Key Takeaways From Global Beauty’s First-Half Earnings Reports

As financial results from leading global cosmetics and fragrance manufacturers continue to roll out, several overarching operational themes are taking shape that will guide strategic decisions for the beauty industry through 2026.

A review of earnings reports across major beauty groups in nine countries reveals clear operational priorities. With U.S. earnings season in full swing—and companies such as The Estée Lauder Cos., Coty Inc., Bath & Body Works, and Ulta Beauty scheduled to report—industry executives are closely monitoring full-year guidance as a sector barometer, alongside K-beauty's accelerating expansion in North America, sustained momentum in hair care, preliminary recovery signals in China, and regional supply chain adjustments stemming from ongoing Middle East conflicts.

FY 2026 Guidance’s Upsides and Downsides

Among the top ten beauty corporations reporting first-half performance, L’Oréal, LVMH, Puig, and Chanel maintained their full-year guidance targets. Unilever upgraded its annual outlook, while Beiersdorf lowered its performance projections.

Following strong first-half momentum across its personal care and beauty & wellbeing units, Unilever revised its 2026 forecast upward. The group now expects second-half underlying sales growth to land comfortably within the 4 percent to 6 percent range rather than at the lower bound, alongside modest operating margin expansion over 2025's 20 percent baseline. The mixed corporate outlook comes as beauty investors shift focus toward long-term innovation and profitability discipline across key product categories.

German consumer goods group Henkel also raised its top-line forecast, raising full-year organic sales growth guidance to between 1.5 percent and 3.5 percent, up from its prior 1 percent to 3 percent range.

In Asia, Japan's Kao Corp. raised its annual sales projection to 1.8 trillion yen ($10.04 billion) and operating profit guidance to 190 billion yen, up from previous estimates of 1.75 trillion yen and 182 billion yen, respectively.

In the U.S., E.l.f. Beauty remains on track to hit $2 billion in annual revenue. The company raised its full-year fiscal 2027 sales forecast to between $1.93 billion and $1.96 billion, compared to its previous outlook of $1.83 billion to $1.86 billion.

By contrast, Beiersdorf adjusted its outlook downward, pointing to lingering macroeconomic volatility. The company noted in a trading update that while the disciplined execution of the Nivea brand turnaround remains a central strategic objective, implementation measures will require time to fully reflect in brand performance. For its consumer business segment, Beiersdorf now projects a low-single-digit sales contraction, revising down from prior expectations of flat-to-slightly positive organic growth.

Procter & Gamble also issued a conservative forecast, projecting full-year sales growth between 1 percent and 3 percent.

Hair Care Category Thrives

The hair care category continues to deliver elevated growth across price tiers. At L’Oréal, the world's largest beauty company, the Professional Products Division served as a primary growth driver, posting an 11.6 percent gain on an adjusted basis.

L’Oréal Chief Executive Officer Nicolas Hieronimus noted during an analyst call that the company continues to deepen its commitments in hair care as consumer demand grows more sophisticated. He highlighted double-digit gains across key divisions, including Elseve in mass retail, Kérastase in professional channels, and Dercos and CeraVe within dermatological beauty.

At Unilever, hair care registered high-single-digit growth, supported by premium product extensions under Dove, including its "Fibre Repair" line, and strong double-digit expansion from bond-building brand K18.

Recognizing category momentum, E.l.f. Beauty expanded into hair care in June with a six-item lineup priced entirely at $10 or below. E.l.f. Hair debuted on TikTok Shop—reflecting how social commerce channels drive launch momentum, similar to how TikTok Shop's surging beauty sales in international markets are capturing consumer demand—followed by an exclusive retail rollout at Target. CEO Tarang Amin noted that early trial data indicates nearly half of E.l.f. Hair buyers were new to the parent brand, outlining plans to nurture the hair line into a secondary growth engine comparable to E.l.f. Skin.

Hair products also bolstered performance in P&G’s beauty portfolio, where organic sales grew by mid-single digits. Growth was driven by volume gains in Europe and Asia-Pacific, strategic pricing in Latin America, and favorable regional product mix. Meanwhile, Kenvue reported that hair care was a primary driver behind a 5.1 percent sales increase in its skin health and beauty business, led by OGX.

K-Beauty Globetrots

K-beauty brands from South Korea continue to gain retail market share across North America.

For the first time since becoming an independent company in 2001, LG Household & Health Care reported that second-quarter revenue from North America surpassed its total sales in China. LG H&H recorded total overseas quarterly sales of 584.5 billion Korean won ($414 million), up 12.6 percent year-over-year. North American sales surged 47.3 percent to 205.8 billion won, while sales in China contracted 5 percent to 185.3 billion won.

LG H&H's scalp-care brand Dr. Groot entered physical Costco locations in North America in late 2025 and launched across roughly 90 Sephora U.S. stores in June, with plans to expand footprint to more than 400 doors nationwide.

Similarly, Amorepacific Group reported a 56.5 percent surge in second-quarter sales across the Americas, reaching 210.4 billion Korean won. Regional momentum was fueled by sustained demand for CosRx—boosted by its Blue Peptide Bakuchiol launch—and strong sales performance across Aestura’s Atobarrier 365 skin barrier line.

China Redux

Rebound signals in mainland China were highlighted by several global beauty leaders during executive commentary.

L’Oréal CEO Nicolas Hieronimus observed that China's domestic beauty market returned to low-single-digit positive growth during the period, with acceleration concentrated in the premium and luxury tiers.

While China's mass beauty market remains heavily served by domestic brands, Western beauty conglomerates reported incremental gains. Procter & Gamble achieved 4 percent organic sales growth in Greater China for the period, marking its first market share gain in the country in 15 quarters following structural updates to its brand building, distribution systems, and product innovation pipelines.

Colgate-Palmolive CEO Noel Wallace expressed similar confidence, reporting mid-single-digit volume performance from Colgate China despite ongoing channel shifts away from physical retail toward e-commerce and livestreams.

At Interparfums Inc., CFO Michael Atwood noted that while China represents a smaller fraction of the global fragrance market, localized sales registered strong growth during the quarter.

Middle East Impact

While geopolitical instability in the Middle East persists, financial impacts across major operators remained contained during the first half.

L’Oréal reported a second-quarter top-line impact of just over 30 million euros ($34.8 million), concentrated primarily in regional travel retail and Dubai luxury retail doors. Total first-half sales impact was estimated at 14 million euros, representing roughly 0.6 percent of total group revenue, as local retail channels in Israel and Saudi Arabia stabilized alongside regional e-commerce activity.

Puig CEO José Manuel Albesa echoed that sentiment, noting that while travel retail across Middle Eastern transit hubs experienced persistent headwinds, local retail doors demonstrated steady operational recovery.

Conversely, Procter & Gamble maintained its estimate of a $1 billion post-tax impact stemming from Middle East supply disruption. CFO Andre Schulten attributed the ongoing cost pressures to elevated ocean freight rates, logistics surcharges, supplier inflation, and force majeure premiums, noting the financial impact will weigh heavily on the first half of fiscal 2027. Interparfums also reported regional softness, with Middle East and Africa sales declining 24 percent in its second quarter.