The US beauty market remains hot! Many retailers performed well in the first quarter!

It is learned that according to foreign media reports, although American consumers have cut spending on non-essential categories, they are still buying cosmetics and beauty products. In the first quarter of 2023, the revenue of the top beauty retailers in the United States increased.

Sue Nabi, CEO of French-American multinational beauty company Coty, said in a first-quarter earnings call that the beauty category is in a strong position due to consumers' increased awareness of self-care, coupled with their ability to purchase it.

In the first quarter, U.S. cosmetics retailer Ulta Beauty saw its net sales rise 12.3%, comparable sales rise 9.3%, and net income rise 4.7%, according to Insider Intelligence.

US cosmetics brand Elf Beauty's net sales surged 78.2% in the fourth quarter, with net income increasing nearly tenfold.

Additionally, Kohl's reported that its beauty sales in the first quarter increased by about 150% year-over-year, driven by Sephora mini stores. The retailer achieved "double-digit" sales growth in beauty products in all 204 stores opened in 2021, and the 400 stores opened in 2022 also exceeded expectations.

Insider Intelligence predicts that as consumer demand for beauty products remains strong, U.S. sales of makeup and beauty products will grow 7.6% in 2023, far exceeding the 3.3% growth rate of the entire retail market.

It is worth noting that while demand in the beauty market is high, there are signs that the macroeconomic environment is affecting consumer behavior.

“Consumers are spending more selectively, driven by inflation, while also demonstrating a willingness to continue to splurge and treat themselves,” Ulta Beauty CEO Dave Kimbell said on an earnings call.

Dave Kimbell also noted that sales of its mass-market products are growing faster than its prestige brands, but he was unclear whether this was due to increased demand for products from brands such as elfBeauty and La Roche-Posay or consumers becoming more price-sensitive.

Looking ahead, Ulta said growth in the beauty category has begun to normalize, and it expects comparable sales to rise 4% to 5% this year, driven by promotional activity.

Editor ✎ Nicole/

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