Buzz can kill. That is the fear creeping into the beauty market as the fall retail season gets underway. There is an uncomfortable contrast between fact and feeling. Business is thriving; retailers from Wal-Mart to QVC to Macy’s to Lord & Taylor to Bloomingdale’s to Saks Fifth Avenue exude much more than their usual confidence. On the eve of the launch of Lady Gaga’s highly provocative new fragrance, innovation is running rife—particularly in makeup and skin and nail care—and the sales trend in the U.S. prestige market is holding solid, although some retailers felt a softening in June. As John Demsey, a group president of the Estée Lauder Cos. Inc., points out, skin-care gains spiked at 23 percent in March and the industry is now basking in the best fragrance business in at least a decade.
This story first appeared in the August 10, 2012 issue of WWD. Subscribe Today.
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