If 2025 underscored one clear reality for global retail, it was that beauty continued to outperform, even as consumer confidence remained uneven and discretionary spending came under pressure. Across markets, retailers grappled with rising costs, shifting tourism flows and cautious shoppers, yet beauty and personal care consistently emerged as a stabilising force—supporting margins, driving footfall and, in several cases, underpinning improved outlooks.
In the US, beauty once again proved central to performance at mass and department store level. Ulta Beauty delivered sales growth across multiple quarters, raising its full-year outlook as fragrance, haircare and prestige continued to resonate with consumers seeking both indulgence and everyday value. The retailer’s performance stood in contrast to broader retail softness, reinforcing its position as one of the sector’s most resilient specialty players.
Department stores told a similar story. Macy’s repeatedly lifted its outlook through the year as Bluemercury and Bloomingdale’s delivered strong beauty-led growth, helping offset ongoing pressure in apparel and home. By year-end, management pointed to its strongest quarterly performance in nearly three years, with beauty positioned as a key driver of recovery. Kohl’s, while still navigating declining top-line sales, cited early progress in beauty and personal care as margins improved and confidence in its strategic reset grew.
Elsewhere in US retail, beauty continued to shine even when headline results disappointed. Target highlighted strength in its beauty division amid broader earnings challenges, while Walmart reported robust growth in beauty and personal care despite a rare profit miss. In each case, beauty stood out as one of the few categories consistently delivering volume, engagement and repeat purchasing.
In Europe, results were more polarised. DOUGLAS Group returned to growth and reaffirmed its full-year guidance as demand for premium beauty remained resilient, particularly in Central and Eastern Europe. Online players also fared well, with Zalando Beauty reporting double-digit growth as customer engagement increased. These performances contrasted sharply with those of traditional luxury department stores, where falling tourist spend and exceptional costs weighed heavily. Selfridges reported declining sales, while Harrods swung to a loss despite stable revenues, underlining the structural challenges facing legacy retail formats.
The UK presented a mixed picture. Boots Beauty continued to support growth at Walgreens Boots Alliance as retail transformation efforts progressed, although earnings pressure later in the year highlighted the limits of category strength in the face of wider cost and operational challenges. THG’s return to growth in the first half signalled improving sentiment in online beauty, following a prolonged period of recalibration.
Asia delivered some of the year’s strongest beauty performances. In India, Nykaa posted repeated quarters of outsized profit growth as demand for premium beauty accelerated and brand expansion gained pace, confirming the market’s growing importance beyond mass and entry-level segments. In China-linked e-commerce, JD.com reported strong growth in beauty and personal care, while social commerce momentum gathered pace as TikTok expanded its e-commerce operations into Japan, with cosmetics firmly in its sights.
Australia also contributed to the positive momentum, with Woolworths Beauty reporting double-digit growth and expanding its regional footprint as seasonal and experiential spending rebounded.
At a global brand level, L’Oréal’s nine-month results encapsulated the broader retail narrative: modest overall growth, driven by haircare, fragrances and online, with beauty outperforming many other discretionary categories.
Taken together, 2025’s retail results revealed a sector under strain—but not without clear winners. While uneven consumer confidence and structural pressures continued to weigh on traditional retail, beauty repeatedly proved its resilience. More than a traffic driver, it emerged as a strategic pillar—supporting profitability, justifying investment and offering retailers a rare source of dependable growth in an uncertain environment.
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