Cosmetic change
Beauty behemoth Estée Lauder’s sales have been more break-up than make-up in recent reports: on Wednesday, the 77-year-old legacy brand posted quarterly revenues that were down 10%, or $410 million, from last year’s figure.
The luxury label, with its vast portfolio brimming with brands like MAC Cosmetics and La Mer, saw its share price sink 19% to a 6-year low on the back of the weak earnings — Lauder’s biggest one-day loss on record.
By contrast, affordable beauty brand E.l.f. Cosmetics has seen its sales increase 76% year-over-year — its 17th consecutive quarter of growth since Q1 2020 — a clear highlight in a comparatively stunning report that prompted a 9% jump in share price for the more budget-friendly retailer.
Winning formula
The industry shift towards inexpensive items is in line with the leveling off of other luxury giants, like LVMH and Hermès. Indeed, while Estée has long been lauded for its premium skincare offerings, it seems that newcomer E.l.f. has more effectively tapped into the fountain of youth in its marketing techniques, causing sales to surge.
True to the company’s eponymous acronym, E.l.f. launched an ‘#eyeslipsface’ TikTok campaign in 2019 — employing "micro-influencers" in a promotion that has since racked up 4 million posts, garnering 10 billion views. That’s paid off for the “100% vegan & cruelty-free” brand, founded less than 20 years ago — having recently been named Gen Z’s most-favored makeup brand by a long way, E.l.f. might be the fresh face of the makeup industry for a little while longer.
