One Year Into COVID-19 Pandemic, Here’s Where Beauty Company Sales Stand
Beauty companies have started reporting sales for the period ended June 30, one year after the COVID-19 pandemic and retail closures caused sharp decreases for many. For most beauty businesses, sales have improved significantly over 2020 — and for some, they’ve also jumped beyond 2019 levels. Here is a breakdown of beauty earnings so far for the latest quarter.
Beiersdorf AG
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Beiersdorf saw sales jump 12.3 percent in the six months ended June 30, to 3.87 billion euros, with an earnings margin of 15.3 percent. The company has seen a recovery in its consumer segment, as well as growth from La Prairie in China.
E.l.f. Beauty
E.l.f. Beauty saw sales jump 50 percent for the quarter ended June 30, which was driven by sales upticks across product categories, including makeup. Sales for the quarter were up to $97 million, with net income of $8.3 million. The company plans to continue increasing marketing spend, chief executive officer Tarang Amin has said.
Firmenich
For the full year, Firmenich saw sales growth of 10.2 percent, to 4.27 Swiss francs, or $4.67 billion, boosted by a rebound in fine fragrance and acquisitions. Earnings before interest, taxes, depreciation and amortization were up 6.2 percent, to 874 million euros.
International Flavors & Fragrances
IFF’s net sales for the quarter ended June 30 were up 158 percent from the prior year, to more than $3 billion. Net income was $30 million, down 66 percent from the prior-year’s $88 million. The business has implemented price increases as the cost of raw materials continues to rise. The company’s scent division was up 16 percent, year-over-year, to $550 million in sales, due to a rebound in fine fragrances as well as growth in cosmetic actives and fragrance ingredients.
L’Oréal
L’Oréal posted a 29.6 percent sales increase to 7.58 billion euros in the second quarter, which marked a return to the company’s pre-COVID-19 growth rate. Professional Products sales were up 66 percent; Active Cosmetics sales were up 55 percent; Professional sales were up 13 percent, and Luxe sales were up 10 percent. Consumer Products saw a 14 percent year-over-year sales dip.
Procter & Gamble
Procter & Gamble’s sales jumped 7 percent for the fiscal year, to $76.1 billion. Beauty sales jumped 8 percent, to $14.4 billion, driven by innovation and SK-II, and grooming sales were up 6 percent, helped by the continued diversification of product offerings. For the quarter ended June 30, sales were also up 7 percent, to $18.9 billion, with net earnings of $2.9 million.
Revlon
Revlon’s sales showed major improvement for the quarter ended June 30, with net sales up 43.1 percent to $497.4 million. The company narrowed its net loss for the quarter from the prior year, and posted a net loss of $67.7 million. Revlon saw sales growth in every division, including the Revlon brand, Elizabeth Arden, Fragrances and the portfolio division. The company said that Revlon color cosmetics fared better in North America and globally during the quarter.
Sally Beauty
Sally Beauty posted gains for the quarter ended June 30 due to increased consumer demand and the easing of COVID-19 restrictions, the company said. Net sales were more than $1 billion, up 45 percent from the prior-year period, with net earnings of $76 million — a major jump from the $23 million loss the company posted for the quarter in 2020.
Shiseido
Shiseido posted a 17 billion yen net loss for the quarter, due to the termination of its licensing agreement with Dolce & Gabbana. However, the company grew sales in the first half of the year by 21.5 percent, to 507.69 billion yen. Slow growth in Shiseido’s home market of Japan was offset by strong growth in China, the Americas, Europe, the Middle East and Africa.
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