in addition to strategic buyers. An exit is anticipated to be finalized midway through 2020. As a part of that deal, Coty can also be evaluating options for the Brazilian business acquired under former ceo and chairman Bart Becht.
On the acquisition front, Coty became the primary strategic acquirer to purchase in—literally—to an influencer brand with the acquisition of a majority stake in Kylie Cosmetics. First reported by WWD in June, officially announced in November, and closed in January 2020, Coty is now the 51 percent owner of Kylie Cosmetics, and has plans to expand the brand’s skin-care and makeup offerings. Other acquisitions are possible, but would want to fall inside Coty’s core competencies, executives have said.
In March 2020, Coty unveiled that after the sale of the skilled division is concluded, Laubies will step aside as ceo, and Pierre Denis, the ceo of Jimmy Choo, will take the helm. The news got here as a surprise to employees and analysts, but unlike his predecessors, Denis brings beauty experience into the business. He’s tasked with accelerating sales in 2020 and beyond.
7. LVMH MOËT HENNESSY LOUIS VUITTON
PARIS
2019 Beauty Sales:
$7.65 Billion (EST.)
€6.84 Billion (EST.)
+12.2% VS. 2018 (EST.)
Predominant Brands:
Parfums Christian Dior, Guerlain, Parfums Givenchy, Parfums Kenzo, Fendi, Pucci, Acqua di Parma, Parfums Loewe, Profit Cosmetics, Make Up For Ever, Fresh. Maison Francis Kurkdjian (majority stake). Kendo Brands: Bite Beauty, Kat Von D, Marc Jacobs Beauty, Ole Henriksen, Fenty Beauty by Rihanna; Bulgari; Louis Vuitton; Sephora.
Key Financials:
Organic sales growth:+9%
LVMH Perfumes and Cosmetics division revenue breakdown by region:
France 10%, remainder of Europe 20%, U.S. 15%, Japan 5%, Remainder of Asia 40%, Other markets 10%.
Perfumes and Cosmetics Division make the most of recurring operations:
€683 million, +1%
Variety of branded beauty stand-alone stores:
426, +20.3%
LVMH’s beauty activity was spurred by the momentum of its historic brands and what it described as “surging demand” in Asia, notably in China. The division’s operating profit was nonetheless impacted by expenses related to investment in product development under its younger brands.
The yr also saw a serious management reshuffle for the corporate’s beauty activity. After 19 years on the helm of flagship brand Parfums Christian Dior, where he’s credited for having built the business into the jewel within the crown of LVMH’s beauty activity, Claude Martinez was named managing director of LVMH Perfumes and Cosmetics in late 2019, with oversight of Guerlain, Parfums Givenchy and Parfums Kenzo, in addition to Dior’s beauty activity. Laurent Kleitman, who had been president of Coty’s consumer beauty activity since 2017, before which he was executive vice chairman of worldwide hair care at Unilever, was named president and chief executive officer of Parfums Christian Dior, effective Nov. 6, 2019.
Guerlain also saw a change in leadership, with Véronique Courtois taking up the ceo reins from Laurent Boillot, who was named ceo of Hennessy, on Nov. 1. Christie Fleischer, previously head of worldwide consumer products at Netflix, was named ceo of Profit. Kendo promoted Kristin Walcott to president and Heather Fisher to senior vice chairman of worldwide marketing, effective early in 2020. At Sephora, Brooke Banwart was named vice chairman and general manager for private-label line Sephora Collection, effective February 2020.
As for 2019 business drivers, Dior was boosted by flagship lines and innovation, with Joy rolling out internationally. Launched in 2018, it’s now the third best-selling fragrance worldwide, in line with LVMH. Miss Dior, J’Adore and Sauvage also grew, as did high-end line Maison Christian Dior. In makeup, Rouge Dior lipstick and latest launch Dior Addict Stellar Shine did well, and Dior Backstage, inspired by the style show universe, gained traction and generated social media buzz. The brand’s skin-care business was driven by Asia.
China became the number-one market globally for Guerlain, which performed well overall, driven by boutiques and online. The brand enhanced its sustainability discourse, introducing a transparency platform online that offers consumers access to details about how each product is created and the suppliers. Guerlain also partnered with UNESCO to assist repopulate bee colonies all over the world.
Parfums Givenchy was bolstered by China and travel retail, notably due to Le Rouge lipstick and Prisme Libre powder; latest fragrance L’Interdit was a serious success in Europe. Kenzo was driven by latest flanker Flower by Kenzo Eau de Vie, while Profit boosted its position within the U.S. and U.K. markets. Fresh saw strong demand in China and online. Fenty Beauty by Rihanna added latest categories, including concealers available in 50 shades, and commenced expanding into Asia. The brand stays a social media hit. Acqua di Parma reopened its Milan flagship with a latest concept, while Loewe re-branded, aiming to present a younger image and goal a global audience. Maison Francis Kurkdjian saw success with Baccarat Rouge 540 and the launch of Gentle Fluidity. Ole Henriksen expanded within the U.S. and was boosted by the recognition of its Banana Vibrant range amongst young consumers there.
8. BEIERSDORF
HAMBURG, GERMANY
2019 Beauty Sales:
$6.71 BILLION (EST.)
€6 BILLION (EST.)
+6.5% VS. 2018 (EST.)
Predominant Brands:
Nivea, Eucerin, La Prairie, Labello, 8×4, Hidrofugal, Florena, Atrix, Aquaphor, Maestro.
Key Financials:
Consumer Division sales: €6.27 billion,
+6.5% (organic sales growth: +4.8%)
Consumer Division sales by region:
Western Europe:
€2.42 billion,
+2.7% (+2.2% organic)
Eastern Europe:
€609 million, +3.8%
(+3% organic)
North America:
€497 million, +12.4% (+3.8% organic)
Latin America:
€648 million, +6.3%
(+6.4% organic)
Africa/Asia/Australia:
€2.1 billion, +10.8%
(+8.4% organic)
Consumer division EBIT excluding special aspects:
€896 million, -0.8%
In the primary yr of its latest corporate strategy dubbed the “C.A.R.E.+” program, which involves a €70 million-to-€80 million investment for its consumer business unit to pursue latest markets, innovation, digitalization and up-skilling, Beiersdorf saw strong sales growth for its beauty business.
Recent ceo Stefan De Loecker took up his role on Jan. 1, 2019, the beginning of heightened activity for the corporate. The yr was marked by the acquisition of the Coppertone brand from Bayer for $550 million, tapping more widely into the U.S. sun-care market—the world’s largest—and reinforcing Beiersdorf’s place because the world’s largest player within the segment. The buyout was the primary major milestone in the brand new strategy and was finalized in August.
The firm also took a major stake in South Korean data-driven skin-care and tech start-up LYCL Inc. via its enterprise fund. The move is a component of Beiersdorf’s latest technique to win within the skin-care category and develop into more consumer-centric via digitalization, and further strengthens its footprint in South Korea and the remainder of Asia.
It also created its own corporate indie brand unit, named Oscar&Paul after the corporate’s founders, with a view to consolidate latest approaches to innovation internally. The 8×4, Labello and Hidrofugal brands can be managed under the brand new division, which also serves as an innovation cell for brand spanking new concepts.
The primary of those is a latest skin-care brand dedicated to tattooed skin, Skin Stories, Beiersdorf’s first brand launch in greater than 30 years. As a part of the launch, the brand also created the Expert Circle, a think tank for tattooing. The brand, with 4 products, launched at retail and in tattoo salons in late September.
In October, Florena Fermented Skincare launched in France and Italy, marking the firm’s entrance into the natural cosmetics segment. Nivea Naturally Good, based on 98 percent natural ingredients, also hit the market.
Chinese hair-care brand Slek, meanwhile, was divested to local company Mengxing Zhiyuan Group, offsetting the positive effective of the acquisition of Coppertone on sales.
In organic terms, Nivea increased its sales by 3 percent, driven by the deodorant, skin- and body-care categories. Eucerin and Aquaphor grew by 7.5 percent thanks notably to business within the U.S., Germany, Asia and South America. La Prairie’s revenues increased by 20 percent in organic terms, largely due to Asian travel retail, China and Australia, even though it saw declines in Hong Kong and in domestic markets in Europe.
Business in Europe was boosted by strong sales in Germany and the continued outperformance of La Prairie in travel retail. Within the Americas, gains were strong in Brazil and Mexico. Eucerin entered Russia and opened an internet shop on Tmall in China.
Beiersdorf ramped up its sustainability commitments, becoming a founding member of the Motion for Sustainable Derivatives initiative with the aim of driving motion on the sustainable sourcing and production of palm oil. In September, Beiersdorf joined the Global Shea Alliance, committing to support 10,000 shea collectors over five years in Ghana and Burkina Faso.
The corporate invested in production capability, including injecting €55 million in expanding a factory in Spain. It also expanded its facilities in India, Thailand and Brazil and established two latest subsidiaries, in Israel and Myanmar. Plans were announced to speculate €10 million in a latest skin-care innovation center in Shanghai, which is able to develop into the firm’s R&D hub for East and Northeast Asia.
9. CHANEL LTD.
LONDON
2019 Beauty Sales:
$6.66 BILLION (EST.)
€5.95 BILLION (EST.)
+8% VS. 2018 (EST.)
MAIN BRANDS:
Chanel No.5, Gabrielle Chanel, Allure, Allure Sensuelle, Coco, Coco Mademoiselle, Coco Noir, Probability, Probability Eau Fraîche, Probability Eau Tendre, Probability Eau Vive, No.19, Cristalle, Allure Homme, Allure Homme S, Allure Homme Edition Blanche, Bleu de Chanel, Pour Monsieur, Antaeus, Egoiste, Platinum Egoiste, Les Exclusifs, Les Eaux de Chanel (fragrance). Sublimage, Blue Serum, Le Lift, Hydra Beauty, CC Cream, Le Blanc (skincare). Rouge Allure, Rouge Coco, Le Vernis, Inimitable, Le Volume, Dimensions, Les 4 Ombres, Ombre Première, Les Beiges, Vitalumière, Le Blanc, Le Teint Ultra, Sublimage, Joues Contrastes (makeup).
Key Financials:
Predominant markets:
The U.S., China and Japan represented an estimated 35% of 2019 sales.
Chanel’s 2019 was marked by the lack of its legendary longtime creative director, Karl Lagerfeld, who passed away in February after 36 years within the role. As for its beauty activity, Chanel registered growth in every category and region, with its strongest results coming from Asia and skincare.
Chanel’s skincare, its fastest-growing business of the yr, was particularly strong in Asia. La Mousse, Sublimage, a latest Le Lift serum and hand creams all continued to perform well. In fragrance, the Probability master-brand, helped by the launch of Probability Eau Tendre Eau de Parfum, and Bleu de Chanel Parfum, drove growth. The segment performed particularly well in Asia and Europe. Gabrielle Essence launched in Europe, the U.S. and the U.K., with a campaign fronted by Margot Robbie. Makeup was driven by lip products, including the brand new Rouge Coco Flash lipstick line and the Rouge Allure franchise, and growth in China. Les Beiges Eau de Teint, a patented revolutionary foundation with micro-droplet pigment technology, launched in early 2019.
The privately owned firm continued to ramp up its stand-alone retail and e-commerce footprints. It launched 11 latest e-commerce sites in Northern and Eastern Europe in November, in addition to a beauty e-commerce platform on Tmall for China. In brick-and-mortar retail, the brand opened a revamped beauty flagship on Paris’ Avenue des Champs-Elysées and an interactive Atelier de Beauté in Recent York’s SoHo.
10. L BRANDS
COLUMBUS, OHIO
2019 BEAUTY SALES:
$6.5 BILLION (EST.)
+9% VS. 2018
MAIN BRANDS:
Bath & Body Works: Signature Collection (fragrance, body care), Aromatherapy, Water, CocoShea, Bath Fizzies, Face Masks (body care). Men’s Collection (fragrance, body care). Hand Soaps, Hand Cream (hand care).
Victoria’s Secret:
Victoria’s Secret Bombshell, Victoria’s Secret Bombshell Seduction, Victoria’s Secret Love, Victoria’s Secret Heavenly, Victoria’s Secret Very Sexy, Victoria’s Secret Tease, Victoria’s Secret Eau So Sexy, Victoria’s Secret Crush, Victoria’s Secret Very Sexy for Him, Victoria’s Secret Very Sexy for Him Platinum, Victoria’s Secret The Mist Collection (fragrance mists and lotion), Victoria’s Secret Velvet Matte Lip Collection, Victoria’s Secret Total Shine Addict Gloss Collection, Victoria’s Secret Get Gloss Collection, Victoria’s Secret Angel Edit (makeup).
KEY FINANCIALS:
Total company sales
(Yr ended Feb. 1, 2020):
$12.91 billion, -2.4%
Bath & Body Works sales: $5.17 billion, +10%
Victoria’s Secret sales:
$6.81 billion, -7%
Victoria’s Secret’s estimated beauty sales were approx. $1.02 billion
With a ten percent increase in sales, Bath & Body Works was the intense spot for L Brands in 2019, while Victoria’s Secret faced continued problems with behind-the-times product and messaging. In an age of body positivity and variety embraced by brands from Savage by Fenty to ThirdLove or Aerie, Victoria’s Secret stuck to sexy messaging—and it showed by way of the corporate’s sales, which plummeted. The problems were compounded by then-chairman Leslie Wexner’s ties to convicted sex offender Jeffrey Epstein.
In early 2020, L Brands made a deal to sell a 55 percent stake in beleaguered Victoria’s Secret to personal equity firm Sycamore partners for $525 million. As a part of that transaction, Wexner, L Brands’ chairman, stepped aside and was later replaced by Sarah Nash.
Beauty sales at Victoria’s Secret deteriorated in 2019, all the way down to just over $1 billion.
Things were much brighter at Bath & Body Works, which was slated to be spun into its own public company within the second quarter of 2020 before the worldwide coronavirus pandemic.
For the yr, the business grew sales to just about $5.2 billion, with about $4.2 billion in stores and $958 million direct. Bath & Body Works continued to open stores in 2019, including in Canada and in travel retail corridors.
The corporate’s international business grew by about 20 percent through the yr, L Brands executives said on an organization earnings call, to about $400 million in retail sales. Bath & Body Works had about 266 international stores at the tip of the fiscal yr, with 1,739 Bath & Body Works-owned stores total. The business has benefited from continued newness, and launched latest fragrances that resonated with Bath & Body Works’ loyal shoppers.
*CURRENCY CONVERSIONS: Sales figures in non-U.S. currencies were converted to the dollar using the next 2019 average exchange rates from Oanda.com:
1=$1.119022; ¥1=$0.009174; £1=$1.276639; 1 KRW=$0.000857; 1 Ruble=$0.015464; R$1=$0.253597; CNY 1=$0.144772; 1 Rupee=$0.014198; 1 SFr=$1.006015; 1 HK$=$0.127620; 1 C$=$0.753791.
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