** U.S. beauty sector remained under pressure in 2025 due to tariff-led uncertainty, while focus on prestige brands and younger shoppers revived performance of cosmetics maker Estee Lauder EL.N and retailer Ulta Beauty ULTA.O
** Coty COTY.N, Elf Beauty ELF.N and Bath & Body Works BBWI.N logged the biggest decline since 2018
** COTY grappled with slowing demand for its products and rising competition; it also plans on selling its cosmetics business to focus on more profitable fragrance segment, also faces leadership changes
** Elf Beauty struggled with tariff uncertainty, as about 75% of the cosmetics maker’s global production comes from China
** Ulta Beauty up ~39% this year, driven by steady demand from younger shoppers for its affordable, trendy offerings and celebrity-owned brands
** Luxury beauty brand Estee Lauder shares climbed this year driven by its turnaround efforts focused on strong fragrance sales, improving China demand and supply-chain shifts
** Analysts at Jefferies expect "Still, beauty spending is expected to top 2025 levels next year, driven by demand for prestige brands, Jefferies analysts write in a note
** Brokerage also expects the industry to focus on makeup after several years of fragrance taking centerstage
** * S&P 500 Personal Care Products industry sub-index .SPLRCPEPR down 0.7% YTD, while broader S&P 500 .SPX is up 17.3%
Companies | RIC | 2025 YTD | 2024 | 2023 |
Ulta Beauty | ULTA.O | 39.3% | -11.2% | 4.46% |
Coty | COTY.N | -55.6% | -43.9% | 45.% |
Bath & Body Works | BBWI.N | -47.9% | -10.2% | 2.4% |
Elf Beauty | ELF.N | -38.8% | -13% | 161% |
Estee Lauder | EL.N | 41.2% | -48.7% | -41% |
(Reporting by Sanskriti Shekhar and Koyena Das in Bengaluru)
((Sanskriti.Shekhar@thomsonreuters.com))