about-face beauty’s Post

Solid reporting today from Erica La Sala in Beauty Independent drilling into Ulta's recent earnings and specifically, its loss of market share YTD in prestige beauty. Ulta's CEO points to cannibalization from 1,000 new prestige points of sale around the country but has a clear plan to win back and fortify market share, although not much was said about the in-store experience which could be a miss. With Amazon growing it's Prestige assortment and TikTok Shop increasingly relevant, shoppers need a reason to make the trip to the store and specifically to Ulta. An important piece of that comes in the form of increased EMV, as consumers are discovering and learning about brands on social. The portfolio of brands carried also drives interest (or not) in the retailer, particularly for younger consumers. Ulta's Spark program has introduced fantastic exclusive brands to its assortment, and leaning into this -- with an assortment that is differentiated and compelling enough to make consumers choose Ulta over another channel -- will be key in winning back market share. Related, it seems to me that Ulta is not getting its fair share of mind among consumers -- Sephora's insane growth in EMV, driven by fervent consumers, the Sephora Squad and its brand partners, is a masterclass in how to generate excitement and drive shoppers to the store (thank you Erica for including my thoughts on these two points!) I 100% believe this is a blip and that Ulta can win back that market share, and Kimbell has an actionable plan to make it happen. Prestige beauty needs multiple viable channels to address the needs and wants of consumers, and Ulta is a lynchpin in that landscape.

E.l.f. Beauty posted its first billion-dollar fiscal year on Wednesday, growing sales by 77% and further disputing warnings from Ulta that retail’s most resilient category is losing steam. The eyes, lip, face company, known for its viral marketing and prowess in winning over younger consumers, blew past Wall Street’s estimates on the top and bottom line. However, its guidance came in lower than expected, indicating it anticipates its growth will begin to taper. Here’s how E.l.f. Beauty did in its fourth fiscal quarter:

Ulta Beauty shares fell by 15% on Wednesday, with CEO Dave Kimbell citing a decline in demand as the cause. At an investor conference hosted by JPMorgan Chase & Co., Kimbell says the dip was expected after a successful holiday season and strong financial performance throughout 2023. Ulta wasn’t the only beauty company to take a hit: E.L.F. BEAUTY, Estée Lauder, and Coty stocks also dropped on Wednesday, demonstrating a marketwide decline. The slowdown in the beauty category, as stated by Kimbell, aligns with the recent findings from McKinsey & Company. that indicate that consumers intend to reduce spending on makeup and skincare due to perceived high pricing in these categories. Story by Cristina Montemayor. #beautyindustry #beautybusiness #beautymarket #finance #retail

It's time to embrace A.I. beauty tech! By leveraging Eve V skin analyser's advanced product recommendation algorithm, we can guide consumers to the perfect skincare products and treatment plans. Let's not just spend less, but let's spend right. #BeautyTech #AIBeauty #EveV #SkinAnalyser #SkincareTech #SmartSpending

Excited to reveal the completion of the Shiseido project. A big thank you to our amazing team for their tireless effort and timely delivery! We sincerely thank the Shiseido team for their trust and support throughout this project. #Shiseido #ShiseidoProject #BeautyIndustry #FragranceIndustry #BeautyTech #ManufacturingSuccess #RetailDisplay #RetailInnovation #FragranceSolutions #BeautyManufacturing #retail #retailfixtures #fixture #shoutmarketing

🌐 Exciting News in the Beauty Industry! SalonCentric - A Subsidiary of L'Oreal USA is making strategic moves by making a minority investment in SalonInteractive, expanding their partnership and fostering innovation. 💇♀️💼 Read The Tease to learn more about this dynamic collaboration and its potential impact on the industry. #BeautyBusiness #SalonCentric #SalonInteractive #IndustryPartnership #ReadTheTease 💫🚀

Do all roads lead to retail success for RHODE? That's the question posed by Erica La Sala in today's Beauty Independent series "No Stupid Questions". As Hailey Bieber's beauty brand rhode skin considers its retail strategy, there is speculation around which path the brand will take: Sephora or Ulta? I weighed in, along with 8 other strategists and investors who each offered useful takeaways. No matter which road RHODE takes, it's sure to be a masterclass in marketing and GTM strategy. Karen Hayes Sarah Covill Broyd Tina Henry Bou-Saba Kara La Forgia, Esq. Chelsea Grayson Rohit Banota Paula Floyd Rich Gersten #marketingstrategy #gotomarketstrategy #retailstrategy #Sephora #Ulta #Rhode

🤫 Rumor has it... rhode skin may expand beyond DTC and enter a major retailer this year, most likely #Sephora or #Ulta. Beauty Independent's latest piece by Erica La Sala features beauty leaders speculating on Rhode's move. Check it out in the comments. 🔗 Here's my take 💭 💖 Rhode excels in branding and building love among fans. They've stood out in a sea of celeb-founded brands that flopped. Founder Hailey Bieber has landed among the ranks of Selena Gomez and Marianna Hewitt, in how they leverage their reputations and communities to drive success. 🧩 In simple terms: Brands often enter Sephora to boosts awareness and global reach vs. Ulta to focus on accessibility, sales, and market penetration. Sephora's focus is prestige brands, while Ulta offers a wider breadth, covering mass to masstige to prestige. 💄 Rhode's high-end masstige pricing could lean towards Ulta, but with similar cult-favorite brands' successes at Sephora (Rare Beauty, Fenty Beauty by Rihanna, Summer Fridays), I'd say signs point toward Sephora. 👏 Success at *either* retailer, though, requires strong infrastructure to support the logistical beast that is wholesale, choosing a retailer that will support them (e.g., end-caps, marketing opportunities), and not losing focus on nurturing their existing community. Where will rhode skin land? Drop your guess in the comments 🤔 #rhodeskin #beautyindustry #beautyretailers