NO REGRETS LIFE AFTER KIEHL’S • BACKSTAGE INTEL SEPHORA’S TAKE ON KEY TRENDS

The Business of Beauty

THE 2015 BEAUTY TOP 100 RANKING THE WORLD’S LEADING PLAYERS

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AVAILABLE IN 12 SHADES OF PERFECTION DEPARTMENTS 8 16 22 Pete Master Class: Nailing It Unplugged Jami Morse A new nontoxic Beauty brands are Heidegger nail salon opens operating under More than 25 in Manhattan’s a new moniker— years after selling Financial District. premiumization, her family busi- says Pete Born, ness, Kiehl’s Since 23 WWD’s executive 1851 to L’Oréal, Chantecaille’s editor of beauty. Jami Morse Eastern Heidegger is back Expansion 10 with a second The luxury beauty Girl of the act: skin-care line brand sets its Moment Retrouvé. sights towards the Alexandra Shipp Asian consumer is storming into 19 with a new store in summer block- La Vie Hong Kong. buster season En Rose with a role in X- Spring’s fragrance 24 Men: Apocalypse. launches are floral Eye beauties. Candy 12 Sephora’s top Ground 20 buyers break Control Shopper down the hottest IN THIS ISSUE The next genera- Stalker beauty trends tion of antiox- A trek to Wil- from the fall run- FEATURES idants is found in lowbrook Mall way shows. these antipollution in Wayne, N.J., products. reveals that sub- 29 The 2015 Beauty Top 100 urbanites aren’t 14 skimping WWD Beauty Inc’s annual ranking of the world’s biggest beauty companies, with in-depth First on makeup. quantitative and qualitative analysis of the competitive landscape, including: Responders The latest launches protect 38 The Digital Pacesetters: L2 analyzes e-commerce efectiveness, digital marketing activi- skin and hair from ties, social media eforts, mobile and more to mark beauty’s most digitally-savvy companies. the environmental aggressors. 40 By the Numbers: The Players: Who’s Who on the Top 100.

44 Operating Income for the Top 100 Publicly Traded Beauty Companies: Analyzing operating income data to see who ran 2015’s most financially successful businesses.

47 The Top 10 Performing Beauty Stocks in 2015: In 2015, Asia ruled the roost. 44 53 Beauty Company Spending on Research and Development: Was One The companies on the Top 100 list that are spending the most on innovation. Direction 55 Board Composition in 2015: Avon Products tops the female leadership chart. enough to reverse the 56 Pay Scale: What ceo’s of beauty’s top public companies took home at the end of last year. downward spiral of 58 10 Beauty Companies: Those with the most and least shareholder equity. celebrity scents? Find out in the 2015 For a look at market capitalization of leading public companies, go to WWD.com. timeline.

COVER ILLUSTRATION BY MATT CHASE HAHN CHRISTINE BY PHOTOGRAPH

WWD IS A REGISTERED TRADEMARK OF FAIRCHILD PUBLISHING, LLC. COPYRIGHT ©2016 FAIRCHILD PUBLISHING, LLC. ALL RIGHTS RESERVED. PRINTED IN THE U.S.A. VOLUME 211, NO. 19. Friday, April 29, 2016. WWD (ISSN 0149-5380) is published weekly, except for the fifth week in August, the second week in September, and the third and fourth weeks in December, with one additional issue in February, April, June, August, October and December, by Fairchild Media LLC, which is a division of Penske Business Media LLC. PRINCIPAL OFFICE: 475 Fifth Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and at additional mailing ofces. Canada Post: return undeliverable Canadian addresses to P.O. Box 503, RPO West Beaver Cre, Rich - Hill, ON L4B 4R6. POST- MASTER: SEND ADDRESS CHANGES TO WWD, P.O. Box 6356, Harlan, IA, 51593. FOR SUBSCRIPTIONS, ADDRESS CHANGES, ADJUSTMENTS, OR BACK ISSUE INQUIRIES: Please write to WWD, P.O. Box 6356, Harlan, IA, 51593, call 866-401-7801, or e-mail cus- tomer service at wwdPrint@cdsfulfillment.com. Please include both new and old addresses as printed on most recent label. For New York Hand Delivery Service address changes or inquiries, please contact Mitchell’s NY at 1-800-662-2275, option 7. Subscribers: If the Post Ofce alerts us that your magazine is undeliverable, we have no further obligation unless we receive a corrected address within one year. If during your subscription term or up to one year after the magazine becomes undeliverable, you are ever dissatisfied with your subscription, let us know. You will receive a full refund on all unmailed issues. First copy of new subscription will be mailed within four weeks after receipt of order. We reserve the right to change the number of issues contained in a subscription term and/ or the way the product is delivered. Address all editorial, business, and production correspondence to WWD, 475 Fifth Ave, 2nd Floor, New York, NY 10017. For permissions and editorial requests, e-mail [email protected]. Visit us online at www.wwd.com or to subscribe to other Fairchild Publishing LLC magazines on the World Wide Web, visit www.wwd.com/subscriptions. WWD IS NOT RESPONSIBLE FOR THE RETURN OR LOSS OF, OR FOR DAMAGE OR ANY OTHER INJURY TO, UNSOLICITED MANUSCRIPTS, UNSOLIC- ITED ART WORK (INCLUDING, BUT NOT LIMITED TO, DRAWINGS, PHOTOGRAPHS, AND TRANSPARENCIES), OR ANY OTHER UNSOLICITED MATERIALS. THOSE SUBMITTING MANUSCRIPTS, PHOTOGRAPHS, ART WORK, OR OTHER MATERIALS FOR CONSID- ERATION SHOULD NOT SEND ORIGINALS, UNLESS SPECIFICALLY REQUESTED TO DO SO BY WWD IN WRITING. MANUSCRIPTS , PHOTOGRAPHS, AND OTHER MATERIALS SUBMITTED MUST BE ACCOMPANIED BY A SELF-ADDRESSED STAMPED ENVELOPE.

4 WWD BEAUTY INC

EDITOR’S LETTER

EDWARD NARDOZA EDITOR IN CHIEF, WWD

PETE BORN EXECUTIVE EDITOR, BEAUTY JENNY B. FINE EDITOR JENNIFER WEIL EUROPEAN EDITOR JULIE NAUGHTON SENIOR PRESTIGE MARKET BEAUTY EDITOR ALLISON COLLINS BEAUTY FINANCIAL EDITOR THE YEAR IN FAYE BROOKMAN CONTRIBUTING EDITOR ELLEN THOMAS EDITORIAL ASSISTANT MAUREEN MORRISON-SHULAS COPY CHIEF DANIELLE GILLIARD, DAVID PODGURSKI, MAXINE WALLY COPY EDITORS CONTRIBUTORS NUMBERS NICOLE DUDKA , MALLORY ROYNON (ART), SAMANTHA CONTI (LONDON), MILES SOCHA (PARIS), LUCIE JANIK (MILAN), MARCY MEDINA (LOS ANGELES), elcome to the 2015 version of the MELISSA DRIER AND SUSAN STONE (BERLIN), AMANDA KAISER (HONG KONG) PHOTO WWD Beauty Inc Top 100. The list, ASH BARHAMAND PHOTO DIRECTOR JENNA GREENE SENIOR PHOTO EDITOR our annual ranking of the world’s OONA WALLY BOOKINGS AND PRODUCTION EDITOR KATRINA BROWN PHOTO EDITOR biggest beauty companies, has become EMILY TAYLOR PHOTO STUDIO COORDINATOR JILLIAN SOLLAZZO ASSISTANT PHOTO EDITOR a staple of the industry. Led by Alex GEORGE CHINSEE, THOMAS IANNACCONE PHOTOGRAPHERS Wynn in Europe and Laura Klepacki BEAUTY INC ADVERTISING PAUL JOWDY SENIOR VICE PRESIDENT, GROUP PUBLISHER in the U.S., our reporters around the PAMELA FIRESTONE ASSOCIATE PUBLISHER world scour the industry’s competitive landscape to provide JILL BIREN WEST COAST DIRECTOR MARJORIE THOMAS EUROPEAN SALES REPRESENTATIVE an in-depth qualitative and quantitative analysis of the year in OLGA KOUZNETSOVA ACCOUNT DIRECTOR, ITALY W EMANUELA ALTIMANI SENIOR SALES COORDINATOR, ITALY beauty. They’ve also spent countless hours combing through PASCALE RAJAC ADVERTISING ASSISTANT, FRANCE TRISH ROBBINS SENIOR CLIENT SERVICES MANAGER the available financial data for the publicly traded companies RACHAEL DESANTIS, TINA SCHISSEL CLIENT SERVICES MANAGERS DIGITAL/MARKETING/CREATIVE SERVICES on the Top 100—50 in all—to compare and contrast everything SHANNON NOBLES MARKETING DIRECTOR from operating profit to research and development spending CASS SPENCER CREATIVE DIRECTOR, MARKETING CASSIE LEVENTHAL DIGITAL MEDIA STRATEGIST to shareholder equity. SUZETTE MINETTI DIGITAL SALES PLANNER AUDIENCE MARKETING This year it seemed like there was even more activity than ELLEN FAIRBANKS DEALY VICE PRESIDENT PEGGY PYLE CONSUMER MARKETING DIRECTOR usual to report on. Call 2015 the year of the deal—the largest, JANET MENAKER SENIOR DIRECTOR, DIGITAL MARKETING & STRATEGIC DEVELOPMENT of course, Coty Inc.’s pending RANDI SEGAL SENIOR DIRECTOR, INSTITUTIONAL SALES The impact of social media can’t be SUZANNE BERARDI SENIOR ONLINE MANAGER acquisition of 41 brands TAMRA FEBESH SENIOR MARKETING MANAGER underestimated either, particularly its role in LAUREN BUSCH ASSOCIATE MARKETING MANAGER from Procter & Gamble Co., driving sales of color cosmetics. For example, PRODUCTION KEVIN HURLEY PRODUCTION DIRECTOR including most of its prestige companies like L’Oréal (number one) and the JOHN CROSS PRODUCTION MANAGER portfolio, its professional hair- Estée Lauder Cos. Inc. (number four), posted PREPRESS PRODUCTION impressive gains thanks to their strength in the ALEX SHARFMAN DIGITAL IMAGING DAVID LEE CHIN ASSEMBLY care and color brands and its category. Factor in the economic slowdown in SUMMITS & EVENTS makeup holdings. But Coty countries that have been key drivers for many AMBER MUNDINGER VICE PRESIDENT, NEW VENTURES & GM beauty companies, such as Brazil, Russia and MARY ANN BACHER EXECUTIVE EDITORIAL DIRECTOR wasn’t alone. Unilever snapped KIM MANCUSO DIRECTOR, ATTENDEE SALES up a number of prestige skin- China, plus the adverse impact of currency ALEXIS COYLE SPONSORSHIP DIRECTOR fluctuations, and the result is a list—and an AMELIA EWERT DIRECTOR OF EXPERIENTIAL MARKETING care brands; Avon spun of FAIRCHILD PUBLISHING LLC industry—in flux. MICHAEL ATMORE EDITORIAL DIRECTOR, FOOTWEAR NEWS its U.S. business through a One person who knows change well is Jami & DIRECTOR OF BRAND DEVELOPMENT RON WILSON DIRECTOR OF EUROPEAN OPERATIONS deal with the private equity Morse Heidegger, this issue’s Master Class firm Cerberus and Walgreens subject and a woman who helped create the juggernaut known as Kiehl’s before selling it Boots Alliance snapped up to L’Oréal. After the native New Yorker moved WWD AND FAIRCHILD MEDIA ARE OWNED AND both beauty brands and retail to California she published an equestrian PUBLISHED BY PENSKE MEDIA CORPORATION behemoths in its quest for magazine, got involved with philanthropic JAY PENSKE CHAIRMAN & CEO work and settled into motherhood. Now she’s mass market dominance. GERRY BYRNE VICE CHAIRMAN back in beauty, building a skin-care business, GEORGE GROBAR EXECUTIVE VICE PRESIDENT, STRATEGY AND OPERATIONS

Retrouvé, and taking what’s she’s learned from CRAIG PERREAULT SENIOR VICE PRESIDENT, BUSINESS DEVELOPMENT her past to create the future. TODD GREENE GENERAL COUNSEL & SVP HUMAN RESOURCES NELSON ANDERSON VICE PRESIDENT, CREATIVE Heidegger has been especially motivated KEN DELACAZAR VICE PRESIDENT, FINANCE

by the emergence of a more individualistic TARIK WEST VICE PRESIDENT, HUMAN RESOURCES approach toward beauty, another key driver JUDITH R. MARGOLIN DEPUTY GENERAL COUNSEL GABRIEL KOEN VICE PRESIDENT, ENGINEERING in 2015. LAUREN GULLION DIRECTOR OF COMMUNICATIONS “In our society now and especially as we grow JONI ANTONACCI SENIOR DIRECTOR OF OPERATIONS ROBB RICE GROUP DESIGN DIRECTOR older,” says Heidegger, “we have more freedom YOUNG KO CONTROLLER to define beauty for ourselves….Now we live in DEREK RAMSEY SENIOR PROGRAM MANAGER EDDIE KO DIRECTOR, ADVERTISING OPERATIONS a society that accepts so much more diversity. ANDY LIMPUS DIRECTOR OF TALENT ACQUISITION People are becoming more self-confident about MATT WILLIAMSON, RICK GASCON DIRECTORS OF IT OPERATIONS & PRODUCTION CARL FONER SENIOR IT ANALYST making choices for themselves about what they DON GERBER, RYAN RAMOS IT ANALYSTS think is beautiful.” —Jenny B. Fine

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Estée Lauder Cos. Inc. “It’s a phenomenon that is turning out to be global.” He then shed some light on Lauder’s behind-the-scenes strat- egy. “Clearly, we believe in it because we wouldn’t have made the acquisitions that we’ve made. Our moves also shape the market.” Demsey then sketched a deep and broad potential. “We see this as transformative to the fragrance business as makeup artists were to the makeup business 20 years ago,” he says, recalling the Nineties, when Indie makeup artistry brands—like MAC, Bobbi Brown, François Nars, Smashbox and Make Up For Ever— MOVING were struggling for a foothold before gradually redefining and dominating the U.S. market. Fledgling as they may be, the upstarts have the momentum. Sales increases for fragrance juices priced higher than $120 a ON UP. AGAIN. bottle chalked up a whopping 85 percent in units, while the s consumers look for more expertise and individualism entire U.S. prestige market in juices gained 2 percent, according to NPD. In 2013, juices higher than $120 represented 11 percent in the product landscape, brands across all categories are of the prestige fragrance market. Now that category’s market premiumizing their ofer, reports WWD’s Pete Born. share is 15 percent, when measured in dollars. The premium There’s a fresh breeze blowing over the beauty landscape. category doubled in dollars from $182 million to $391 million. It’s a new sense of luxury, summed up by a new buzzword Perfumers and fragrance innovators began ofering more specialness meant to appeal to an increasingly sophisticated that many have trouble pronouncing but few marketers palette, says Karen Grant, vice president and global industry can seem to avoid: Premiumization. analyst at NPD Group. All of a sudden, the market became dot- ted with what Grant calls “fragrances that make a statement. A It is a ubiquitous term that has been applied to trading up They were all over in Europe. They’ve been brought over here,” in every category from value-priced personal and hair care to she says, adding it’s happened as major brands began backing fragrances priced in the hundreds of dollars. During a recent away from a fragrance market that has been weakening since CEW forum, Tamara Rogers, executive vice president of U.S. the early Aughts. “Retailers also had to fill that void and difer- personal care for Unilever, cited Suave Gold as an example, entiate themselves,” Grant says. Consumers began toying with which brings salon benefits into the widely popular, moderately the newer, more innovative fragrances. “Just as the consumer priced Suave brand. started looking for expertise in makeup and skin care, they What has gained the most attention is the advent of pricey started looking for expertise in fragrance,” Grant says. designer and artisanal scents, which have grown into a new class Demsey adds that distribution controls loosened up and the of luxury as the market seemed to edge away from commercial, gray market became another problem. “Commoditization of the big-box fragrances as too marketing-driven with masstige pro- category led to, in my mind, a fragrance industry that was weak- motional tactics that smacked of commoditization, although ened, less aspirational and not valued by the customer,” he says. the designer category remains strong. Some discriminating It was a diferent story for the artisanal scents. “The consumer consumers opted for the higher quality of a more authentic gave credit to the quality of the product, the olfactive creativity, breed of product. the intensity of the juice, the more personalized experience, “We are on the cusp of something that can be very big, ” says the more selective distribution and quite honestly, the quieter Nicolas Mirzayantz, group president of fragrances at Interna- promotional backscape,” says Demsey. tional Flavors & Fragrances, adding that some fragrance brands Jerry Vittoria, president of fine fragrance at Firmenich North have succeeded in “redefining luxury.” America, asserts that the drive for greater quality is raising the “We have seen a space where share of mind, heart and pocket bar for major launches like Lancôme’s La Vie est Belle, Marc for fragrances have really increased,” adds Dionisio Ferenc, vice Jacobs’ MJ Decadence, YSL’s Black Opium and the “Profumos” president of global fine fragrance. Remarking that fragrance of Armani. “These are higher-quality juices often matched with was once seen as a giftable item that people would spend $60, unique packaging that are bridging the quality gap with the $80, $100 for, he says, “Now there are people willing to pay luxury niche players and bringing more modern olfactory ideas $200, $300, $500. Niche is no longer niche. I think perhaps it to the market,” he says, adding that consumers “are looking for is a new reality.” approachable luxury with an interesting olfactive twist. A spotlight has been cast onto these brands when Estée “Consumers want authenticity. The growing popularity of Lauder swooped up three notable names—Frédéric Malle, Le luxury niche reflects the need of the consumer, especially the Labo and By Kilian—in a dramatic move to upgrade its fra- Millennials, to believe in something that is honest, authentic grance portfolio. These acquisitions were made on the top of and artisanal—not mass manufactured. Premiumization not only Lauder’s building the Tom Ford and Jo Malone brands to relative means more upscale, but advocates for the need to be more scarce giants with retail sales volumes in excess of $500 million each, and uncommon,” Vittoria says, quoting figures that indicate the according to industry sources. artisanal niche category could grow to $800 million to $900 mil- “All the growth is coming out of the upper tier of the mar- lion by 2020. “With the business pushing $1 billion, the category

ketplace,” says John Demsey, executive group president of the is becoming significant,” he says. “That is no longer niche.” ■ ILLUSTRATION SAMBY KERR

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Girl of the Moment HEN ALEXANDRA SHIPP LEARNED SHE’D have to With or without hair, shave her head for her role in this summer’s X-Men: this beauty has a bright future. Apocalypse—she appears as a teenage Storm, Halle Berry’s character in the franchise—there was little trepidation on her part. “I was like, ‘Yep, let’s do it, that will be so much fun!’” says the 24-year-old actress, Alexandra whose breakout role was playing the R&B singer Aali- yah in the 2014 Lifetime biopic. She recently released a single of her own, Wwith plans for more this year. Shipp maintains a low-key approach to beauty— SHIPP her daily routine consists of CC cream, Anastasia Beverly Hills’ Brow Pen and BY ELLEN THOMAS L’Oréal Colour Riche La Lacque Lip Pen in Lacque-y You, a strawberry-red shade. She also favors oils and masks from natural lines like Éminence and Caudalíe. Though the Phoenix native, who just bought a house in Los Angeles, occasionally misses some of the fun parts of having long hair—especially curl- ing irons, French braids and getting blowouts—she’s going with the flow on her current look. “It’s about an inch long, and I’m doing this cute Mia Farrow in

Rosemary’s Baby thing. I’m loving it,” she says. “It’s going to be nice for summer.” BROADIMAGE/REX/SHUTTERSTOCK BY DRESS BLACK LATOUR/REX/SHUTTERSTOCK; ROB BY DRESS BLUE OF PHOTOGRAPH

10 WWD BEAUTY INC

BEAUTY BULLETIN

GROUND CONTROL As U.S. consumers increasingly obsess over the food they eat, beauty marketers are looking to bank on another concern—the air they breathe. In Asia, products carrying antipollution claims have been on the rise for some time—a Mintel study found that from 2011 to 2013, there was a 40 percent increase in the number of such launches. Now the trend is accelerating in the U.S. with a slew of products that go beyond standard SPF protection, promising to neutralize damage caused by environmental aggressors like dust, car exhaust and pollen. “You’re using products to help your skin ward of these environmental aggressors,” says Christine Chang of Glow Recipe. “We’re living in an

increasingly polluted world, and people want to find ways to be healthier.” —ELLEN THOMAS PATTON TIFFANY BY MAKEUP VINCE BARILE; STYLIST: PROP RIDLEY; JAMES ASSISTANT: PHOTO MODELS TRUMP AT RAE MODEL: MIA DIOR BEAUTY; FOR

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The The Barriers Blockers

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2 1 1. Oribe Glaze for 1. Dr. Russo SPF 30 Sun Beautiful Color, $58 1 Protective Day Cleanser, $75 Oribe’s signature complex A proprietary technology 3 protects hair from oxidative encapsulates sunscreen stress and photo-aging; UV ingredients to deliver UV protection adds a boost. protection via a cleanser. 2

2. Dior One Essential 2. Dr. Jart+ Every Sun Day UV Mist-Lotion, $60 Sun Fluid SPF 30, $34 4 Red hibiscus extract is said to rid This blocks against UV rays skin of environmental toxins in and fine dust particles with a 3 this pH-balancing spray. repellent formula that creates a barrier around the skin. 3. Ren Flash Defence Anti-Pollution Mist, $38 3. Elizabeth Arden Biosaccharide gum, derived Prevage City Smart from sugar and yeast, protects Hydrating Shield, $68 against free-radical triggers, Proprietary technology shields like secondhand smoke and from pollution and minimizes exhaust fumes. free radical damage. 4 4. La Mer The Perfecting 4. Urban Decay Naked Treatment , $240 Skin One & Done Hybrid To be used before or after Complexion Perfector, $34 foundation for a skin-evening, A light-difusing, tone- soft-focus efect, this gel- evening formula comes like balm employs lime tea with added UV protection. concentrate to fight pollutants.

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N INTERVIEW with Jami Morse Heidegger is part bare- all therapy session, part expert business Acommentary. At 55, she’s endured more personal and professional swings than most people have in a few lifetimes. A fit- ness trainer when she met her husband, Austrian ski champion Klaus Heidegger, she went on to run a hotel and restaurant, before following in her father’s footsteps to oversee the family business, Kiehl’s Since 1851. After selling the brand to L’Oréal, she published and edited equestrian maga- zines, dove into philanthropic endeavors and settled into motherhood. Today, she’s taken up what is arguably her most dif- cult role: building a new skin-care business that’s distinct from Kiehl’s while adding to her deep beauty legacy.

Were you nervous about getting back into the beauty industry? I wasn’t really nervous. I just didn’t want to do it.

Why not? First of all, I don’t like people looking at me. I’ve always been insecure about my looks and uncomfortable with myself physically. When I was at Kiehl’s, it was hard for me to go out there and promote it. If I didn’t like doing it in my 20s and 30s, it certainly was more uncomfortable to do in my mid-50s. I said to Klaus, “I want you MASTER CLASS to be the front person.” [But] it turned out that people want to talk to me. At first, I didn’t really do interviews except on the phone. I realized at a certain point that if we want the business to grow, I have to be A CONSIDERED a part of that. Secondly, I’m very much a helicopter mom. For me, time with my kids was really precious, and I didn’t want to be always on the phone.

APPROACH What has helped you overcome your Jami Morse Heidegger has always combined approachability with insecurities? introspection—and a killer instinct for beauty. Now, 16 years after selling A lot of therapy. I have done a lot of work Kiehl’s to L’Oréal, she’s back in the beauty game. on myself, so I could be a role model for my daughters to feel strong and empow- BY RACHEL BROWN ered. In fact, our older daughter is a sex

16 WWD BEAUTY INC PHOTOGRAPH BY DEREK WOOD The Business of Beauty

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THE POWER OF CONTENT

FOR MORE INFORMATION, PLEASE CONTACT CARLY GRESH, BEAUTY DIRECTOR AT 646 356 4705 OR [email protected] BEAUTY BULLETIN

everything ourselves. If we were to expand therapist from Stanford. I look at her and what they want with it. If you are looking much further, though, we would consider say, “Wow, I could never do that.” It was to make yourself bigger as part of a large bringing on an investor or partner—not important to me to help my kids be some- company, it doesn’t always work that way. like in Kiehl’s where we turned it over and thing I wasn’t. For example, I would always You are never quite in the same position as sold it, but where they are giving an injec- say when I was younger, “Oh, I feel so fat. you were. Even if you think you know best, tion of capital to help the company grow. I look fat in my jeans.” My kids would hear you don’t call the shots as you did before. this all the time, and I didn’t realize what There are so many options for skin care seeds I was planting in young girls. That’s Retrouvé has high concentrations of these days. How does the luxury cus- something I learned to change. active ingredients. What product was tomer approach skin care? particularly difcult to formulate? My world is Beverly Hills, Los Angeles, You followed in the footsteps of your The Intensive Replenishing Facial Moistur- New York and now Paris. So, that’s a little father and grandfather at Kiehl’s. Is it izer and the Revitalizing Eye Concentrate. diferent from maybe what the whole important for your children to follow They have a very high quantity of squalene, world is doing. Botox has become a staple you into Retrouvé? and vitamin E, A and oligopeptides. Mak- for a lot of people. I did my nose when Originally, very much so. My daughter ing sure we can manufacture them with I was younger, but I don’t have facelifts. Nicoletta, the sex therapist, barely has for- enough preservative for a sustained shelf I’m not averse to any of that. What’s really given me for selling Kiehl’s. Just as I was life, but not overcoming the positive action helpful now is these mini medical spas indoctrinated into Kiehl’s when I was very of the ingredients, forced us to look for dif- where in 10 minutes or a half hour, you young—I was working there, I was behind ferent kinds of packaging. Retrouvé’s ethos can have a terrific treatment that is non- centers around the counter, I was blending essences—she launching only hero invasive with little to no downtime. It was helped us, too, until we sold Kiehl’s when What was the thinking behind Retrou- products, rather only maybe eight years ago when, to have she was about seven. She was very con- vé’s black packaging? than a broad range any of these treatments, you had to go designed to grab scious of what Kiehl’s was. My son is inter- Being a lifetime New Yorker, black’s the counter space in to a dermatologist. They had heavy-duty ested in studying business, so we thought only color as far as I’m concerned. When department stores. machines, and you are talking $2,000 a he could be a part of this and get valuable we were first talking about coming back pop. What’s cool now is they are at all experience. It is important to me that at into the industry, everything was lab this price points. least the opportunity be available. They and lab that. It was almost Kiehl’s on don’t have to come in. steroids. I thought, “We are losing the How is the older skin-care customer dif- romance of taking care of ourselves.” I ferent from the customer of your mom’s Do you have any regrets about selling thought back to the wonderful paintings generation? Kiehl’s? of the 18th century with ladies in their Back in the day, even if a product was I don’t after all these years, but it was a boudoirs putting themselves together. I geared toward 50-year-olds, it was promul- very bittersweet choice. I decided to sell wanted to return to that feeling through gated with models who were 20 showing because I thought it was best for Kiehl’s the packaging. their beautiful skin. Everybody wanted to in the long run. It was not best for me try to be 20, and you didn’t want to admit personally or for my family. I felt that my How do you see the brand evolving? to being 40-plus. Something that has responsibility was to help seal the Kiehl’s We are growing the line, but gradually. It always been a big taboo is people being legacy for the future. I was convinced that is very much a niche line. I choose to make comfortable to share their age. I’m not the best way for Kiehl’s to grow as needed and bring out products that I really make ashamed to say I’m in my 50s, and I want was with L’Oréal, a company that had ten- for myself because I can’t find them in the to do something that a 50-year-old needs tacles all over the world and was able to market. We don’t want to make something to do. It’s only been within the last three do things that we weren’t. I really admire for the sake of having more products or to four years that that has become more how they have tried to be very protective a larger counter or a bigger presence at a acceptable. of its heritage, and yet grow and bring in department store. So far, we have funded new products. They have done a good job Has your definition of beauty changed of that, but, at the beginning, it was a big as you’ve gotten older? sacrifice. It was so much a part of my fam- In our society now and, especially as one ily and my identity. grows older, we have more freedom to define beauty for ourselves. There is less of What advice do you have for others who trying to be like everyone else. I’m much are considering selling a company? Something that has always been a big more comfortable embracing who I am. You have to be really clear about why you taboo is people being comfortable to When I was growing up, it was all about are selling it and go into it with your eyes Cheryl Tiegs and Christie Brinkley. I was wide open. If someone is intending to sell share their age. I’m not ashamed to say tall, dark-haired and had a big nose. I just just to get an infusion of money and they I’m in my 50s and I want to do something did not fit in with that vision of beauty. expect to still run it and have it be the that a 50-year-old needs to do. It’s only Now, we live in a society that accepts so same way it was, they are probably mis- much more diversity. People are becoming taken and should probably look for inves- within in the last three to four years that more self-confident about making choices tors rather than selling it. When someone that has become more acceptable.” for themselves about what they think is pays you, it is theirs and they get to do Jami Morse Heidegger, Retrouvé beautiful. ■

18 WWD BEAUTY INC BEAUTY BULLETIN

Viktor & Rolf Bonbon, $50

The classicis reimagined caramel-infused as a hair mist.scent

Salvatore Ferragamo

Emozione Dolce Fiore, $99 delicate floral heart. A musky base balances out a

Ralph Lauren Tender Romance, $96 SHELF LIFE Gingerminded adds a hint memberLa of spice of theto the Romance new, Vie Millennial- family. en Rose a citrus-spiked efect. Spring’s fragrance launches are unabashedly ladylike, PradaTuberose Infusion and de Fleurjasmine D’Oranger, are combined $160 with mandarin orange and neroli for laced with soft floral notes and bottled in feminine hues of peach, pink and cream. —ELLEN THOMAS

Narciso by Narciso Rodriguez, $114

The poudrée version of the original Narciso scentrose blends with white notes jasmine of cedar and and Bulgarian vetiver.

Carven L’Absolu, $120

and ylang-ylang. A florientalaccords base of is green made mandarin fresh with PHOTO RETOUCHING BY MATTHEW KEFF @INDICATEGRAY

PHOTOGRAPH BY JONATHON KAMBOURIS STYLED BY SARAH GUIDO-LAAKSO WWD BEAUTY INC 19 BEAUTY BULLETIN

SHOPPER STALKER The Buy Side ELLEN THOMAS heads to the Willowbrook Mall in Wayne, N.J., to visit the first NYX Ombré freestanding NYX store on the East Coast and see how it stacks up Lip Duo in versus neighboring powerhouse MAC Cosmetics. Cookies & Cream, $12 Babicz wanted to MAC Mineral- test out an ombré lip ize Skinfinish in after spotting Medium Dark, the trend on $32“It brings a little Instagram. bit more light to a MAC Eyeshadow matte foundation,” says Fanslau. Palette in Burgundy Times Nine, $32 “[These] are all col- ors I would normally choose and they were reduced in price, so it was a no-brainer,” says Fanslau.

NYX Glitter Primer, $6 Babicz snapped up this primer for her glitter look. MAC Powder Blush in Sun- NYX Lip Lingerie basque, $22 in Lace Detail, “I like a little more MAC Pro Embellishment, of a shimmer,” Honeymoon, Teddy says Fanslau of Longwear Paint her go-to blush Pot Vintage and Baby Doll, formula. Selection, $22 Five for $7 each Fanslau swears by “All the beauty gurus Rubenesque, but are using it, so I had a sales associate to run out and get suggested she try [them].” a more frosted shade. NYX Face & Body Glitter in Copper, $6 What’s in “Most of What’s in the time I’m Carly's Bag? Angela's Bag? superneutral, TOTAL SPENT: but I’m dabbling TOTAL SPENT: in glitter,” says $115.56 $53.57 Babicz. MISSION: MISSION: MARCH 10, 2016—1:52 P.M. MARCH 10, 2016—12:39 P.M. MAC STOCKING UP NYX LIPS LIKE 1400 WILLOWBROOK MALL WAYNE, N.J. 1400 WILLOWBROOK MALL ON STAPLES WAYNE, N.J. KYLIE

TEACHER’S HOLIDAY WAS THE PERFECT EXCUSE for elementary HEN YOU’RE A NEWLY MINTED reality TV personality with a pre- school supervisor Carly Fanslau, 32, of Toms River, N.J., to swing by MAC to miere party to attend in a week, new makeup is a must. Self-proclaimed A replenish some staples she was running low on. Fanslau loves makeup and Wbeauty junkie Angela Babicz, 25, just wrapped shooting the new season scours Instagram and Pinterest for inspiration. She is also a MAC devotee—carry- of Oxygen’s Bad Girls Club and popped into NYX to test out new lip looks for the ing no fewer than 10 shades of the brand’s Lipglass, Lipstick and Lip Pencils in her red carpet event. First on her list is Lip Lingerie liquid lipsticks, which the Clifton, purse at all times. “I’m not comfortable changing [brands],” says Fanslau. She swears N.J., native says are afordable substitutes for the sold-out Kylie Jenner Lip Kit. by the MAC Pro Longwear range for its staying power, noting, “I work really long Babicz, who spends approximately $2,500 annually on makeup from brands like hours. It stays on for the whole day and I don’t have to worry about it.” Fanslau, NYX, MAC and Make Up For Ever, looks for products that are “trendy and in.” She who spends about $2,000 on beauty annually, sticks to a list while shopping, and typically prefers the convenience of online shopping, but made an exception for rarely deviates from it—even in a playground like MAC. “You never have to do the today’s visit. “I’m a huge fan of the Kardashians,” says Babicz. “I follow everything same thing if you don’t want to,” she says, “but if you want to, that’s great,- too.” they do, so whatever they’re using, I’m like, ‘I gotta go out and get that right now.’” PHOTOGRAPHED BY GEORGE CHINSEE; PRODUCTS BY GEORGE CHINSEE

20 WWD BEAUTY INC ADVERTISEMENT RECOGNIZING EXCELLENCE IN LUXURY SERVICE L’ORÉAL LUXE is proud to partner with WWD to recognize exceptional service in luxury beauty.

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JOIN US Nailing It when the Winners At her new nail salon Van Court, Ruth Kallens says her are revealed! customers are willing to pay a pretty price for clean. BY ELLEN THOMAS

C E W ORKING AS A MODEL on Wil- air-dried in lieu of UV lights, treatments comprise B E A U T Y AWA R D S helmina’s plus-size board in her all-natural products and essential oils, and nail art 20s, Ruth Kallens was never is done without gel polish. Manicures run from $35 LUNCHEON satisfied with her manicures. “I to $65 and pedicures $65 to $85. Though prices 5.13.16 was always doing them myself,” are on the steeper side, last year’s New York Times Wshe says, “and walking into a nail salon, it always exposé on the exploitative culture of New York nail WALDORF ASTORIA | NYC smelled awful, like toxic chemicals.” Years later, salons proved to be serendipitous timing for Kal- after leaving a career in beauty public relations to lens. “I knew I was onto something,” she says. “It’s run her own social media marketing consultancy, made [marketing the salon’s higher prices] a little she was introduced to the world of professional easier.” Plans call for a Van Court-branded nail- and Reserve nail technicians and artists via her client, Deborah hand-care line, as well as a Los Angeles location, but TABLES & TICKETS AT Lippmann. Thus was born her next business: Van ultimately, Kallens sees the salon expanding into a Court, a nontoxic nail studio that Kallens opened continuing education center for certification in clean CEW.ORG in March in Manhattan’s Financial District. The practices. In New York, Van Court has attracted a salon’s staf comprises editorial nail techs whom Kal- wide customer base—many are young professional lens says are paid more than twice the hourly rate women and moms making the trek from Brooklyn of comparable high-end nail salons in Manhattan. and the Upper East Side. “If they don’t have the extra Polishes, from brands like Deborah Lippmann, RGB money, they’re putting the budget there because they @CEWinsider and Londontown, are all at least five-free. Nails are care about cleanliness [and] health.” #CEWAwards

PHOTOGRAPH BY CARMEN CHAN BEAUTY BULLETIN

RETAIL WATCH Chantecaille’s Eastern Expansion Asia may be a sore spot for some luxury brands, but for Chantecaille, it remains a strong market. So what better locale than Hong Kong—where sales surged 38 percent in 2015—when founder Sylvie Chantecaille decided to open her first freestanding boutique? Designed by French architect Patrick Naggar to resemble a chic Parisian apartment, the 1,600-square-foot La Boutique is situated in Causeway Bay with an opening date set for late April. In addition to retail space, two treatment rooms ofer services like the Gold Facial. “We run an extremely healthy business in Hong Kong,” says Chantecaille, noting that 2016 has opened on a positive note, with sales there up 17 percent in January and February, up 43 percent in Taiwan and 63 percent in Korea. While Chantecaille is mum on future stand-alone store openings, she did note that the brand’s counter count will expand from seven to 12 in Taiwan this year and that Chantecaille will expand its duty-free presence in Korea to better attract Chinese tourists. —JENNY B. FINE

ATTEND THE AWARD WINNING EVENT POWERHOUSE SPEAKERS: SAVE THE DATE Largest International B2B Beauty Expo

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RUDI BECKER CONOR BEGLEY MARY BEMIS CHRIS BIRCHBY MARIELLE BOBO • More than 1,000 exhibitors from 30+ countries • Opportunity to create your own beauty box inside SENIOR DIRECTOR, PACKAGING PRESIDENT FOUNDER & EDITORIAL DIRECTOR FOUNDER & CEO FASHION & BEAUTY DIRECTOR & INDUSTRIAL DESIGN TRIBE DYNAMICS INSIDER’S GUIDE TO SPAS COOLA SUNCARE EBONY MAGAZINE anticipated BOUTIQUE with proceeds going to an industry charity METHOD foundation • NEW! Discover Green is an innovative section specially curated for the green, eco-friendly, clean, organic, • Beauty PitchTM 2016, a beauty-centric competition and/or natural market focused on helping beauty entrepreneurs, moves to Saturday, July 23rd • The acclaimed curated areas Discover Beauty, Discover Beauty Spotlights, Discover Scent, International • NEW! INSPIRE: A Night Celebrating Beauty FAYE BROOKMAN BROOKE CARLSON ALICE CHANG BARBARA CLOSE ROSE FERNANDEZ VP/GENERAL MANAGER, rd CONTRIBUTING WRITER PROFESSOR CEO FOUNDER/CEO Business Forum & Exhibition, and Tones of Beauty will Entrepreneurs, debuting Saturday, July 23 , is a night WWD FIT PERFECT CORP. NATUROPATHICA NORTH AMERICA be returning as well focused on the entrepreneurial and charitable spirit JURLIQUE of the professional beauty industry. This must attend • International presence from group and country event will also feature the live Beauty Pitch™ 2016 pavilions competition. Charitable benefi ciaries for the night’s • Sought-after conference sessions from the leading events are PROFESSIONAL BEAUTY ASSOCIATION trade associations [CEW, ICMAD, PBA], magazines CARRIE GROSS DEANNE KACZERSKI NICKY KINNAIRD ELLEN LENNON CLAUDIA LUCAS FOUNDATION and CITY OF HOPE PRESIDENT/CEO EDITORIAL DIRECTOR FOUNDER DIRECTOR OF MERCHANDISING EVP BUSINESS DEVELOPMENT [AMERICAN SPA, BEAUTY PACKAGING, DR. DENNIS GROSS TIME INC. NICKY KINNAIRD FOR BEAUTY BEHRMAN COMMUNICATIONS • NEW! Entrepreneur Academy is an exclusive one-day COSMETICSDESIGN.COM, INSIDER’S GUIDE TO SKINCARE CONSULTING LIMITED QVC forum providing beauty entrepreneurs with the tools to SPAS, and WWD] and a special collaboration with succeed. the FASHION INSTITUTE OF TECHNOLOGY

MEGAN MANCO DEBORAH MARQUARDT CARRIE MELLAGE ANDREA MUGUERZA REGISTER BY JUNE 24 AND SAVE UP TO 30% SENIOR R&I SCIENTIST VP/GENERAL MANAGER VICE PRESIDENT, CONSUMER GLOBAL MARKETING MANAGER WWW.COSMOPROFNORTHAMERICA.COM ADVANCED CLINICAL RESEARCH TIME INC. STYLE NETWORK PRODUCTS, SKINCEUTICALS L’OREAL USA KLINE & COMPANY

WWD BEAUTY INC 23 z EYE CANDY Jessica Phillips Perez, HAIR Director of Merchandising, Hair

TREND Trend: Natural Texture

“We’ve been seeing natural texture play out in various ways TRACK for the past few seasons. This Sephora’s top merchants movement toward celebrating deconstruct the key backstage beauty individual beauty is really trends from the fall runway shows. powerful because it signals the move toward a more inclusive BY JENNY B. FINE beauty both on the runway and in real life. Over the past LEOPARD PRINT, 12 months, we’ve seen real capes and a pro- innovation in this space— nounced lingerie from gel-oil formulations influence were that provide treatment some of the stron- and styling benefits to stylers that enhance Artemis Patrick gest fashion themes Michael one’s natural texture.” Kors Senior Vice to emerge from the Zac Posen President, fall runway shows. Merchandising But whither beauty? In a time when social media influ- Trend: Easy, Messy Knots encers and celebrities are as likely to create must-have trends as a superstar “This is about efortless makeup artist or hair stylist, is the hair and working with runway still relevant? Absolutely, says natural texture. It’s also art Artemis Patrick, senior vice presi- imitating life in a way as dent of merchandising at Sephora. it totally fits the macro- ‘ath-leisure’ trend “Runway remains the purest form of happening right now.” Tory Derek cutting-edge and first-to-market inspi- Burch Lam ration,” she says, “and tends to bring out the most sophisticated and aspira- tional aspect in the industry.” Trend: Braids This season was no exception, says “Braids are everywhere! They Patrick, who cites a decided shift in can be as easy or complicated makeup. “It was definitely darker and as the skill level of the braider. bolder than in seasons past, and was They can also be tailored to the applied with an interesting sense of look, such as the little romantic self-expression,” she says. “Makeup braids we saw at Rachel Zoe looks were powerful and artistic, with and the boxer braids seen at Creatures of Comfort. In the eye and lip taking center stage. Cheek store, this has been playing out and skin were downplayed, which in a major way. Kim Kardashian feels fresh after so much action in rocked the boxer braids at the highlighting and contouring.” shows and in an instant they Here, Patrick and her team reveal blew up on the street. They their standout runway moments and work well on second- or third- day hair, or with a good volume how they plan to capitalize on them powder, salt or texture spray.” Ulla in-store. Rachel Johnson Zoe ERICKSEN; KYLE BY PHOTOGRAPHS KNOT MESSY AND EASY, TEXTURE NATURAL (ZOE) ROSE AURORA (JOHNSON); MITRA ROBERT BY BRAIDS

24 WWD BEAUTY INC

Cindy Deily, Senior Director, SKIN CARE Merchandising, Skin Care

Trend: Clean Prepped Skin for a Glowy & Luminious Complexion

“Brands creating looks through skin care EAN PREPPED rather than makeup is a trend we’re seeing on the runways; for example, creating dewy, glowing skin from watery creams instead of luminizers. We’re also seeing skin care brands leverage their fashion week activities primarily via social media, which leads to increased search and sales.” Stella Victoria McCartney Beckham Jason Wu

Averyl Andrews, Beth Hayes, MAKEUP Senior Merchant, Color VP/DMM, Sephora Collection

Trend: Modern Gothic/Grunge Lip Trend: The Reinvented Smoky Eye Trend: A Clean, Matte Complexion

“Our client is becoming more and “This reinvented smoky eye is a startling “After a year of intense strobing and more experimental with her lip contrast to the popularity of the bold, precise highlighting, a simple matte face feels choices, and we are starting to see cat eye we’ve seen in the past few years. By refreshing and modern. We have seen unusual colors like lavender, blue, reinvented, I mean that eye looks are starting traction in matte foundations and brown and black rise in popularity. to feel more rebellious, messier and smokier, no-makeup makeup for a while now, Whether it is deep, dark berry or the which will be a fresh new direction for our but this new approach of a flawless blackest black, we think a moody lip client. In 2016, we are anticipate kohls and canvas with a lack of color on cheeks, has never looked better. A Goth lip is kajals will start to build in importance, and felt starker than in seasons past. It’s the new power tie. —Averyl Andrews interest in liquid eyeliner may start to wane. flawless, but not luminous.” We are also loving the many interpretations of —Beth Hayes brown, charcoal and black-matte shadow application. —Averyl Andrews MODERN GOTHIC/GRUNGE LIP PHOTOGRAPHS BY LEXIE MORELAND (RODARTE), DELPHINE ACHARD (DIOR), STÉPHANE FEUGÈRE (SAINT LAURENT); CL LAURENT); (SAINT FEUGÈRE STÉPHANE (DIOR), ACHARD DELPHINE LEXIE MORELAND (RODARTE), BY PHOTOGRAPHS LIP MODERN GOTHIC/GRUNGE (JACOBS), ERICKSEN KYLE BY EYE REINVENTED SMOKY (MCCARTNEY); ACHARD AND DELPHINE WU) AND (BECKHAM ERICKSEN KYLE SKIN BY (MARANT) ACHARD DELPHINE WANG), AND SCHULER (PROENZA ERICKSEN KYLE BY COMPLEXION MATTE CLEAN, A (SAAB); ACHARD DELPHINE

Dior Rodarta

Isabel Marant

Elie Saab Rodarte Rodarte Saint Marc Alexander Laurent Jacobs Wang

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THE 2015 BEAUTY TOP 100 CHANGE THE TREMORS COULD BE FELT AROUND THE WORLD: 2015 was a year of seismic change for the global beauty industry, with news dominated by Coty Inc.’s proposed acquisition of 41 brands from Procter & IS IN Gamble Co., including most of its prestige portfolio, its professional hair- care and color businesses and makeup brands. The move will shake up the industry in the years to come—and likely the shape of the WWD Beauty Inc Top 100 ranking once the acquisition is finalized later this year. For now, however, P&G maintains its number-three slot in the rank- THE ing for 2015, but nevertheless saw a sharp decline in sales due to currency headwinds and divestures of brands including Rochas and Frédéric Fekkai. But P&G and Coty didn’t dominate headlines. The year also saw the mar- ket’s number-two player, Unilever, make inroads in the prestige skin-care category with a series of rapid-fire acquisitions, and ailing Avon announce it would spin of its U.S. business through a deal with private equity firm Cerberus. Acquisitions also played a role in boosting sales for certain smaller players. AIR For example Walgreens Boots Alliance (formerly listed under Boots) jumped four places to number 32 in the ranking with a 30.5 percent sales rise driven by its integration of Soap & Glory and Liz Earle. PdC Brands, at number 75, gained 16 places, fueled by strategic acquisitions as well as organic growth. Private-equity firm Catterton made its entry into the Top 100, meanwhile, thanks to its acquisition of Steiner Leisure, and is listed at number 67. While 75 percent of the world’s leading beauty compa- nies—including number one, L’Oréal—posted sales gains in 2015, the market was challenging for many players hit by the slowdown in South America, especially Brazil, as well as in Russia and parts of Asia, notably China. Currency fluctuations also meant some companies dropped several places down the ranking after their sales were converted into dollars. This was especially notewor- thy for players from Japan, and, to a certain extent, manufacturers in Europe, despite many of them benefiting from the weak euro in reported terms. Both Hermès Inter- national and Cartier, for example, despite reporting healthy sales gains in reported terms, dropped 10 places down the ranking due to the weak euro. Avon was not the only direct-sales beauty firm to struggle in 2015, partly because of the seg- ment’s reliance on Latin American markets. Tupperware Brands Corp. dropped nine places in the Top 100, while Peru’s Belcorp and Nu Skin Enterprises both dropped a slot. Brazilian leader Natura held its own thanks to its international expansion, but registered a 6.6 percent decline in its domestic sales. Total sales for all 100 companies reached $195.52 billion, a 5.7 percent decrease year-over-year. L’Oréal accounted for 14.3 percent of total sales, while the top 10 companies overall generated sales of $111.24 billion, or 56.9 percent of total Top 100 revenues.

ILLUSTRATION BY MATT CHASE WWD BEAUTY INC 10 COMPILED, RESEARCHED AND WRITTEN BY ALEX WYNNE AND LAURA KLEPACKI EDITED BY JENNY B. FINE WITH CONTRIBUTIONS FROM: MAYU SAINI (NEW DELHI), LORELEI MARFIL (LONDON), ALLISON COLLINS (NEW YORK), LUCIE JANIK (MILAN) AND CASEY HALL (SHANGHAI)

OUR METHODOLOGY The WWD Beauty Inc To p 10 0 ra n ks t h e world’s largest beauty L’ORÉAL manufacturers. Firms are arranged by their CLICHY, FRANCE beauty sales for the 2015 2015 BEAUTY SALES: calendar year. For those $28.02 BILLION companies whose fiscal €25.26 BILLION year did not run from + 12.1% V. ’14 Jan. 1, 2015 to Dec. 31, Main Brands: CONSUMER PRODUCTS: L’Oréal Paris, Garnier, Maybelline New York, 2015, estimates were SoftSheen Carson, Essie, Magic, NYX Cosmetics, Carol’s Daughter, Niely Cosmetics. calculated. All sales figures PROFESSIONAL PRODUCTS: L’Oréal Professionnel, Kérastase, Redken, Matrix, were either obtained Decléor, Carita. L’ORÉAL LUXE: Lancôme, Giorgio Armani, Yves Saint Laurent, Kiehl’s, from the companies or Biotherm, Ralph Lauren Fragrances, Clarisonic, Shu Uemura, Urban Decay, Diesel, generated with the help Helena Rubinstein, Cacharel, Viktor & Rolf. ACTIVE COSMETICS: Vichy, La Roche- of industry sources. For Posay, SkinCeuticals, Roger&Gallet, The Body Shop. this list, “beauty” includes fragrance, makeup, skin- care, body-care, sun-care, hair-care, deodorant, plus cellulite and shaving Growth for L’Oréal, the growth in Europe. L'Oréal, the UK and Germany. North with strong growth in Egypt, products. It does not take world’s largest beauty citing statistics from NPD, American sales grew 23.5%, Pakistan and Saudi Arabia and into account bar soaps, manufacturer in 2015, said the brand also edged or 3.5% on a like-for-like basis, a solid performance in South razors, toothpastes, food was fueled by its Luxe and out Estée Lauder as the to €6.65 billion. Urban Decay, Africa. The Body Shop, which and diet foods, medicines, Active Cosmetics divisions number-two brand in the U.S. Kiehl’s and Yves Saint Laurent saw sales increase 10.7% vitamins or detergents. and the rapid expansion of prestige market with a 6.0 all posted double-digit growth (down 0.9% like-for-like) to The revenues only include e-commerce. The company’s market share, versus 5.9 for there, and the Professional €967.2 million, completed sales of beauty products 1e-commerce sales rose 38% to Lauder. Kiehl’s saw double- Products division improved its its acquisition of Australian each firm manufactures €1.3 billion, accounting for 5% digit growth and Urban Decay performance, notably thanks franchisee Adidem Pty Limited, and do not include of group sales. In China, which entered Mexico and Australia. to Redken. NYX and Maybelline taking full control of operations business from private- replaced France as L’Oréal’s The Active Cosmetics fueled the Consumer Products in its fifth largest market. In label lines or products second-largest market after division grew 9.4% to €1.82 division in the region. In Asia- February, L’Oréal inaugurated distributed for other the U.S. for the first time, billion (+7.8% like-for-like). Pacific, sales grew 19.7%, or a €50 million factory in Cairo, companies. Information in online sales represented The division accelerated 4.7% like-for-like, to €5.46 Egypt to serve as a production the Main Brands section more than 20% of sales for its focus on e-commerce, billion. The Luxe division hub for the Consumer Products reflects each company’s the Consumer Products which contributed 18% of the struggled in Hong Kong but division for the Middle East holdings in 2015. Year- division. Makeup was a growth division’s growth. Markets was driven by Japan. Consumer and North Africa. June saw the over-year percentage driver. Maybelline, the world’s outside Western Europe Products were boosted by signing of a fragrance licensing changes are in reported number-one makeup brand, as accounted for 52% of Active strong performances in India, agreement with Proenza terms, not on a like-for- per company data, saw strong Cosmetics revenues. The Australia and Thailand, and Schouler. In October, L’Oréal like or constant-currency momentum notably in the U.S. Consumer Products division by L’Oréal Paris, notably in announced a partnership basis. Non-U.S.-based thanks to a renewed brand grew 10% (up 2.5% like-for- China. Beauty mask-maker with digital training specialist firms’ sales are converted image, product innovation like) to €11.8 billion, driven by Magic Holdings, acquired in General Assembly to build into dollars according to and digital initiatives. L’Oréal makeup and hair care, with 2014, is in a transitional phase, an online learning platform the 2015 average yearly Paris rolled out its Makeup solid growth in North America, the company said. Active and support company-wide exchange rate. Designer Paris platform, and stable sales in Western Europe Cosmetics performed well, digital upskilling. The company NYX Professional Makeup saw and double-digit increases in driven by La Roche-Posay. said it made significant CURRENCY dynamic growth and opened Eastern Europe and Africa and In Latin America, sales on a advances with its sustainability CONVERSIONS its first stand-alone stores. the Middle East. Professional reported basis increased 0.9% initiatives; it was recognized Sales figures in non- U.S. currencies were L’Oréal Luxe saw growth of Products sales increased 12.1% to €1.87 billion, and were up by the Ethisphere Institute converted to the dollar 16.7% to €7.23 billion, and grew (up 3.4% like-for-like) to €3.4 4.6% like-for-like, driven by as one of the 2015 World’s using the following 6.1% on a like-for-like basis. billion, with the U.S., U.K. and double-digit gains for Active Most Ethical Companies for 2015 average exchange The division outperformed India the biggest contributors Cosmetics and L’Oréal Luxe. the seventh time, revealed rates from Oanda. com: €1=$1.1094; the market, the company geographically. Broken down Excluding Brazil, like-for-like the first results of its Sharing ¥1=$0.0083; £1=$1.5290; said, driven by dynamism in by region, L’Oréal’s sales in sales in Latin America grew Beauty with All sustainability 1 KRW=$0.0009; makeup and fragrance as well Western Europe grew 4.5%, or at a double-digit rate. Sales program, deployed its Share 1 Ruble=$0.0165; as e-commerce. Yves Saint 2.3% on a like-for-like basis, in Eastern Europe fell 3.5% to & Care Program in all of its R$1=$0.3047; CNY 1=$0.1607; 1 Laurent and Giorgio Armani to €8.04 billion thanks to all €1.53 billion (up 9.8% like-for- 68 markets, announced its Rupee=$0.0156; 1 continued to grow with strong divisions except Consumer like, with double-digit growth ambition to become carbon SFr=$1.0411; 1 HK$= fragrance and makeup sales. Products. L’Oréal said it in Russia, Turkey and Ukraine). neutral by 2020 and unveiled $0.1290; 1 SEK=$0.1185. Lancôme became China’s outperformed the market, In Africa and the Middle East, a partnership in Bolivia to number-one luxury beauty especially in Southern Europe, sales increased 28.1%, or 12.1% sustainably source quinoa brand and also saw sustained and saw strong growth in like-for-like, to €727.9 million, husk used in cosmetics.

30 WWD BEAUTY INC GERMANY’S NO. 1 SELECTIVE MAKEUP BRAND

MY BEAUTY MY WAY

ARTDECO cosmetic GmbH Germany, www.artdeco.com 2 3 UNILEVER PROCTER & GAMBLE CO. LONDON/ROTTERDAM, THE NETHERLANDS CINCINNATI

2015 BEAUTY SALES: 2015 BEAUTY SALES: $20.47 BILLION (EST.) / £18.45 BILLION (EST.) $17.6 BILLION (EST.) + 13.2% V. ’14 (EST.) - 11.1% VS. `14 (EST.) Main Brands: PERSONAL CARE: Axe/Lynx, Rexona/Sure/Degree, Clear Main Brands: Pantene, Head & Shoulders, Clairol, Herbal Essences, Wella, Scalp & Hair Beauty Therapy, TRESemmé, Sunsilk/Seda/Sedal, Timotei, Sebastian Professional, Nioxin, Vidal Sassoon, Aussie, Rejoice (hair care), Motions, Nexxus, Mods, Alberto V05 (except in the U.S. and Puerto Rico), CoverGirl, Max Factor (makeup), Hugo Boss, Lacoste, Escada, Christina Tigi, Brylcreem, Dove, Lux, Pond’s, Suave, Vaseline, Monsavon, Radox, Aguilera, Bruno Banani, Mexx, 007, Stella McCartney (fragrance), Gucci Duschdas, Black Pearl, Pure Line, 100 Recipes of Beauty, Silky Hands, St. (makeup and fragrance), Dolce & Gabbana (skin care, fragrance and makeup), Ives, Lifebuoy, Noxzema (except in Western Europe), Just for Me, Simple, Olay, SK-II, Gillette, The Art of Shaving, Old Spice (skin care), Natural Instincts, Impulse, Camay, Zest (except North America and the Caribbean), REN, Nice ’n Easy (hair color), Safeguard (body care), Secret (deodorant), Wella Kate Somerville, Dermalogica, Murad. Professional, Sassoon Professional (professional hair care).

Unilever made waves in early 2015 of delivering competitive growth 2015 was a watershed year for actress Sofía Vergara, the NFL’s Odell with a series of rapid-fire acquisitions through its core brands, focusing on P&G. Heavily impacted by foreign- Beckham and the launch of the Instant that signaled its intent to play in the innovation and marketing. Unilever exchange headwinds, net beauty Relief collection in North America. SK- prestige skin-care category, growing launched its Dry Spray deodorant sales dropped 11.1% to $17.6 billion, II posted double-digit gains boosted its portfolio with four companies in products across its Degree, Dove with 8.5% attributed to currency, by its Facial Treatment Essence the segment: REN, Kate Somerville, and Axe brands in North America. 1% to a drop in organic sales and the with help from the #ChangeDestiny Dermalogica and Murad. Cumulatively In hair care, key launches included remainder a loss from divestitures, campaign, which inspired women to they have combined annual sales Dove Advanced Hair Series globally, which included Rochas, Camay, Zest, share stories of defying age, gender of approximately €400 million, the TRESemmé Perfectly (Un)done Frédéric Fekkai and Wash & Go. On and other stereotypes. Olay, which according to the company. Between collection for curly hair and the Lux a constant-currency basis, sales slid has been struggling, showed signs of March and July, Unilever’s buying Luminique line in Japan. Unilever 2.5%. The company bid goodbye to a turnaround in several key markets, spree caused a stir on the market. also said it will increase its presence chief executive ofcer A.G. Lafley for including the U.S. and the U.K., “If we launch another mass-market in the prestige hair segment. Dove the second time, a leader who will be according to the company. During shampoo or skin cream, there will launched the Dove DermaSpa range, remembered for both passionately Alibaba’s ‘“Double 11” Shopping be an element of cannibalization. a high-end body-care line, in Europe. elevating beauty to new heights at Festival, China’s biggest shopping But as we step into the prestige Vaseline partnered with Direct Relief the consumer-products giant and day of the year, Olay was the number- business—that is all incremental for on the Vaseline Healing Project, which then ultimately overseeing its scale one international skin-care brand, us,” Unilever’s president of personal provides medical supplies and local back, accepting a deal in July that said P&G. In personal care, Old Spice care, Alan Jope, told WWD Beauty Inc health-worker training to support will transfer 41 beauty brands to continued its global expansion. In in October. Dermalogica, the largest individuals working in disaster areas. Coty, including CoverGirl and Max color cosmetics, CoverGirl forged a of the acquisitions, is the largest salon The Dove Self-Esteem Project reached Factor. The deal is expected to close partnership with Star Wars and Max skin-care brand globally, according to more than 19 million young people in in late 2016. Other P&G properties in Factor partnered with the estate of its new owner. The four brands will be 115 countries. Unilever also supported the merger include fragrances and Marilyn Monroe. In fragrance, launches run under Unilever’s Prestige activity its brands through increased digital consumer and professional hair-care included Gucci Bamboo within its Personal Care arm, with marketing, launching All Things Hair, brands, including Wella Professional, and Hugo Boss The Scent. P&G dedicated marketing and customer an online video channel that creates Clairol Professional, Nice & Easy, markets products in 180 countries; in development teams. Unilever’s content in partnership with vloggers, Natural Instincts, Hugo Boss, Escada fiscal year 2015 ended June 30, North Personal Care division saw overall which is live in nine markets. The and Stella McCartney. Coty says America accounted for 40% of total sales, including oral care, grow 13.2% company partnered with Vice Media the combined brands had sales of company sales, followed by Europe on a reported basis to €20.07 billion. and its new women’s channel Broadly about $5.9 billion. P&G is retaining with 26% and Latin America with 10%. Positive currency efects contributed to support several of its brands. In Pantene, Olay, Gillette and SK-II as it 7.6% to sales growth. The category September 2015, Gina Boswell, senior focuses on a strategy of fewer, bigger, accounted for 38% of the Anglo-Dutch vice president of personal care, USA, better. David Taylor, formerly group consumer-goods giant’s revenues and was named executive vice president president of global beauty, grooming 48% of its operating profit. Underlying and general manager, U.K. and and health care, succeeded Lafley as sales growth for the category stood at Ireland. Tamara Rogers was named ceo in November. Patrice Louvet took 4.1%. Unilever said that figure, while to her position in the U.S. Aurelien over leadership of the global beauty still below historical rates, improved Lis, formerly general manager for organization, and Alex Keith continues compared with 3.5% in 2014. The the Americas of Benefit Cosmetics, to oversee the skin- and personal- division’s operating margin increased was named ceo of Dermalogica in care businesses. In hair care, Pantene to 18.9%, from 18.7% a year earlier. January 2016. and Head & Shoulders had strong Its operating profit increased 11.6% years, including growth in the U.S. to €3.64 billion. Besides its inroads Head & Shoulders retained its spot as in prestige, Unilever said it made the world’s leading shampoo brand, progress toward its strategic goals benefiting from partnerships with

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www.senses-artdeco.com U.S. remained its largest market Miyake, Parfums Narciso especially designed for Chinese 7.9%; Latin America, up 10.9%, with 37% of sales, followed by Rodriguez, Parfums Elie Saab, consumers. In the rest of Asia, and the Africa-Asia-Australia the U.K. with 9% and China with Azzedine Alaïa. sales remained strong as sales zone, up 4.8%. EBIT for the 4 6%. Sales in emerging markets, under BPI grew and Shiseido’s Consumer business segment excluding China, grew 27%, Ultimune serum performed well. excluding special factors was THE ESTÉE led by Turkey, Brazil and South 2015 was a period of €771 million, up 13.6% year- Africa. E-commerce grew 28% significant overhaul for Shiseido, over-year, while Beiersdorf’s LAUDER COS. in fiscal 2015 and is expected which is seeking to globalize total revenues increased 6.4% to to reach $1 billion this year. and modernize its business €6.69 billion. NEW YORK Travel retail remains a high model. The company unveiled a priority, along with Lauder’s new positioning for the Shiseido 6 2015 BEAUTY SALES: brand with revamped products, 2015 BEAUTY SALES: expanding base of freestanding stores, which now number advertising, store counters and $11.1 BILLION (EST.) BEIERSDORF more than 1,500. John Demsey logo. Shiseido also re-organized + 1% VS. ’14 (EST.) HAMBURG, GERMANY was promoted to executive its management structure, 7 Main Brands: Estée Lauder, group president, with added with six regional headquarters 2015 BEAUTY SALES: established as of Jan. 1 this Aramis, Clinique, Prescriptives, responsibility for Clinique and $5.89 BILLION (EST.) JOHNSON & Lab Series, Origins, MAC, Bobbi the Men’s Skincare Group in year. Marc Rey was appointed €5.31 BILLION (EST.) Brown, Tommy Hilfiger, Kiton, addition to Aramis and Designer president and ceo of Shiseido JOHNSON 7.1% V. ’14 (EST.) La Mer, Donna Karan New York, Fragrances, Prescriptives, MAC, Americas; Louis Desazars was + NEW BRUNSWICK, N.J. DKNY, Aveda, Jo Malone London, Bobbi Brown, Jo Malone London, named president and ceo of Main Brands: Nivea, Eucerin, La Bumble and bumble, Darphin, Bumble and bumble, Tom Ford, Shiseido Europe, and Toru Sakai Prairie, Labello, 8x4, Hidrofugal, 2015 BEAUTY SALES: Michael Kors, Tom Ford Beauty, Smashbox, Rodin Olio Lusso, became president and ceo of Florena, Slek, Maestro. $5.57 BILLION (EST.) Shiseido Japan. In October, Smashbox, Ermenegildo Zegna, Le Labo, Editions de Parfums - 7% VS. `14. (EST.) Aerin Beauty, Marni, Tory Burch, Frédéric Malle and Glamglow. Shiseido announced it would Rodin Olio Lusso, Le Labo, Jane Hertzmark Hudis was reformulate high-end brand Solid growth from core brands Main Brands: Neutrogena (skin, Editions de Parfums Frédéric named group president, adding Clé de Peau Beauté. The Ayura Nivea and Eucerin was among body, hair and sun care, makeup), Malle, GlamGlow. La Mer, Darphin, Origins and brand was sold. As of Jan. 1, the drivers for Beiersdorf in Aveeno (skin, body, hair, sun and Aveda to her portfolio, as well 2016, Puig took over the Jean 2015, when total sales for its baby care), RoC, Clean & Clear, as the Estée Lauder and Aerin Paul Gaultier fragrance brand. Consumer business unit grew Vendôme (skin care), Bebe, Johnson’s (skin, body and baby The Estée Lauder Cos.’s brands she already oversaw. Shiseido’s 2015 performance 6.5% to €5.55 billion, boosted 3.1 care), Biafine (skin, body, baby growth in 2015 was driven by Both appointments took efect beat analyst expectations on percentage points by currency and sun care), Lubriderm (body color cosmetics, which has on Jan. 1, 2016, following the back of a continued wave efects. On an organic basis, care), Natusan, Penaten, Prim’Age now surpassed skin care to the announcement of group of tourists from China. For the sales grew 3.6%. The division (baby care), Elsker (body and become its largest category, president Lynne Greene’s 12-month period, Shiseido’s increased its market share in baby care), Le Petit Marseillais with lipsticks and foundation retirement. She will leave the domestic sales grew 7.7% to Europe’s mature countries as (body and hair care), Dabao the top sellers. In constant firm this June. an estimated ¥367.4 billion, well as in emerging geographies. (skin and body care), Piz Buin, currency, total company sales while international revenues Nivea was the world’s leading Sundown (sun care). rose 8%. The cosmetics and increased 12.4% to ¥488.86 skin-care brand, according to fragrance segments each grew billion year-over-year. Shiseido Euromonitor International data, 6%; hair care grew 5%. Skin changed the date of its fiscal and had organic sales growth Excluding currency impacts, care slid 5%. Fragrance growth year to close at the end of of 4.5%. Its key drivers were J&J’s beauty revenues rose 1.3% was driven by double-digit the calendar year 2015. In its deodorants, shower products 5 in 2015. In North America, the gains in the Jo Malone London, adjusted fiscal year ended and multipurpose creams. The Neutrogena Hydro Boost line was Tom Ford and Michael Kors Dec. 31, 2015, net sales on a launch of Nivea Protect & Care SHISEIDO CO. the number-one new line launched brands. Wider distribution and restated basis grew 12.6% to in Latin America also fueled in total mass skin care in the U.S. incremental sales from Frédéric TOKYO ¥763.06 billion, domestic sales growth. The brand increased its and Aveeno continued to grow in Malle and Le Labo also boosted grew 11.7% to ¥296.9 billion, market share in South Africa, 2015 BEAUTY SALES: body and facial care. In Asia- the category. In hair care, Aveda and international revenues Spain, Russia, Japan and the $7.11 BILLION [EST.] Pacific, beauty brands grew double gained distribution in salons, increased 13.3% to ¥466.16 U.K.; its sales declined in Italy, ¥856.27 BILLION [EST.] digits in the Pacific with the launch freestanding stores and travel billion. Adjusted operating China and Thailand. Eucerin saw of Neutrogena Hydro Boost and retail, while Bumble and bumble + 10.4% V. ’14 (EST.) income rose 77.4% to ¥37.7 a like-for-like sales increase of Aveeno Dermexa. An integrated expanded into more specialty Main Brands: Shiseido, Clé billion yen. In Japan, sales 5.4%, boosted by Eucerin Face marketing campaign targeting retailers. Skin care was led by La de Peau Beauté, Nars, Joico, growth was seen for the Elixir, and Eucerin Sun and strong sales teens helped drive Clean & Clear Mer and Origins, with additional Zotos, Shiseido Professional, Maquillage, Clé de Peau Beauté in France, Spain, South Africa sales up 19% in South Asia, while gains from innovations in the Aupres, Urara, Pure & Mild, Za, and Shiseido brands. Lower- and South Korea. La Prairie had in South Korea, Neutrogena grew Estée Lauder and Clinique lines. Sea Breeze, Tsubaki, Senka, priced products and hair care organic sales growth of 1.2%, 11%, boosted by the launch of the In December, the company D’ici la, Ipsa, Ettusais, Serge continued to see lackluster driven by its Caviar Collection Neutrogena Norwegian Formula invested in Have & Be Co. Lutens. BARE ESCENTUALS: sales. In China, prestige brands and new products, although line. Sales grew in EMEA thanks to Ltd., a South Korean skin-care BareMinerals. BEAUTÉ and e-commerce performed sales were negatively impacted share gains across the region by Le company that owns the Dr. Jart+ PRESTIGE well, but sales of midpriced by a decline in travel-retail sales. Petit Marsellais and its successful brand. In February 2016, Lauder ranges stalled. In January 2016, The division’s three biggest International: Parfums Jean introduction in Turkey. The launch acquired Paris-based niche Shiseido unveiled a revamped markets were Eastern Europe, Paul Gaultier, Parfums Issey of Neutrogena Visibly Renew, and fragrance brand By Kilian. The version of its Aupres brand, where like-for-like sales grew MARILYN MONROE PHOTOGRAPH BY SNAP/REX/SHUTTERSTOCK

January

ANNUAL 5th 20th 21th REVIEW Max Factor names Marilyn Dove introduces its P&G promotes David Taylor Looking back at the key Monroe global glamour immensely popular curly- to group president of Global movers, shakers and social ambassador. haired emojis as part of its Beauty, Grooming and Health media sensations that Love Your Curls tribute. Care. Six months later, he is rocked 2015. named president and chief BY ELLEN THOMAS executive ofcer.

34 WWD BEAUTY INC I‘M SEXY

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From the companies that posted stellar growth to those positive results from Johnson’s Skin care and makeup were Adult Vita Rich line in the Middle the primary growth drivers for that lagged behind, a quick overview of who was up—and East and Africa, also boosted privately owned Chanel in 2015, sales for EMEA. In Latin America, while its fragrance sales were who wasn’t—in the 2015 WWD Beauty Inc Top 100. Johnson’s brands outpaced flat. Growing 5% year-over- market growth. Neutrogena year, skin care was boosted Makeup Remover Wipes became by the launch of Hydra Beauty Top 10 Sales Gains the leading brand in that Micro Serum, which in just a segment in Brazil and Colombia. few months became Chanel's Neutrogena Norwegian Formula number-one skin-care sku and Catterton Partners 67 +144% became number one in the the top-selling moisturizing Rodan + Fields 49 therapeutic category due to strong serum in the U.S., France and +99.8% professional activity, and sun care Japan. Makeup revenues grew Faberlic 99 +46.3% gained share in Brazil due to the 1.5% overall, driven by the Sun Fresh line. RoC grew double lip category, which saw sales Walgreens Boots Alliance 32 +30.5% digits and growth for Johnson’s increase 18.5% due mainly to the Adult was driven by deodorants launch of the renovated Rouge Lush 34 +30.5% in Brazil and body cleansing Coco line. In fragrance, Chanel PdC Brands 75 +30.2% and moisturizing in Brazil and introduced Chance Eau Vive and Colombia. The company’s top Misia, part of the Les Exclusifs LG Household & Healthcare 19 +27.3% three markets—the U.S., China collection, both created by the and Brazil—together accounted house’s recently appointed Vogue International 61 +25% for 50% of beauty sales. In January perfumer, Olivier Polge. Chanel Amorepacific Group 12 2016, Jef Smith was appointed saw its strongest growth in +22.8% company group chairman, North Europe, the U.S. and Japan; Emami 77 +20.5% America for Johnson & Johnson the U.S., France and China Family of Consumer Companies. remained its largest beauty markets, accounting for 30% of sales. Christine Dagousset was named global president of the Top 10 Declines Fragrance and Beauty division, 2 taking over from Andrea d’Avack, Flat 8 who moved to the U.S. to work Tupperware Brands Corp. 58 -17.7% on Chanel’s sustainability Avon Products 9 -17.5% 23 CHANEL strategy. In January 2016, it Downs was announced that Maureen Belcorp 31 -16% NEUILLY-SUR-SEINE, FRANCE Chiquet, global chief executive ofcer of Chanel, would leave Nu Skin Enterprises 33 -12.9% 2015 BEAUTY SALES: her role, which would be taken $5.24 BILLION (EST.) over by chairman and co-owner Alticor 20 -11.6% 75 €4.72 BILLION (EST). Alain Wertheimer. The brand Ups Colgate-Palmolive Co. 17 -11.4% + 1% V. ’14 (EST.) opened its first beauty boutique Main Brands: Chanel No.5, in Florence, and reopened an Procter & Gamble Co. 3 -11.1% Allure, Coco, Coco Mademoiselle, expanded POS in Hong Kong’s Markwins International 60 -8.4% Coco Noir, Chance, Chance Ocean Terminal to cater to visitors from the Chinese Eau Fraîche, Chance Eau Johnson & Johnson 7 -7% Tendre, Chance Eau Vive, Mainland. No.19, Cristalle, Allure Homme, Able C&C 66 -6.9% Allure Homme Sport, Bleu de Chanel, Pour Monsieur, Antaeus, Egoiste, Platinum Egoiste, Les Exclusifs (fragrance), Sublimage, Les Temps Essentiels- 9 By Country Resynchronizing Skincare Program, Le Lift, Hydra Beauty, AVON CC Cream (skin care), Le Blanc (skin care, makeup), Rouge Allure, PRODUCTS Rouge Coco, Le Vernis, Inimitable, NEW YORK Inimitable Intense, Le Volume, 30 14 12 8 6 6 4 4 Sublime, Les 4 Ombres, Illusions 2015 BEAUTY SALES: U.S. France Japan Germany Italy U.K. China Brazil d’Ombre, Les Beiges, Vitalumière, $5.2 BILLION (EST.) Perfection Lumière, Joues - 17.5% VS. ’14 (EST.) Contrastes (makeup). 4 3 3 2 1 1 1 1 India South Switzerland Peru Russia Spain Ireland Hong Korea Kong

February

23th 30th 30th 3rd Puig nabs niche fragrance Markwins snaps up teeny- Four months after Chanel’s Macy’s acquires Bluemercury labels Penhaligon’s and bopper labels Bonne Bell Jacques Polge passes the for $210 million in cash. L’Artisan Parfumeur for and Lip Smacker, said to baton to his son Olivier, the an undisclosed sum. have sales of about $80 brand announces the younger million annually. Polge’s first fragrance, Misia, due in March.

36 WWD BEAUTY INC Main Brands: Anew, Avon, Avon hair-care products; hair-care sales Dior’s gains were boosted by Sulwhasoo, Laneige, Mamonde, Clearskin, Skin-So-Soft, Avon were flat in local currencies in the introduction of the men’s Innisfree and Etude, expanded. Naturals (skin care), Footworks the Americas. Sales for Kanebo scent Sauvage featuring Johnny Asian exports accounted for (foot care), Advance Techniques 10 Cosmetics were flat at ¥180 Depp in the advertising, as well 21% of revenues and grew 51% (hair care), Avon Color, Mark billion. Beauty accounted for as classic scents J’adore, Miss year-over-year to KRW 1.15 (makeup), Fergie (fragrance). KAO CORP. 41% of Kao’s overall revenues Dior and Dior Homme. Dior’s trillion. Sales in China grew TOKYO of ¥1.47 trillion, which grew makeup benefited from a more more than 50% on a constant- 2.8% year-over-year. Operating fashion-forward positioning and currency basis. AmorePacific In a December agreement with 2015 BEAUTY SALES: income for beauty increased new launches. Benefit Cosmetics also boosted its portfolio in North private-equity group Cerberus, $5.04 BILLION 3.5% to ¥29.4 billion, which gained market share in the U.S., America, increasing the number Avon began a seismic change ¥607.7 BILLION the company attributed to the Europe and Middle East, boosted of counters for Sulwhasoo and to the 130-year-old company’s + 3% V. ‘14 worldwide increase in sales and by digital communication. Make Laneige in the U.S and launching business structure. As of March 1, increased efciencies in expense Up For Ever expanded rapidly. both brands in Canada. The Main Brands: KAO: Bioré, 2016, the North America division, management. Fresh maintained high growth, company’s French subsidiary in Jergens, Curél (skin care), where sales have declined for especially in Asia, and opened its charge of the Lolita Lempicka Sofina, Est (skin care, makeup), several years, was separated into first counters in Europe. Bulgari and Annick Goutal brands saw Asience, Essential, Merit, Sifoné, a privately held company 80.1% accelerated its move upmarket declines in sales and profits. Feather, Liese, Blauné, Segreta, majority-owned and managed with Le Gemme fragrances. Cosmeceuticals subsidiary Cape, Prettia, John Frieda, Guhl, by Cerberus. The company said Pacific Pharma changed its Goldwell, KMS California (hair it would move headquarters 11 name to Aestura in March 2015. care), Aube (makeup), Ban from New York to the U.K., The company’s net profits grew (deodorant, except in Japan). and cut 2,500 jobs across the LVMH MOËT 35.5% to KRW 673.9 billion, while MOLTON BROWN: Molton business, as the latest pieces operating profits grew 38.6% to Brown (fragrance, skin care). of a three-year transformation HENNESSY 12 KRW 913.6 billion. KANEBO COSMETICS: Sensai, plan. Cerberus has become RMK, Suqqu, Aqua Sprina, Avon’s largest shareholder with LOUIS VUITTON AMOREPACIFIC Twany, Impress, Freeplus, Dew, a 16.6% stake in the overall PARIS Blanchir Superior, Freshel, Aqua company. Avon management GROUP Lunash (skin care, makeup), 2015 BEAUTY SALES: said the shift will allow it to focus SEOUL Lunasol, Cofret D’Or, Kate Tokyo, on the healthier international $5.01 BILLION 13 Lavshuca, Media (makeup), businesses representing about €4.52 BILLION 2015 BEAUTY SALES: Doltier, Lissage, Chicca (skin and 86% of revenues. Full-year total + 15.3% V. ’14 $4.94 BILLION (EST.) body care, makeup), Evita (skin, L BRANDS company revenue in 2015 fell 19% KRW 5.49 TRILLION (EST.) body and hair care; makeup), Allie, Main Brands: PERFUMES AND to $6.2 billion—excluding North + 22.8% V. ’14 (EST) COLUMBUS, OHIO Sala (sun and hair care), Suisai COSMETICS: Parfums Christian America, which was reported (skin care). Dior, Guerlain, Parfums Givenchy, Main Brands: AmorePacific, 2015 BEAUTY SALES: under discontinued operations Parfums Kenzo, Fendi, Pucci, Sulwhasoo, Hera, Primera, Lirikos, $4.6 BILLION (EST.) for 2015—pummeled by negative Acqua di Parma, Parfums Loewe, Iope, Hanyul, Laneige, Mamonde, 3.4% VS. ’14 (EST.) foreign exchange. Avon’s net loss + On a constant-currency basis, Benefit Cosmetics, Make Up For Verite, Innisfree, (skin care), Etude skyrocketed to $1.15 billion, up Main Brands: BATH & BODY Kao saw sales for its beauty-care Ever, Fresh, Nude. Kendo Brands: (makeup and skin care), Espoir from a loss of $389 million a year WORKS: Signature (body care, business increase 0.5% year-over- Bite Beauty, Formula X, Kat (makeup), Annick Goutal, Lolita ago. Accounting for the loss was fragrance), Aromatherapy (body year. Domestic sales softened, Von D, Marc Jacobs Beauty, Ole Lempicka (fragrance), Ryo, Mise $349 million from discontinued care), True Blue Spa (body and declining 0.8% to ¥412.3 Henriksen, Elizabeth and James, en Scene, Amos, Ayunche (hair operations and $797 million hair care), Liplicious (lip color). billion, largely due to increased Bulgari, Sephora. care), Happy Bath, Illi (body care), from continuing operations. On VICTORIA’S SECRET: XO Victoria, competition in the Japanese Spa Goa (professional hair and a constant dollar basis, beauty Victoria by Victoria’s Secret, market. Sales of cosmetics body care), MakeON (device), sales grew 3%, with 7% growth Victoria’s Secret Bombshell, fell 2.3% to ¥254.7 billion. In LVMH saw strong growth Aestura (cosmeceuticals). in fragrance, flat sales in skin Victoria’s Secret Heavenly, response, Kao revamped the Kao for its beauty activity in 2015. care and a 1% uptick in color. Victoria’s Secret Scandalous, Sofina brand in November, with Makeup accounted for 40% of Despite being challenged in Very Sexy, Very Sexy Now, the launch of Sofina IP products sales and skin care, 19%, both It was a year of strong growth 2015, Brazil continued as Avon’s Victoria’s Secret Tease, Eau So and a flagship store in Ginza, up 1 percentage point from the at home and abroad for largest market with 1.5 million Sexy, Victoria’s Secret Love Me, Tokyo. Kate Tokyo performed previous year. Fragrance’s share AmorePacific Group, which representatives. Despite the Victoria’s Secret Angel, Victoria’s well, with sales growing at home declined to 41%, from 43%. continued to ride the K-Beauty weak sales results, Avon ceo Secret Dark Angel, Victoria’s and in Asia, particularly China. Revenues in France accounted wave in 2015. The South Korean Sheri McCoy said, “The majority Secret Angel Gold, Victoria’s Skin- and hair-care sales grew for 12% of sales, and the rest of market, which accounted for of our top markets are growing Secret Forever Sexy, Rapture, 7.2% to ¥353 billion. In skin care, Europe, 26%. The U.S. accounted 78% of beauty revenues, saw at constant currency and are Victoria’s Secret Noir, Very Bioré UV products performed well for 14%, Japan 4%, the rest of 18% sales growth to KRW 4.28 profitable.” In July 2015, Avon sold Sexy for Him, Very Sexy for Him in Japan, Asia and the U.S. Hair Asia 29% and other markets 15%. trillion year-over-year. Chinese the natural skin-care brand Liz Platinum, VS Fantasies (fragrance, care grew in Japan but declined The division saw a significant tourists in particular boosted Earle to Walgreens Boots Alliance. body care), Victoria’s Secret Body in local currencies in the rest of improvement in profit from domestic sales and travel retail in Care (body care), Beauty Rush Asia, which Kao attributed to recurring operations, which South Korea, despite the MERS (lip), Victoria’s Secret Hair (hair the decision to narrow its brand grew 26.5% to €525 million, outbreak resulting in decreased care). ofering in the region. In Europe, driven by Parfums Christian tourist numbers from June to local-currency sales were driven Dior, Benefit, Guerlain and Make August. In the rest of Asia, the ARIANA GRANDE PHOTOGRAPHARIANA BY GRANDEAMY BY LOMBARD; BY BROADIMAGE/REX/SHUTTERSTOCK ZENDAYA by John Frieda and professional Up For Ever. Parfums Christian group’s major brands, including

13th 20th 23rd MAC Cosmetics enters a three- Ariana Grande inks a deal Teen queen Zendaya slams Giuliana year partnership with Camera with Luxe Brands to launch Rancic after the Fashion Police host Nazionale della Moda Italiana her first fragrance, due in ofends the singer with a comment on as the ofcial makeup sponsor October. her naturally textured hair on the Oscars of Milan Fashion Week. red carpet. Rancic later apologizes.

WWD BEAUTY INC 37 BY THE NUMBERS The Digital Pacesetters

Every year, L2 ranks beauty’s most widely known brands in its Digital IQ Index. In determining each brand’s score, L2 analyzes the efectiveness of a brand’s Web site International expansion and Coty initiated a major and e-commerce activities (40%); its digital marketing activities, particularly in terms of comparable store sales growth at transformation in 2015, as it Bath & Body Works drove sales at signed a megadeal for 41 P&G search, advertising and e-mail; (25%); its mobile and tablet optimization and innovation L Brands. At Bath & Body Works, brands that will ultimately double (20%), and its social media eforts on Facebook, YouTube, Instagram, Twitter and emerging including its home categories, its revenues. The merger includes platforms (15%). In 2015, Urban Decay supplanted L’Oréal Paris as the number-one brand revenue grew 5% to $3.59 billion. fine fragrances, color cosmetics on the list, moving up from gifted to genius. Number-two Maybelline New York and Benefit While total Victoria’s Secret sales and salon professional and retail Cosmetics also leapfrogged on the list to land in the Genius top five. grew 5% to $7.67 billion, sales of hair color and styling businesses, beauty—which accounts for about and is slated to close in the 15% or $1.14 billion in revenues— back half of calendar 2016. Coty Genius: 140 + weakened as the segment was also completed the purchase 1 Urban Decay: 149 3 Lancôme: 144 repositioned to better align of Bourjois from Chanel and 5 with Victoria’s Secret lingerie’s has already closed on Brazilian 2 Maybelline New York: 145 5 Benefit: 142 imagery, merchandising and firm Hypermarcas’ beauty arm, 3 L’Oréal Paris: 144 pricing elements, according to L an acquisition announced in Brands ceo Stuart Burgdoerfer. November. It also bought the While North America remains its digital marketing firm Beamly. Gifted: 110-139 core market, L Brands expanded While revenues were harmed by 6 Clinique: 138 19 Essie: 124 32 Aveda: 116 its international footprint, adding negative currency and overall 38 88 Victoria’s Secret Beauty & weakness in the fragrance 6 MAC: 138 19 NYX : 124 32 Make Up For Ever: 116 Accessories stores for a total of category, cosmetics was a 8 Kiehl’s: 137 19 Too Faced: 124 32 Shiseido: 116 373. Bath & Body Works added highlight with strong growth from 9 Estée Lauder: 135 22 Chanel: 123 35 E.L.F.: 115 Rimmel, Sally Hansen Miracle Gel 47 international locations for a 10 CoverGirl: 134 22 Dior: 123 36 Garnier: 114 total of 125. Airports, the U.K., and the added sales of Bourjois. South Asia, Latin America, China Marc Jacobs and the 2015 10 Olay: 134 22 Dove: 123 36 Proactive: 114 and Mexico have been prime launch Miu Miu fragrance line 12 Bobbi Brown: 133 22 Nars: 123 38 Charlotte Tillbury: 113 locations. The company also were standouts in the fragrance 12 Sally Hansen: 133 26 Origins: 122 38 Clarisonic: 113 revealed plans for a Victoria’s segment. Nearly half of Coty’s 14 BareMinerals: 132 27 Philosophy: 120 40 Clarins: 112 Secret flagship on New York’s sales came from Europe, the 15 Smashbox: 131 28 Tarte: 119 40 Laura Mercier: 112 Fifth Avenue and the remodel of Middle East and Africa. Upon the 145 Bath & Body Works stores. completion of the P&G merger, 16 Avon: 130 29 L’Occitane: 118 40 Murad: 112 Coty Inc. said it will reorganize 16 OPI: 130 29 Revlon: 118 43 Kat Von D: 110 into three divisions and will move 18 Neutrogena: 129 31 Giorgio Armani: 117 its executive headquarters to London. Coty Consumer Beauty will focus on color, hair color and 14 body care in the mass channel; Average 90-109 P&G’s Esi Eggleston Bracey will 39 44 Calvin Klein: 109 57 DermaBlend Professional: 103 69 Michael Kors: 98 COTY INC. serve as president. Coty Luxury 44 Dolce & Gabbana: 109 57 Mary Kay: 103 71 Perricone MD: 97 will oversee fragrances and skin 44 Vichy Laboratories: 109 57 Ralph Lauren Fragrances: 103 72 Deborah Lippmann: 96 NEW YORK care in the prestige channel and 44 Victoria’s Secret: 109 57 SK-II: 103 73 La Prairie: 95 2015 BEAUTY SALES: will be led by Edgar Huber. Coty Professional, to be helmed by 48 Fresh: 107 57 Stila Cosmetics: 103 73 Thierry Mugler: 95 $4.28 BILLION P&G’s Sylvie Moreau, will be 4.7% V. ’14 48 Simple: 107 57 StriVectin: 103 75 Prada: 94 - responsible for the hair and nail 50 Dermalogica: 106 63 Aveeno: 102 75 Ren Clean Skincare: 94 Main Brands: Balenciaga, Bottega categories in the salon channel. Veneta, Calvin Klein, Cerruti, 50 SkinCeuticals: 106 64 Burberry: 101 75 Wet ‘n Wild: 94 Chloé, Guess, Jil Sander, Joop!, 52 Jo Malone London: 105 64 Rimmel London: 101 78 Anastasia Beverly Hills: 93 Marc Jacobs, Nautica, Roberto 52 Yves Saint Laurent: 105 66 Christian Louboutin: 99 79 Formula X: 92 Cavalli, Vera Wang, Vivienne 54 Gucci: 104 66 Kate Somerville: 99 79 Marc Jacobs Fragrances: 92 Westwood, Chopard, Davidof, Miu 54 La Mer: 104 66 Marc Jacobs Beauty: 99 81 Hourglass: 91 Miu, Jovan, Nikos, Stetson, Vespa, 15 Jennifer Lopez, Truth or Dare by 54 La Roche-Posay: 104 69 Elizabeth Arden: 98 82 Nivea: 90 Madonna, Beyoncé, Celine Dion, HENKEL David Beckham, Enrique Iglesias, DÜSSELDORF Halle Berry, Katy Perry, Kylie Challenged: 70-89 Minogue, Lady Gaga, Tim McGraw 2015 BEAUTY SALES: (fragrance), Adidas, Playboy, 83 Artistry: 88 90 Trish McEvoy: 83 96 Lacoste: 76 $4.04 BILLION 21 Lancaster, Philosophy (skin and €3.64 BILLION (EST.) 83 Jimmy Choo: 88 91 Almay: 82 98 DKNY: 74 body care), Astor, Bourjois, CK One 85 Butter London: 86 92 Guerlain Paris: 80 99 Donna Karan New York: 73 Color, Manhattan, Miss Sporty, + 8% V. ’14 (EST.) 86 Sisley: 85 92 Ole Henriksen: 80 99 NYC New York Color: 73 N.Y.C. New York Color, Nicole by Main Brands: RETAIL: OPI, OPI, Rimmel, Sally Hansen Schwarzkopf, Syoss, Taft, Gliss 87 Bite Beauty: 84 94 Ponds: 77 101 Becca: 71 (color cosmetics). Kur, Schauma, Essence Ultîme, 87 Hugo Boss: 84 95 Viktor + Rolf: 76 102 Eau Thermale Avène: 70 87 Juicy Couture: 84 96 GlamGlow: 75 102 Nina Ricci: 70

March

27th 2nd 3rd 8th Gwyneth Paltrow invests Unilever acquires REN Quick to capitalize on the color craze Unilever plows further into in Juice Beauty, creating Skincare, its opening salvo in du jour, Sephora launches an app called the prestige beauty market, her own organic skin-care a series of prestige skin-care Sephora Pocket Contour Class that gives acquiring Dermalogica for an products. She'll also serve as acquisitions. personalized instructions for contouring. undisclosed sum. creative director of Juice’s color cosmetics line.

38 WWD BEAUTY INC

BY THE NUMBERS The Players

More than half of WWD Beauty Palette, Brilliance, Got2b, Perfect Hurt by an 11.5% negative Mousse, Paon, Fresh Light, Pert currency impact, Colgate- Inc’s 2015 Top 100 List comprises (hair care), Dry Idea (deodorant), Palmolive’s total sales fell 7% public companies—51 in all—with Fa, Dial, Tone, Right Guard (bath 16 to $16.03 billion, while overall and body care), Diadermine (skin global unit volume grew 1.5%. representation nearly evenly divided care). PROFESSIONAL: Igora, MARY KAY Personal care accounted for BC Bonacure, Osis, Silhouette, DALLAS 20% of company sales or about among North America, Europe and Asia. Indola, BlondMe, Essensity, $3.21 billion (including bar SexyHair, Alterna, Kenra (hair 2015 BEAUTY SALES: soaps), down from 21% in 2014. For the following charts, WWD Beauty care and color). $4 BILLION Organic sales in beauty grew Inc analyzed publicly available financial FLAT VS. ’14 in low single digits, driven by shower gels. Sanex Advanced, Main Brands: Mary Kay (makeup, data to see which firms performed the Sales from Henkel’s beauty- Palmolive Aroma Sensations skin, sun, bath and body care, care division, including oral care, and Palmolive Gourmet shower fragrance), TimeWise, Botanical best in a variety of areas. grew 8.1% to €3.83 billion in gels grew in Europe and the Efects, Satin Hands, Clear Proof 2015, and generated 21% of the South Pacific; the brand’s sales (skin care), Mary Kay At Play company’s total revenues. On an also grew in the Africa-Eurasia Able C&C (makeup), MKMen (men’s skin organic basis, beauty-care sales region. Sales in Asia were care, fragrance). Alès Groupe increased 2.1% year-over-year, boosted by Palmolive Naturals Allergan while currency efects accounted shampoos and conditioners. AmorePacific Group/Corp. for 4% of growth. Operating Last year the company shifted Revenue growth stalled for Mary profit increased 33.3% to €561 more promotional dollars to Avon Products Kay last year after three years million. Schwarzkopf, Henkel’s in-store activity. Latin America Bayer AG of double-digit increases, due to biggest beauty brand, saw sales represented 27% of Colgate’s Beiersdorf negative currency impacts. Skin of approximately €2 billion, on total sales, followed by North care remained its leading category Burberry PLC par with 2014. The division’s America with 20%. and the company has been Clorox Co. top 10 brands grew faster than successfully drawing younger Colgate-Palmolive Co. its overall beauty portfolio and women into the organization. accounted for more than 90% Compagnie Financière Richemont Otherwise, innovation was top of of sales. Henkel’s Beauty Care Coty Inc. mind as the 52-year-old direct- business unit saw strong growth Dabur India selling firm revealed plans for a in emerging markets, notably in 18 Elizabeth Arden new $100 million manufacturing Asia (excluding Japan). Double and research and development Edgewell Personal Care digit organic sales increases center in Lewisville, Tex. In March NATURA Emami in China were driven by strong 2015 Mary Kay expanded into online sales. Henkel Beauty Care COSMÉTICOS The Estée Lauder Cos. Colombia and exceeded its launched a strategic partnership Fancl Corp. annual sales goal there in the first SÃO PAULO with Alibaba for its beauty Godrej Consumer Products Ltd. month. Mary Kay, with 3.5 million brands. It saw double-digit 2015 BEAUTY SALES: beauty consultants, operates in Henkel AG growth in beauty sales in Latin 35 markets worldwide with 75% $2.41 BILLION Hermès International America; solid gains were also of its business abroad. Its largest R$7.9 BILLION Hypermarcas seen in Africa and the Middle markets in 2015 were the U.S., + 6.6% V. ’14 East as well as strong organic Inter Parfums Inc. China, Russia, Mexico and Brazil. growth in Eastern Europe. Main Brands: Chronos, Tez Johnson & Johnson Mature markets were negatively (skin care), Tododia (skin care, Kao Corp. impacted by competition and deodorant), Sou (skin, bath Kosé Corp. and hair care), Ekos (fragrance; promotional pressure, declining L Brands slightly year-over-year especially hair, skin and body care), Una LG Household & Healthcare due to Western Europe and (makeup, fragrance), Amis, Amó, mature markets in Asia-Pacific. 17 Essencial, Esta Flor, Biografia, Li & Fung Sales in North America grew. Humor, Kaiak, Kriska, Luna, Lion Corp. Henkel introduced Schwarzkopf COLGATE- #urbano (fragrance), Aquarela, L’Occitane Group in the U.S. Sales of professional Faces (makeup), Plant (hair L’Oréal PALMOLIVE CO. care), Sève, Erva Doce (body products in hair salons rose LVMH Moët Hennessy Louis Vuitton thanks to growth in North care), Natura Homem (men’s NEW YORK Mandom Corp. America resulting from its fragrance, skin and hair care), acquisitions of Sexy Hair, Kenra 2015 BEAUTY SALES: Mamãe e Bebê (mother and baby Marico Ltd. and Alterna in 2014. $2.95 BILLION (EST.) body and hair care, fragrance), Milbon Co. Ltd. - 11.4% VS. ’14 Naturé (children’s skin, body and Natura Cosméticos hair care), Fotoequilibrio (sun Main Brands: Palmolive, Speed Noevir Holdings Stick, Sanex, Protex, Caprice, Lady care), Aesop (65%). Nu Skin Enterprises Speed Stick, Softsoap, Irish Spring, Oriflame Cosmetics Tom’s of Maine (deodorant, skin Perrigo care, lip care). Pola Orbis Holdings Procter & Gamble PZ Cussons RB Revlon Shanghai Jahwa 16th 19th 27th Shiseido Ulta Beauty surpasses $1 P&G sells its Rochas fashion Shiseido announces it Tupperware Products Group billion in quarterly sales for and fragrance business to will distribute Burberry Unilever the first time, capping of a Inter Parfums SA. fragrances in Japan, sparking Walgreens Boots Alliance stellar year of sky-high profits. rumors of a potential skin- care partnership in the works for the designer label.

40 WWD BEAUTY INC

Natura significantly grew its Face Shop, Beyond (skin, hair contributor to the decline. Other targeting Sekkisei sales of ¥30 ColorSilk and Cutex, and partially business in international markets and body care; makeup, men’s key regions including Asia- billion in the year ended March ofset by lower Almay sales. In in 2015 to represent 27% of total grooming, fragrance), VDL (Violet Pacific and the Americas grew. 2016, and hopes the brand's Professional, organic sales grew sales, compared with 19% in Dream Luminous) (makeup). Gurwitch’s Laura Mercier ranked annual sales will grow to ¥50 2.4%, driven by American Crew, 2014. Natura’s export business 16th in dollar sales in the U.S. billion by 2020. American brand Revlon Professional and Cream saw net revenues grow 62.4% to prestige market, according to Tarte, acquired in 2014, surpassed of Nature, and partially ofset by R$2.31 billion. On the domestic LG Household & Healthcare NPD, with its face segment up expectations with sales growth lower CND nail sales in the U.S. market, however, net revenues attributed strong 2015 beauty 18% driven by Translucent Loose of 30%. Kosé also introduced the Revlon completed the integration dropped 6.6% to R$5.59 billion, sales to growth in luxury products Setting Powder. According to Spawake brand especially for the of the Colomer business, realizing impacted by the weak economic and gains in the duty-free channel, published reports, Moelis & Co. Indian market, opening 200 doors annualized cost efciencies of $35 environment, and by higher particularly with the Whoo brand. has been hired to sell the Laura there last year. million, upped brand marketing taxation and currency devaluation. In the luxury cosmetics sector, Mercier and RéVive brands, investment by $16 million and Sales for Natura in Latin America sales gained 60% year-over- which are said to generate strengthened its global Revlon outside Brazil increased 62.9% to year to KRW 1.2 trillion. Whoo’s $160 million and $15 million in brand “Love is On” repositioning. R$2.4 billion. Its total consultant revenues rose 88% to KRW 808 sales respectively. Total Alticor It sold of one of its oldest brands, numbers grew 8% to 1.9 million. billion on the back of a sharp Company sales slid 12% to $9.5 Ultima II. Known for its famous Aesop ended the year with 135 increase in Chinese customers, in billion. 22 faces, Revlon inked deals with Kylie stores in 18 countries, up from South Korea and Asia, including Jenner for SinfulColors nail polish, 98 stores and 14 countries a year China. Sales of Su:m37 grew 76%, REVLON Alejandra Espinoza for Revlon earlier, including the opening of while Belif increased 36% and and model Elaine Irwin for Almay. its first store in Brazil. Its net sales Ohui 20%. Belif launched in the NEW YORK The U.S. represents about 55% grew 78% to R$431.5 million. In U.S. in Sephora. Particularly strong 2015 BEAUTY SALES: of net sales, with its three largest Brazil, Natura introduced its Você first-half sales were somewhat international markets—Spain, 21 $1.91 BILLION Conecta program in July, giving muted by the MERS scare, but a Canada and Australia—accounting - 1.4% VS. ’14 consultants access to credit and strong recovery toward the end KOSÉ CORP. for approximately 15%. debit card readers, mobile phone of the year saw duty-free sales in Main Brands: CONSUMER: chips and an app for placing orders. South Korea up 112% year-over- TOKYO Revlon (makeup), SinfulColors, By December, 8% of orders were year. In July, LG acquired 70% of 2015 BEAUTY SALES: Pure Ice (nail color), Cutex (nail placed via the app. The Sou brand Korean color cosmetics contract $1.97 BILLION (EST.) care in North America, Spain and was successfully introduced in manufacturer Zenisce Co. The other select markets), Almay ¥236.97 BILLION (EST.) drugstores in São Paulo state, and company reported total sales of (makeup, skin care), Mitchum 17.3% V. ’14 (EST.) 23 will be rolled out in the channel KRW 5.3 trillion, up 13.9%, and + (deodorant), Charlie, Jean Naté across Brazil this year. Natura plans operating profit of KRW 684 billion, Main Brands: KoséCorp.: Cosme (fragrance), Revlon ColorSilk (hair GROUPE to open brand stores in shopping a 33.9% increase, in 2015. Decorte, Sekkisei, Visée, Esprique, color), Gatineau, Natural Honey malls this year to target urban Astablanc, Hadakiwami, Stephen (skin care). PROFESSIONAL: ROCHER consumers. Natura’s consolidated Knoll Collection, Prédia, Infinity, Revlon Professional, Intercosmo, ISSY-LES-MOULINEAUX, EBITDA fell 3.8% to R$1.5 billion, Fasio, Elsia Softymo, Je l’aime, Orofluido, UniqOne, Creme of FRANCE heavily impacted by higher taxation Jill Stuart, Addiction, Paul Stuart, Nature (hair care), CND Shellac, in Brazil and the weaker real. Tarte, Albion, Dr Phil Cosmetics, CND Vinylux (nail color), American 2015 BEAUTY SALES: 20 Rimmel (in Japan), Spawake. Crew, D:Fi (men’s grooming). $1.81 BILLION (EST.) €1.64 BILLION (EST.) ALTICOR - 3.5% V. ’14 (EST). Kosé was boosted in 2015 by While 2015 was a busy year for ADA, MICH. strong domestic sales, thanks Revlon, 2016 kicked of with two Main Brands: Yves Rocher, Daniel primarily to an increase in bombshells: In January, owner Jouvance (skin and body care, 19 2015 BEAUTY SALES: tourism from Mainland China. Ronald Perelman disclosed plans makeup, fragrance). Dr. Pierre LG HOUSEHOLD $2.13 BILLION (EST.) The company expected sales to to explore “strategic alternatives” Ricaud (skin and body care, - 11.6% V ’14 (EST.) inbound tourists to hit ¥16 billion for the company he has controlled makeup). ID Parfums (fragrance). STANHOME CHANGING LIVES: & HEALTHCARE Main Brands: AMWAY: Artistry, in the year ended March 2016. for more than 20 years. Then Stanhome, Kiotis (skin and body Beautycycle (skin care, makeup), For the nine months to Dec. 31, in February, Lorenzo Delpani, SEOUL care, fragrance). Flormar (51%). Artistry Men (men’s skin care), 2015, Kosé’s net sales increased president and ceo, announced 2015 BEAUTY SALES: Body Series/G&H (body care), 19.5% year-over-year to ¥178.46 he would be stepping down. His $2.25 BILLION (EST.) Satinique, Ertia (hair care). billion. Domestic sales accounted replacement, Fabian T. Garcia, Groupe Rocher’s beauty activity KRW 2.8 TRILLION (EST.) GURWITCH: Laura Mercier for approximately 84% of total a 13-year-veteran of Colgate- was negatively impacted by (makeup, skin care, fragrance), business. Kosé expanded the Palmolive, was named in March. + 27.3% V. ’14 (EST.) currency fluctuations in 2015. RéVive (skin care). presence of Sekkisei and Cosme Some analysts speculated Main Brands: Ohui, Whoo, Su:m37, Decorte internationally, and the move indicated a sale is At constant currency rates, its Belif, The Saga of Xiu, Isa Knox, Lac introduced dedicated sections for not imminent. Due to foreign beauty sales declined 0.9% year-on-year. Core brand Yves Vert, Vonin, CathyCat, Sooryehan Taking out negative currency Sekkisei, popular with Chinese exchange, Revlon's 2015 sales Rocher accounted for 65% of (skin care, makeup), On: The impact, Alticor’s beauty business tourists, at select Japanese declined a modest 1.4%, but total group sales, which declined Body, Say (body care), Frostine’s declined 3% in 2015. While there department stores. It plans to grew 4.9% in like-for-like terms. 3.9% to €2.06 billion. Stanhome (skin care), Fruits & Passion (body was constant dollar growth open such locations in China, Consumer sales rose 3.7% contributed 10% of sales, Dr. care, fragrance), Elastine, ReEn, in 70% of its top 20 markets, Malaysia and Singapore in the organically, spurred by Revlon Pierre Ricaud and ID Parfums 5%, Organist, Curair (hair care), The weakness in China was a chief near future. The company is cosmetics, Mitchum, Revlon

Flormar 4% and Daniel Jouvance KARDASHIANS PHOTOGRAPH BY MEDIAPUNCH/REX/SHUTTERSTOCK

April

31st 16th 20th Despite Brazil’s lagging The sisters Kardashian—Kim, Khloé and Elio Leoni Sceti is named beauty market, L’Oréal Kourtney—launch an eponymous hair-care chief executive ofcer of Coty finalizes its acquisition of line, a mass-market and salon venture with Inc. Two months later, he Niely Cosmeticos group, the Farouk Systems that includes tools and will be out—before actually nation's largest independent styling products. taking on the role. hair-color and -care company.

42 WWD BEAUTY INC    W   W

BEAUTY CEO SUMMIT  ŽfˆˆT 

MARLA MALCOLM BECK LAUREN BRINDLEY MUGE ERDIRIK DOGAN DAVID KIMBELL BLUEMERCURY INC. WALGREENS AMAZON.COM ULTA BEAUTY

WILLIAM P. LAUDER AURELIAN LIS PATRICE LOUVET KAREN BUGLISI WEILER THE ESTÉE LAUDER DERMALOGICA PROCTER & GAMBLE MAC COSMETICS COMPANIES INC.

summits.wwd.com ATTEND: KIM MANCUSO, [email protected], 646.356.4722 SPONSOR: ALEXIS COYLE,   ӎWT¤‹¤WŠŒ¤W‹ˆŽ

FAIRCHILD SUMMITS ANNUAL PARTNERS

EVENT SPONSORS BY THE NUMBERS View From the Profit Line

While passion drives the beauty industry, everyone needs money to fuel growth and reward investors. We analyzed operating income data— derived directly from beauty—to see who 1%. The company’s top markets ran the most lucrative businesses in 2015. Ranked by operating margin, or profit as a percentage were France, which represented 38% of sales, Germany, with 9% of sales, for the second year in a row Noevir came out in first place, with an operating margin of and Italy with 8%. Sales in brick- 25 25.6%, slightly down from its 26.2% in 2014, although it posted a 3.6% profit increase. Natura and-mortar stores represented was second with an operating margin of 19%, followed by P&G at 18.6%. Unilever, which came in 44% of revenues, mail order GROUPE second in 2014 with an 18.4% margin, slid to fourth with 18.1% in 2015. 22%, e-commerce 8% and door- CLARINS to-door 15%. The Yves Rocher Profit as % Company Beauty Sales Operating Profit brand opened a concept store on PARIS of Sales Boulevard Haussmann in Paris on 2015 BEAUTY SALES: the site of its first-ever boutique, Noevir Holdings Co. $282.28 Million $72.29 Million 25.6% $1.68 BILLION (EST.) which opened in 1969. Designed to ¥34.01 Billion1 ¥8.71 Billion1 +3.6% be an urban refuge, the three-floor €1.51 BILLION (EST.) store features a green wall by + 13.2% V. ’14 (EST.) Natura Cosméticos $2.41 Billion $475 Million 19% botanist Patrick Blanc. R$7.9 Billion R$1.5 Billion -3.8% Main Brands: Clarins (skin care, makeup), Clarins Men (men’s skin Procter & Gamble Co. $18.14 Billion2 $3.38 Billion2 -4.3% 18.6% care), Clarins Fragrance Group: Parfums Thierry Mugler, Parfums Unilever $22.27 Billion $4.04 Billion Azzaro. My Blend by Dr. Olivier €20.07 Billion4 €3.64 Billion4+11.6% 18.1% Courtin. 24 L’Oréal $28.02 Billion $4.87 Billion 17.3% €25.26 Billion €4.39 Billion +12.9% Driven by market share gains in GUTHY-RENKER LG Household & $2.21 Billion $351 Million 15.9% skin care, double-digit growth in Healthcare KRW 2.45 Trillion KRW 390 Billion +43.3% SANTA MONICA, CALIF. makeup and favorable currency efects, Groupe Clarins’ sales 2015 BEAUTY SALES: The Estée Lauder Cos. $10.78 Billion2 $1.61 Billion -12.1%2 14.9% grew an estimated 13.2% in $1.7 BILLION (EST.) 2015. Skin care accounted for an + 9.3% V. ’14 (EST.) Henkel $4.25 Billion $622.4 Million 14.6% estimated 55% of the privately €3.83 Billion6 €561 Million6 +33.3% Main Brands: Proactiv Solution, owned firm’s sales, fragrance Meaningful Beauty, Principal 35% and makeup 10%, the latter Beiersdorf $6.16 Billion $855.3 Million 13.9% Secret, X Out (skin care), growing its share in the portfolio €5.55 Billion5 €771 Million5 +13.7% Wen (hair care), Sheer Cover year-over-year. About 90% of (makeup). Groupe Clarins’ sales came Inter Parfums Inc $468.4 Million $61.2 Million +14.6% 13.1% from abroad; its largest markets were travel retail, the U.S., Fancl $394 Million $46.15 Million 11.7% U.K. and France. The strongest To increase Proactiv’s global ¥47.47 Billion3 ¥5.56 Billion3+19.3% distribution, Guthy-Renker inked a growth was seen in China, where deal in March 2016 to sell majority Clarins reinforced its presence LVMH Moët Hennessy $5.01 Billion $582.4 Million 11.6% ownership to Nestlé Skin Health by investing more in digital and Louis Vuitton €4.52 Billion €525 Million+26.5% SA, with plans to hold a minority other markets including Canada, stake and remain involved with Mexico and Thailand. The group Revlon $1.91 Billion $215.8 Million -8.4% 11.3% the brand. In 2015, Guthy signed also grew market share in Spain Sarah Michelle Gellar as a face of and the U.K. and created a Kosé Corp. $1.72 Billion $188 Million 10.9% Proactiv, which helped drive sales. subsidiary in Australia, buying ¥207.82 Billion3 ¥22.65 Billion3 +19.6% Proactiv is America’s number-one out its joint venture partner there. acne treatment system, according In October, Jonathan Zrihen Pola Orbis Holdings $1.67 Billion $176.7 Million 10.6% to the company. Wen hair care, became ceo, replacing Philip ¥200.57 Billion ¥21.29 Billion +28.8% which has sold more than 40 Shearer, who retired. Mandom Corp. $588.7 Million $58.1 Million 9.9% million bottles since launching, ¥70.93 Billion3 ¥7 Billion3 +2.1% remains embroiled in a class action 2 2 lawsuit filed in a California federal Coty Inc. $4.4 Billion $395.1 Million 9% court that alleges its products +1437.4% can cause scalp irritation and hair Oriflame Holding $1.34 Billion $100.5 Million 7. 5 % loss. Guthy also got a boost from €1.21 Billion €90.6 Million -4.3% growing sales of IT Cosmetics, which remains majority-owned Shiseido Co. $6.33 Billion $312.58 Million 4.9% by the founders, with a minority ¥763.06 Billion7 ¥37.66 Billion7 +77.4% investment by TSG Consumer Kao Corp. $5.04 Billion $244 Million 4.8% Partners. Guthy-Renker sells its ¥607.7 Billion ¥29.4 Billion +1% brands in 68 countries, with ofces in London, Tokyo, Sydney, Gurgaon, Elizabeth Arden $971.1 Million2 ($219 Million)2 -142.3% ------India and Malmö, Sweden. Sources and Methodology: Figures presented were gathered using publicly available corporate financial statements and based on reported numbers. 1 FY Ended September 30, 2015. 2 FY Ended June 30, 2015. 3 FY ended March 31, 2015. 4 Personal care division, including oral care. 5 Beauty care division, including bandages. 6Beauty-care division, including oral care. 7 Due to FY change, reflects nine months ended Dec. 31, 2015. May

24th 1st 6th 7th Fortnum & Mason Revlon makes a play for fragrance, Unilever strikes again, Softlips partners with an revamps its beauty floor, a acquiring CBBeauty, the U.K.-based snapping up Kate Somerville unlikely collaborator—the 7,000-square-foot space licensee and distributor of One Skincare for its growing mouthless Hello Kitty—on a designed as a modern take Direction’s teen dream scents. prestige portfolio. limited-edition collection of on a Georgian ladies’ salon. lip balms.

44 WWD BEAUTY INC Main Brands: L’Occitane en Main Brands: Pierre Fabre Provence (skin, hair, body and Dermo-Cosmétique: Eau men’s care; fragrance; makeup), Thermale Avène, A-Derma, 29 Galénic, Darrow, Glytone (skin and 26 27 L’Occitane au Brésil. Le Couvent des Minimes, Melvita, Erborian body care), Ducray, Klorane (skin POLA ORBIS PUIG (63%). ORIFLAME and hair care), René Furterer (hair care), Elancyl (body care). HOLDINGS BARCELONA HOLDING SCHAFFHAUSEN, TOKYO 2015 BEAUTY SALES: L’Occitane Group’s sales SWITZERLAND $1.63 BILLION (EST.) increase of 11.6% to €984.7 million Pierre Fabre Dermo- 2015 BEAUTY SALES: Cosmétique saw sales growth €1.47 BILLION (EST.) in the nine months ended Dec. 31, 2015 BEAUTY SALES: $1.67 BILLION 2015, was driven by fast-growing across all regions in 2015, when its + 10.4% V. ’14 (EST.) $1.34 BILLION ¥200.57 BILLION business in China, France, Brazil, sales excluding dermatology grew Main Brands: Prada Parfums, €1.21 BILLION + 8.7% V. ’14 Russia and Japan, where sales 12.1% to €1.16 billion. Asia was Valentino Parfums, Comme rose 19.1%, 12.9%, 11.1%, 8.7% - 4.3 % V. ’14 its fastest-growing region, with Main Brands: POLA: B.A, des Garçons Parfums, Carolina and 5.6% respectively in local Main Brands: Oriflame (makeup, China becoming the company’s Red B.A, Apex, Whitissimo, Herrera, Nina Ricci, Paco Rabanne, currencies. At constant currency, skin care, toiletries, fragrance). number-one subsidiary thanks Moistissimo, D (skin care, Penhaligon’s, L’Artisan Parfumeur, sales for the period rose 5.8%. to the ongoing success of Eau makeup), White Shot, Signs Shot Antonio Banderas, Shakira, Growth in China was maintained Thermale Avène and the launch (skin care), Muselle (makeup), Mango, Benetton, Agatha Ruiz de thanks to store expansion and The direct seller continued to of René Furterer in late 2014. The ORBIS: Orbis=U, Aqua Force, la Prada, Adolfo Dominguez. renovation as well as collaboration struggle in 2015, especially in the company posted double-digit Orbis=U Encore, Excellent White with online marketplaces. French CIS region, which represented 32% growth in most emerging markets, (skin care), Clear (skin care, sales grew due to resilient local of its business, down from 44% a led by China and Brazil, as well makeup). JURLIQUE: H2O Plus. 2015 was a year of double- demand, rapid e-commerce year earlier, as Oriflame increased as in mature markets including ACRO: Three (skin care, makeup), digit growth for Puig’s beauty growth and the company’s prices there to ofset devaluation Germany, Switzerland, the U.K. PdC: Pure Natural, 1 de Bijin, activity, as the firm bolstered its emerging brands. In Hong Kong, leading to negative efects on and Japan. It opened subsidiaries Liftarna (skin care). FUTURE presence in the niche category sales fell 9.7% as Chinese tourists volumes. Sales in the CIS countries in Australia, South Africa and LABO, DECENCIA. by acquiring Penhaligon’s continued to explore alternative fell 30% to €387 million. Business Japan, the latter for René Furterer. and L’Artisan Parfumeur. Key travel destinations. Sales in was strong in Latin America, Turkey, International sales accounted for 2015 launches included Paco branded stores accounted for Africa and Asia, which together 66% of business which, including Pola Orbis saw increases in Rabanne Olympea for women, 75% of business and grew 5.9% at accounted for nearly half of group dermatology, grew 11.2% to €1.28 consolidated revenues for the creating a masterbrand with the constant exchange, driven by store sales. In Latin America, revenues billion. Parent company Pierre sixth year running, boosted in Invictus scent. Other notable renovations and expansions and increased 12% to €136.9 million, Fabre Group saw total sales of Japan by the popularity of the introductions included Carolina online business, which grew 17.7% while sales in Turkey, Africa and €2.2 billion, a 4.2% increase. White Shot brand among inbound Herrera’s CH Men Privé, Nina at constant currency. The group Asia increased 33% to €424.5 tourists, notably from China. Ricci L’Extase, Prada Olfactories opened 83 new stores net over the million. In Europe, sales dropped International sales accounted for and Valentino Donna. On Jan. 1, period and renovated or relocated 5% to €253.4 million. Company- 11.9% of 2015 business. Pola’s 2016, Puig fully integrated the 89. Sales to external retailers wide constant-currency sales sales increased 9.8% to ¥109.35 Jean Paul Gaultier fragrance grew 5.4% at constant exchange, grew 1%, while Oriflame’s number billion, while Orbis’ revenues grew business into its portfolio, taking representing 25% of total revenues. of active consultants fell 7%. 7.7% to ¥56.35 billion. Jurlique’s 31 it over from Shiseido-owned BPI. To support its emerging brands, The firm restructured toward the sales grew 4.5% to ¥18.39 Puig has been the majority owner which are growing at double-digit end of the year, implementing billion, while H2O Plus declined BELCORP of Jean Paul Gaultier fashion rates, L’Occitane opened new decentralized regional operations 19.1% to ¥3.94 billion as it began since 2011. stores for Erborian in Russia, Hong and setting up a global commercial LIMA, PERU restructuring. The latter two Kong and South Korea, as well division for central functions in brands struggled in China. Aside 2015 BEAUTY SALES: as for Melvita and L’Occitane au sales, marketing, supply chain and from sales to incoming tourists, $1.19 BILLION (EST.) Brésil. At constant currency, the manufacturing. It also rolled out a Pola Orbis saw stagnation in the 16% V. ’14 (EST.) L’Occitane brand grew 5% in the six new digital platform to all markets. - domestic market. Nevertheless, months ended Sept. 30, while the Main Brands: L’Bel, Ésika, Three and Decencia, two of its 28 company’s emerging brands grew Cyzone (skin, body and hair care; developing brands, performed on average 24%, led by L’Occitane fragrance, makeup). well, with the former posting L’OCCITANE au Brésil and Erborian. 60% sales growth and the latter doubling sales thanks to an GROUP 30 The Peru-based direct seller increased number of customers PLAN-LES-OUATES, was again severely impacted by and average spend. Yoshikazu SWITZERLAND GROUPE currency depreciation in Latin Yokote became representative America, with sales falling 16%. director and president of Pola Inc., 2015 BEAUTY SALES: PIERRE FABRE In local-currency terms, revenues on Jan. 1, 2016. In January, Pola $1.42 BILLION (EST.) BOULOGNE, FRANCE fell 1%. Venezuela accounted Orbis announced it would liquidate €1.28 BILLION (EST.) for about 3% of the overall sales its Russian subsidiary due to + 13.3% V. ’14 (EST). 2015 BEAUTY SALES: decline; sales there declined $48 declining market conditions there. $1.29 BILLION million as the company scaled €1.16 BILLION back its operations. The three + 12.1% V. ’14 biggest markets for Belcorp,

June

10th 25th 1st A scathing New York Times Kendall Jenner’s heart-shaped hair A Vanity Fair cover introduces exposé prompts a statewide photo, posted on this day, will become the world to Caitlyn Jenner, investigation into the New the most-liked post on Instagram of 2015, the woman formerly known York nail salon industry. with 3.2 million likes, eclipsing sister (and as Bruce. former record-holder) Kim Kardashian’s wedding photo with Kanye West.

WWD BEAUTY INC 45 which is present in 15 countries, Alliance announced its intention sales, which rose 26% on a like- Beauty Box partnered with were Peru, Colombia and Mexico. to acquire Rite Aid for $17.2 billion. for-like basis. Its top-performing retailer C&A to introduce corners Esika accounted for 48% of sales, The merger is expected to be markets were the U.S. and U.K., in six stores and opened nine Cyzone 31%, and L’Bel 20%. Key completed in the second half of where sales rose 40.7% and new outlets. Grupo Boticário’s 37 launches included the Esika Pro calendar 2016. 35.6% respectively. Sales in Japan, total retail sales for the year professional makeup line and Lush’s third market accounting increased 8.6% to R$10.1 billion. EUROITALIA high-end fragrances under each for 10% of sales, fell 4.6%. The CAVENAGO, ITALY brand. company invested in launching larger stores in prime locations, 2015 BEAUTY SALES: including a 9,500-square-foot $808.29 MILLION 33 store on London’s Oxford Street € 728.58 MILLION that opened in April, and said it is 36 + 7.2% V. ’14 NU SKIN actively seeking to open similar 32 flagships in other markets. Lush ELIZABETH Main Brands: Versace, Moschino, ENTERPRISES launched 214 new products in 2015 Missoni, John Richmond, Reporter (fragrance), Naj-Oleari (makeup). WALGREENS PROVO, UTAH and was present in 50 markets. ARDEN NEW YORK BOOTS 2015 BEAUTY SALES: ALLIANCE $1.15 BILLION (EST.) 2015 BEAUTY SALES: Launch activity propelled - 12.9% V. ’14 (EST.) $962 MILLION (EST.) EuroItalia to a solid sales increase DEERFIELD, IL. - 6.7% VS. ’14 (EST.) in 2015. Versace Eros pour Femme Main Brands: Nu Skin (skin, body 35 EdP drove sales, as did Moschino 2015 BEAUTY SALES: and hair care), AgeLOC, Tru Face Main Brands: Elizabeth Arden Fresh Couture and Missoni scents, $1.16 BILLION (EST.) (skin care), Epoch (skin, body and GRUPO (skin care, makeup, fragrance), with the latter two fragrances + 30.5% V. ’14 (EST.) hair care), Nu Colour (makeup). Britney Spears, Elizabeth Taylor, introduced in December in Italy Jennifer Aniston, Justin Bieber, as well as in select international Main Brands: No7, Seventeen, BOTICÁRIO Mariah Carey, Nicki Minaj, Taylor doors, to be followed by a global Boots Expert, Boots Extracts, Currency impacts and weaker- CURITIBA, BRAZIL Swift, Juicy Couture, Alfred Sung, rollout this spring. Exports Natural Collection, Botanics, than-expected sales of a new BCBG Max Azria, Geofrey Beene, continued to account for 92% of Boots Laboratories, Boots Soltan, 2015 BEAUTY SALES: essential oils line in China, its Halston, Ed Hardy, John Varvatos, EuroItalia’s revenues, with the U.S., Soap & Glory, Liz Earle, Sleek $1.01 BILLION (EST.) largest market, contributed to Nu Lucky Brand, Rocawear, Wildfox the Middle East, China, the U.K., MakeUP. R$3.31 BILLION (EST.) Skin’s decline in beauty. During Couture, Curve, Giorgio Beverly Germany and Italy its top markets. 6.4% V. ’14 (EST). the year Nu Skin named Ryan + Hills, PS Fine Cologne, White Sales in Russia declined, due to Napierski president of global sales Main Brands: O BOTICÁRIO: Shoulders (fragrance). the economic situation there, with Following its creation on and operations and entered Chile, Nativa Spa (body and hair care), brand sales dropping between Dec. 31, 2014 (through the its 54th market. In 2015, 89% of Make B., Intense (makeup), 20% and 30% year-over-year. combination of Walgreens and Nu Skin’s total revenues of $2.25 Floratta, Egeo Dolce, Malbec Elizabeth Arden’s 2015 sales Alliance Boots), Walgreens Boots billion came from outside the U.S., (fragrance), The Beauty Box (hair, were impacted by a decline in Alliance became a new public with Greater China logging sales bath and body care), EUDORA, celebrity scents, foreign currency company, trading on Nasdaq of $772 million followed by North QUEM DISSE, BERENICE. headwinds and fewer fragrance under the ticker symbol WBA. Asia with $687 million. launches. Key introductions Stefano Pessina was named included Elizabeth Arden’s 38 executive vice chairman and In what it described as a Superstart Skin Renewal Booster, chief executive ofcer of the difcult year, Grupo Boticário John Varvatos’s Dark Rebel, Juicy new entity in July 2015. The DABUR opened 75 stores, more than its Couture’s I Am Juicy Couture company bolstered its beauty initial plans for 50 new outlets, and Wildfox fragrances. Sales of INDIA LTD. portfolio in 2015, snapping 34 prestige fragrances accounted ending 2015 with 3,962 outlets up Liz Earle from Avon in July, GHAZIABAD, INDIA operating under its four banners for 60% of Arden’s business following its acquisition of Soap LUSH in Brazil. It launched 1,300 and the Elizabeth Arden brand, 2015 BEAUTY SALES: & Glory in November 2014. It POOLE, U.K. new products and pioneered 40%. Its strongest markets are $801.5 MILLION (EST.) also bought U.K.-based color 3-D skin for testing. The firm Asia, North America, the U.K. 51.38 BILLION RUPEES (EST.) line Sleek MakeUP to accelerate 2015 BEAUTY SALES: restructured its business model and travel retail. In September its international growth. + 12% V ’14 (EST.) $1.03 BILLION (EST.) to improve efciency, creating the company established a joint The No7 brand performed Main Brands: Vatika Professional, £676.52 MILLION (EST.) departments for franchising, venture with Asian prestige well. For the year ended Aug. Dabur Amla, ORS (hair care), + 30.5% V. ‘14 (EST.) business development, corporate beauty distributor Luxasia. In 31, 2015, Walgreens Boots Fem, Gulabari, OxyLife, New Era, and human and organizational July, JuE Wong, previously ceo of Alliance announced net sales Main Brands: Lush Fresh DermoViva (skin care), Vatika development. Core brand O the StriVectin and Astral brands, of $103.4 billion, a 35.4% Handmade Cosmetics (bath, (hair and skin care), Hobby Boticário ended the year with was named president of the increase year-over-year. Retail body, hair and skin care). Gorilla (skin, hair and bath care; shave 3,760 stores and launched 402 Elizabeth Arden brand; in March pharmacy U.S. sales grew 6% Perfume (fragrance). preparations). new products. Direct-sales brand 2016, George Cleary, formerly to $8.1 billion. Retail pharmacy Eudora opened two stores and ceo of Iluminage, was named international sales were $8. 8 four kiosks during the year. Quem president of global fragrances. billion, growing an estimated Lush’s increased investment International business was Disse, Berenice opened 12 new 3.6% in comparable terms. In in customer service and product one of the key growth drivers for stores, increasing its number October 2015, Walgreens Boots and brand training drove its 2015 Dabur in 2015, when beauty sales to 142. Multibrand retailer The ANDREJA PEJIC PHOTOGRAPH BY PIXELFORMULA/SIPA/SIPA/REX/SHUTTERSTOCK

July

2nd 12th 9th Make Up For Ever signs P&G launches Gillette In the megadeal that echoed around the beauty world, transgender model Andreja Shave Club. Coty Inc. announces it will acquire 43 P&G brands (later Pejic. reduced to 41), a deal that promises to permanently alter the competitive landscape of beauty and catapult Coty from the 12th largest company in the WWD Beauty Inc Top 100 to number five when it is completed. PHOTO CREDIT TKHERE CREDIT PHOTO

46 WWD BEAUTY INC BY THE NUMBERS Top Performing Stocks

Asian companies ruled the beauty stock world in 2015 claiming all positions in the Top 10 list. At the head of the class is Japanese company Kosé, which drew attention from abroad increased strongly. In local currencies, sales increased investors with robust estimated sales growth of 17.3% — sending its stock up 138.6%. At 0.4% due to the depreciation of number 10 is Godrej Consumer Products of India, whose strong sales of new products drove the rupee against the dollar. After 40 revenues up an estimated 11.7% and its stock price up 38.6%. Including the aforementioned, restructuring in 2014, business there are six Japanese, two Korean and two Indian firms represented. picked up for the U.S.-based JOHN PAUL Namaste brand, growing by double digits in the second half MITCHELL TOP 10 of the year. Dabur continued to 1. Kosé Corp. 2. Amore Pacific Corp. concentrate on innovation and SYSTEMS Performing 4922:JP $93.54 090430:KS $373.05 new product launches including ¥11270 LOS ANGELES Beauty Stocks KRW414,500 DermoViva Skin Lotions and Body Wash internationally, and 2015 BEAUTY SALES In 2015 Stock 75 300 hair oils from Dabur and Vatika $757 MILLION (EST.) Symbol +86.71% YR END 2014 and facial bleaches from OxyLife + 8.4% V. ’14 (EST) +138.6% in India. YR END 2015 50 $199.80 Main Brands: Paul Mitchell, KRW222,000 Awapuhi Wild Ginger, Mitch, Data used was closing price $39.22 ¥4725 MarulaOil (hair care), Tea Tree on the last day of the year 25 100 (hair and body care), Paul Mitchell the stock was traded. The Color (professional hair color). 0 0 39 2014 2015 2014 2015 MARICO LTD. John Paul Mitchell Systems 3. Lion 4. LG Household 5. Noevir Holdings MUMBAI launched a new five-piece hair 4912:JP & Healthcare 4929:JP treatment line, MarulaOil, across 2015 BEAUTY SALES: $9.50 051900:KS the 30,000 salons where its ¥1144 $945 $29.05 $799.7 MILLION (EST.) products are sold. Initial orders KRW1,050,000 ¥3500 51.26 BILLION RUPEES (EST.) exceeded expectations by double + 13.9% VS. ’14 (EST.) digits. The new brand deviated +81.59% $560.70 +68.54% +66.19% 6 $17.48 from other product lines in that KRW623,000 Main Brands: Parachute, Livon, $5.23 ¥2106 it did not feature Paul Mitchell Nihar Naturals, Hair & Care, ¥630 Caivil, Black Chic (hair care and branding on its packaging—a step 3 300 10 color), Parachute Advansed the company is taking to create (hair and body care), Set Wet a more discernible portfolio of brands. Line extensions from 0 0 0 (deodorants and hair styling), 2014 2015 2014 2015 2014 2015 Fiancée, Hair Code (hair care and Awapuhi Wild Ginger and Mitch styling), Code 10, X-Men (men’s also drove sales. grooming). 6. Pola Orbis 7. Milbon Co. Ltd. 8. Shiseido Co. 4927:JP 4919:JP 4911:JP $66.57 $41.00 Marico grew sales at home and ¥8020 ¥4940 abroad in 2015. Its anti-hair loss 60 37.5 24 $20.99 41 ¥2529 segment was driven by Parachute +65.19% +50.84% Advansed Ayurvedic Oil growing 40.30 $27.18 16 +49.38% 48% year-over-year. In October SISLEY ¥4855 ¥3275 $14.05 2015, Marico acquired a 45% PARIS ¥1693 stake in skin care manufacturer 20 12.5 8 2015 BEAUTY SALES: Bellezimo Professionale Products, which ofers professional $744.4 MILLION products to beauty salons in €671 MILLION 0 0 0 2014 2015 India. It reduced prices for its + 5.2% V. ’14 2014 2015 2014 2015 Parachute oils by 6% in response Main Brands: Sisleyä (skin 9. Marico 10. Godrej Consumer to falling commodity prices. In and body care), All Day All Vietnam, Marico remained the Year, Hydra Global, Supremÿa, Marico:NSE Products Ltd. market leader in men’s shampoos Botanical D-Tox, Masque Crème GODREJCP:NSE and number two in deodorants à la Rose Noire, Global Perfect with its X-Men range, launching $20.65 Pore Minimizer, Sisleyouth, Black $3.53 1324 Rupees new products in both categories. Rose Oil, Sunleÿa GE, Phytoblanc, 4 226.3 Rupees 20 In the Middle East, Parachute Emulsion Ecologique (skin care), $2.54 +38.64% +38.8% $14.90 Gold hair care was revamped. Sisleÿum (men’s skin care), Eau 163 Rupees 2 955 Rupees de Campagne, Eau du Soir, Soir de Lune, Eaux de Sisley, Eau 0 0 2014 2015 2014 2015

August

21st 27th 3rd 14th JuE Wong, former ceo of the Marc Rey is named president Bam! Unilever acquires cult The impressive Instagram StriVectin and Astral Brands, is and chief executive ofcer of California skin-care brand following of Anastasia named president of Elizabeth Shiseido Americas. Dermalogica. Beverly Hills reaches 6.3 Arden. As the brand retools, million, aided by the surge her experience in the emerging of user-generated content Asian market will be key. around the brand.

WWD BEAUTY INC 47 Tropicale, Eau d’Ikar, Soir d’Orient 2015 BEAUTY SALES: and hair care; fragrance), Tancho (fragrance), Phyto-Teint Expert, $663 MILLION (EST.) (hair care and color), Spalding Phyto-Lip Twist, Phyto-Eye Twist, 42.5 BILLION RUPEES (EST.) (deodorant, fragrance, body care). (makeup). 44 WOMEN’S COSMETICS: Lúcido-L 43 + 11.7% VS. ’14 (EST.) (hair care and color), Baby Veil SHANGHAI YANBAL Main Brands: Darling, Ilicit, (hair care), Lovillea (fragrance), Family-owned Sisley reported Issue, 919, Renew, Inecto, Touch of Miratone (hair color), Mandom steady organic growth in every JAHWA UNITED INTERNATIONAL Silver, Roby, Godrej Nupur, Godrej (hair and skin care), Johnny region and all product categories LIMA, PERU Expert, Shikakai (hair care). Andrean, Style Up (hair care), in 2015. Its largest markets CO. LTD. Crowning Glory, Swastik (hair and Simplity (deodorant), Pucelle 2015 BEAUTY SALES: body care), Cinthol, Godrej No 1, remained France, China, South SHANGHAI (fragrance, body care). WOMEN’S Korea and the U.S.; it saw the $684.8 MILLION (EST.) Godrej Fairglow, Godrej Shaving COSMETICS: Pixy (skin care, strongest growth in the U.S., 2015 BEAUTY SALES: FLAT VS. ’14 (EST.) Cream, Soft & Gentle, Villeneuve, makeup), Bifesta, Barrier Repair $742 MILLION (EST.) Tura (skin care), Pamela Grant Japan and Europe. Sisley’s Main Brands: Perfect Ten, Prolong (skin care). (makeup). subsidiaries in Brazil and South CNY 4.62 BILLION — Color, Hydra Lip, Perfect Cover, Africa also performed well. Its (EDITORS' EST.) Clic Cosmetics (makeup). Elixir digital business grew strongly, + 4.3% V. ’14 (EST.) de Vida (skin care and makeup), Strong sales of the Lúcido brand, Godrej Consumer Products’ although it continued to represent Sentiva, Totalist (skin care), Miss Lúcido-L hair care, Mandom body Main Brands: Maxam, Fresh Herb growth in 2015 was boosted by a small proportion of overall sales. Amour, Liberatta, Gaia by Unique, care and Bifesta skin care fueled (skin and body care), Liushen launch activity, which accounted Founder Count Hubert d’Ornano, CCORI, Temptation, Unique, growth for Mandom. In Japan, its (body care), GF (men’s skin and for 40% of its sales increases. who built Sisley into a global Adrenaline, Solo for Men, OHM largest market which accounts hair care; fragrance), Herborist The company maintained its beauty powerhouse, passed away Black (fragrance), Total Block (sun for about 60% of business, sales Shanghai Vive, Tea Beauty (skin dominance in hair color and in September. care) Body Spa, Bio Milk (body rose 5.7% to ¥34.33 billion in the care, fragrance, makeup), Dr. Yu ventured into premium hair care care), Bio Fruit, Kids by Unique nine months ended December (skin care), Giving (baby care). with BBlunt, a brand in which it (hair care, fragrance), Bio Efective 31, despite the sluggishness of its took a 30% stake in 2013. Cinthol (deodorant). leading brand Gatsby. Indonesia led value and volume growth in the and Malaysia are Mandom’s 2015 was a year of consolidation skin-care market. In September second- and third-biggest 42 for Shanghai Jahwa United Co. Ltd. 2015, the firm purchased the markets; a fire at its Indonesian Direct seller Yanbal, already China continued to account for remaining 40% stake it did established in 10 countries, subsidiary caused a drop in the majority of the firm’s revenues, not already own in Argentina’s RB acquired North Carolina-based sales there at the end of the year. although its Herborist brand made Cosmetica Nacional. International BERKSHIRE, U.K. jewelry direct seller Lulu Avenue Mandom increased spending on inroads in international markets, launches included line extensions in March 2016 for $500,000 from promotions and advertising to aid 2015 BEAUTY SALES: opening its first international for Pamela Grant makeup in Chile Charles & Colvard, taking its first international expansion eforts in flagship store, in Paris, in April and new Soft & Gentle deodorants $744.2 MILLION (EST.) step into the U.S. market through Cambodia, Laos, Myanmar and 2015. Jahwa’s cosmetics sales for the Indonesian market. For the £486.7 MILLION (EST.) which beauty could follow. For Vietnam. While men’s grooming grew 3.1% to CNY 2.10 billion, while nine months ended Dec. 31, 2015, + 5.8% V. ’14 (EST.) several years, Yanbal has been is its most important category, personal care jumped 14.7% to Godrej reported total sales, which operating a beauty R&D center in women’s cosmetics is being Main Brands: Clearasil, E45 CNY 3.61 billion. (Personal-care includes its liquid detergents, Florida to keep it close to global targeted for growth. (skin care). Veet (depilatories). numbers also include oral care air fresheners and household trends. Last year Yanbal introduced and other nonbeauty products, insecticides businesses, of 66.91 Liberatta, a fragrance designed by estimated to account for 30 to billion rupees, up 8.6% year-over- French perfumer Arnaud Winter. Formerly named Reckitt 35% of sales.) While cosmetics year. Domestic sales for the period Along with Peru, Yanbal is sold in Benckiser, RB reported growth grew, the category slid as a grew 9% to 35.4 billion rupees. of 9% to £3.59 billion for its percentage of company sales Bolivia, Colombia, Ecuador, Spain, 47 hygiene division, which includes from 38% in 2014 to 36% in 2015. Guatemala, Italy, Paraguay, Mexico its Veet, E45 and Clearasil beauty New products contributed 9.3% and Venezuela. According to the EDGEWELL brands, in 2015. Like-for-like to the firm’s bottom line in 2015, most recent published estimates, growth for the division stood at up from 5.7% a year earlier. These the company has annual sales of PERSONAL CARE 3%. According to provisional data included Extraction Fluid Facial $856 million, including jewelry. 46 from Euromonitor International, Mask and Light Makeup Series ST. LOUIS Veet saw 2015 retail sales grow 6% from Herborist. E-commerce was MANDOM CORP. 2015 BEAUTY SALES: to $702 million, while Clearasil’s another focus for the company, OSAKA, JAPAN $572.7 MILLION (EST.) retail sales rose 1.4% to $234.8 as it opened an ofcial Shanghai - 4.6% VS ’14 (EST.) million. RB’s body-care business Jahwa flagship on Alibaba’s Tmall in 45 2015 BEAUTY SALES: was relatively flat with retail sales August. The company's total sales, $610.3 MILLION (EST.) Main Brands: Banana Boat, of $21.1 million. Veet remained the which include cosmetics, personal ¥73.53 BILLION (EST.) Hawaiian Tropic (sun care), GODREJ Skintimates, Edge, Schick world’s leading hair-removal brand, care, home care and agent sales + 3.8% V ’14 (EST.) and introduced Silk & Fresh hair of Kao products, increased 9.6% CONSUMER (shave preparations). removal cream for sensitive skin to CNY 5.85 billion, while its gross Main Brands: MEN’S and the Natural Inspirations range profits increased 4.9% to CNY PRODUCTS LTD. GROOMING: Gatsby (skin, based on 90% natural ingredients. 3.41 billion. body and hair care; hair color, In July Energizer Holdings MUMBAI fragrance, deodorant), Lúcido spun of its sun care, shaving and (skin, body, hair and scalp care; feminine care businesses into a JESSICAALBA PHOTOGRAPH BY HENRY LAMB/PHOTOWIRE/BEIMAGES/REX/SHUTTERSTOCK deodorant), Mandom (skin, body new company, Edgewell Personal

19th 21st 28th Hot on the heels of a controversy regarding François Nars and Steven Miller Harris founder Lyn the efcacy of her sunscreen, Jessica Alba Klein announce collaboration. Harris launches Perfumer H. launches Honest Beauty Co., a full range of color cosmetics and skin care.

48 WWD BEAUTY INC Care, which trades on the NYSE shift headquarters to foreign 18% from Canada, 12% from S.T. Dupont, Balmain, Repetto, under symbol EPC. David Hatfield, countries to reap tax benefits. Australia and 6% from the U.K. Agent Provocateur, Dunhill, Anna who oversaw personal care at That came on the heels of Sui, Shanghai Tang, Oscar de la Energizer, was named Edgewell’s 49 Allergan’s acquisition by Actavis Renta, Banana Republic, Brooks president and ceo. Sun care in March 2015, and then a name Brothers, Bebe, Rochas. posted sales of $402.8 million in RODAN + FIELDS change of the new entity back to 2015; North America accounted Allergan in June 2015. Allergan, SAN FRANCISCO for 71% of sales. In the October the maker of Botox and Juvederm 52 Inter Parfums attributed its through December period, sun 2015 BEAUTY SALES: prescription cosmetics, said its sales decline of 6.2% to negative care had a modest net sales $519.8 MILLION (EST.) Brilliant Distinctions program, JAFRA currency exchange. On a constant- decline but grew 4.4% organically, + 99.8% V ’14 (EST.) which enables customers to currency basis, sales rose 1.5% with strong performance earn money-saving points from COSMETICS for the year. In its European-based Main Brands: Redefine, Acute internationally, particularly in treatments and SkinMedica operations, Jimmy Choo was its Care, Reverse, Unblemish, INTERNATIONAL Oceania and emerging markets products purchased, has grown fastest-growing brand with sales in Asia. Both Banana Boat and to two million members. The WESTLAKE VILLAGE, CALIF. up 41% in local currency and 18% Hawaiian Tropic contributed to U.S. is the primary market for in dollars. Montblanc remained Rodan + Field’s surging 2015 BEAUTY SALES: the gains. SkinMedica and Prevage MD, its overall best-selling brand, with revenues were driven by growth $507 MILLION although products are also local currency growth of 6%. from new and existing products available in Canada, Hong Kong, €457 MILLION Boucheron Quatre and Rochas, and an increase in preferred Australia, New Zealand and the + 6.9% VS. ‘14 which was acquired in May 2015 customers. Rodan + Fields Middle East. from P&G, also contributed expanded sales in both the Main Brands: Royal Jelly Ritual, to growth. From U.S.-based antiaging and anti-acne categories Royal Jelly Original, Jafra Dynamics, 48 operations, Dunhill was its fastest thanks to the September 2014 Jafra Pro (skin care). Navigo, Eau growing and largest brand with introduction of Redefine Acute d’Arômes, JF9, Double Nature, KIKO SPA sales up 37% for the year. The Care, an item that targets Legend, Vesen, Blends, Jandé, launch of Extraordinary by Oscar BERGAMO, ITALY the appearance of lines and Diamonds, (fragrance). Royal 51 de la Renta also performed well. wrinkles, and ongoing sales of Almond, Tender Moments, Jafra 2015 BEAUTY SALES: The company had a sharp sales the Unblemish collection. The Spa (bath and body care.) Jafra $560.8 MILLION (EST.) NATURAL decline in South America and a brand’s PC Perks loyalty program Beauty, Royal Jelly Color, (makeup). €505.5 MILLION (EST.) fallof in sales of Anna Sui scents grew to more than 700,000 PRODUCTS 17% V. ’14 (EST.) in China due to the weakening + members, who purchase products economy. Western Europe, North Main Brand: Kiko Milano on a recurring basis at a discount GROUP Explosive growth in Indonesia America and Asia were the three with free shipping and exclusive and gains in Mexico and the U.S. IRVINE, CALIF. largest markets. Inter Parfums promotions. Diane Dietz, formerly drove a sales increase for direct also signed a licensing agreement Kiko, owned by Italian company of Safeway, Inc., was named ceo in 2015 BEAUTY SALES seller Jafra Cosmetics, a division with Coach, with products set to Percassi, continued its fast- January 2016. $508 MILLION (EST.) of the Vorwerk Group. Sales hit the market in fall 2016. fashion approach to beauty in + 2.2% V. ’14 (EST.) consultants grew 6%. Fragrance, 2015, opening 112 new stores to its top category, added several Main Brands: Arbonne: Arbonne bring its total to 765. Another new scents, along with a line Cosmetics (makeup), RE9 100 outlets are forecast for the of mixable fragrances dubbed Advanced, FC5, Calm, SeaSource first half of 2016. The brand is Blends. Jafra also launched the Detox Spa (skin and body care), present in 15 countries—Italy, 50 Royal Jelly Ritual skin care and Arbonne Intelligence (skin and 54 Germany, France, Portugal, Spain, Jafra Beauty color cosmetics hair care), Pure Mint (personal the U.K., Austria, Switzerland, ALLERGAN brands. Sold in 18 countries, care), Clear Future (skin care), DHC CORP. The Netherlands, Belgium, Jafra’s largest market is Mexico, IRVINE, CALIF. Pure Vibrance (hair care), Liquid Poland, Sweden, Turkey, Hong followed by the U.S. and Brazil. TOKYO Sunshine (sun care), Levlad: Kong and the U.S. There are 25 2014 BEAUTY SALES: Nature’s Gate, Nature’s Gate 2015 BEAUTY SALES: stores in the U.S., which the brand $516.8 MILLION (EST.) Advanced Care, Nature’s Gate $456.5 MILLION (EST.) entered in 2014. International 1.5% VS. ’14 (EST.) + Herbal Blend, Nature’s Gate Fruit ¥55 BILLION (EST.) expansion, product innovation Main Brands: SkinMedica, Blend (skin, hair and sun care). and e-commerce drove a 17 + 2.4% V. ’14 (EST.) Prevage MD (skin care). 53 percent increase in sales for 2015, Main Brands: DHC (skin, hair, according to the company. In Arbonne continued to INTER men’s, body and baby care; December, 2015, Jan Heere was fragrance, makeup), Olive Sube Allergan has been busy with demonstrate year-over-year named Kiko’s general manager. Sube series, Medicated Q series, deal-making and breaking. A growth in 2015, accounting for PARFUMS INC. Germanium series, Pore Care megamerger with Pfizer was about 95% of NPG’s total sales NEW YORK series, Salicylic Acne series (skin canceled suddenly by mutual with $485 million. The company care), Q10 Revitalizing Hair Care agreement due to negative tax launched Liquid Sunshine, a 2015 BEAUTY SALES: series (hair care). implications that would have mineral-based sun-care collection $468.4 MILLION resulted from a regulation issued in April, and skin-care line Clear - 6.2% V ’14 by the Department of Treasury Future in September. Levlad Main Brands: Lanvin, Montblanc, Sales at home grew 3.3% to ¥44 on April 4. The new rule makes brought in $23 million. By region, Jimmy Choo, Boucheron, Van Cleef billion for DHC in the fiscal year it harder for U.S. companies to 64% of sales came from the U.S., & Arpels, Karl Lagerfeld, Paul Smith, ended July 31, 2015. Domestic

September

1st 2nd 21st Unilever acquires Murad, Gina Boswell, head of Unilever’s Target acquires Sonia Kashuk’s yet another cult California personal-care business in eponymous makeup brand, signifying the skin-care brand. North America, announces retailer’s growing emphasis on beauty. she will run Unilever U.K. and Ireland. Tamara Rogers is tapped as her replacement.

WWD BEAUTY INC 49 cosmetics sales accounted for months to December 2015 on the its sales associate commitment, 92% of the company’s total back of strong sales to incoming causing a sales disruption early in beauty business for the period, Chinese tourists, while domestic the year. Overall, beauty slid from up from 87% a year earlier. The 56 sales were slow to rebound as 20% of company sales in 2014 60 company’s exports dropped 40% the economy in Japan remained to 18.8% in 2015. Total company over the same period, however, to NERIUM stagnant. Revenue from overseas sales fell from $2.6 billion in 2014 MARKWINS ¥3.8 billion. Skin care remained over the same period was up 33% to $2.28 billion. Tupperware, with DHC’s largest product category, INTERNATIONAL to ¥4.8 billion despite a slowdown 3.1 million associates, operates in INTERNATIONAL with major launches in 2015 ADDISON, TEX. in sales to Hong Kong and China, 100 countries, with Asia-Pacific CITY OF INDUSTRY, CALIF. including DHC Germanium Power traditionally Fancl’s strongest and North America its leading 2015 BEAUTY SALES: Serum and DHC Revitalizing overseas markets. Operating markets. 2015 BEAUTY SALES: Booster Serum proving $446 MILLION income increased by 39% to $403.8 MILLION (EST.) particularly popular. + 10.7% V. ’14 ¥4.87 billion year-over-year. In - 8.4% V. ’14 (EST.) terms of domestic distribution Main Brands: NeriumAD Main Brands: Bonne Bell, Lip channels, mail-order sales Formula, Optimera (skin and Smacker, Wet ‘n’ Wild, Physicians increased 5.2% to ¥17.95 billion body care). Formula, Black Radiance, over the nine-month 59 The Color Institute, The Color period, retail store revenues Workshop, Pop, Act. 55 Direct seller Nerium posted grew 21.6% to ¥15.2 billion and NIPPON a 10.7% uptick in sales in 2015 wholesale revenues climbed 35.6% to ¥3.2 billion. PZ CUSSONS driven by its core product MENARD Strategic decisions to discontinue category, skin care. Global MANCHESTER, U.K. COSMETIC CO. underperforming brands in certain expansion is high on the global markets caused a sales 2015 BEAUTY SALES: agenda of the family-owned LTD. decline in 2015. In January Markwins $451.5 MILLION (EST.) company, which currently acquired Bonne Bell and Lip £295.3 MILLION (EST.) operates in the U.S., Canada, NAGOYA, JAPAN Smackers from Aspire Brands, and Mexico and South Korea and - 3.9% V. ’14 (EST.) 2015 BEAUTY SALES: soon after forged a Lip Smacker deal will enter Japan, Hong Kong 58 with Disney’s Tsum Tsum collection Main Brands: St. Tropez (skin $418.4 MILLION (EST.) and Columbia later this year. reversing the brand’s recent retail and body care), The Sanctuary ¥50.41 BILLION (EST.) Last year Nerium announced TUPPERWARE sales declines. Wet ‘n’ Wild grew Spa, Luksja (bath, body care and a partnership with Signum + 1% V. ’14 23%, helped by a new advertising skin care), Charles Worthington, Biosciences to exclusively license BRANDS CORP. Main Brands: Saranari, Lisciare, campaign, the signing of three brand Fudge Professional, Fudge Urban, its cosmetics technology and all Fairlucent, Colax, Beauness, ambassadors and the introduction Joy (hair care). Original Source, future nutritional supplements. ORLANDO, FLA. Herb Mask (skin care), Kasaneka of e-commerce. Black Radiance Imperial Leather (bath and body It has added Signum’s Sig- 2015 BEAUTY SALES: (body care), Embellir, Tsukika also posted double-digit growth and care). Venus (hair and skin care, 1273 molecule, an age-fighting $428.8 MILLION (EST.) (skin care, makeup). Divum (skin remained the top U.S. mass-market toiletries). Stella (skin care). ingredient, to its Optimera - 17.7% VS. ’14 (EST.) care, makeup, in China), Jupier ethnic cosmetics brand. Markwins Formula antiaging skin care. In (makeup), Authent (skin care, now trades in 45 countries, with the September, Nerium made all Main Brands: Avroy Shlain, fragrance), L’Eau de Ryokuei, U.S., Canada and U.K, the largest, PZ Cussons was negatively its U.S. Web sites available in BeautiControl, Fuller Cosmetics, L’Eau de Taoyaka (fragrance). and China, Russia and Thailand the impacted by macroeconomic Spanish to reach the Hispanic NaturCare, Nutrimetics, Nuvo fastest-growing. pressures in Nigeria, which market. Cosmeticos (makeup, accounted for 9% of its beauty skin care, fragrance). Nippon Menard Cosmetic Co. sales in 2015. Revenues for The attributed its 2015 sales gain to Sanctuary Spa declined due to increased exposure over mobile, its repositioning to focus on retail Tupperware’s South African as Asian beauty consumers products, while Imperial Leather beauty brand Avroy Shlain was embrace m-commerce with 61 sales in the U.K. shower segment 57 a highlight with sales up 16% a significantly larger spend were down due to competitive for the year, driven by fragrance than seen from consumers in pressure. St Tropez grew, driven and skin care, while logging its VOGUE FANCL CORP. the West. The Divum brand’s by new product development and 22nd consecutive growth quarter. YOKOHAMA, JAPAN continued penetration into INTERNATIONAL growth in the U.S. and Europe. Nutrimetics Australia & New the Chinese market was also a Original Source sales climbed 2015 BEAUTY SALES: Zealand and Nuvo in Uruguay CLEARWATER, FLA. positive note for the company. In 15% thanks to the launch of OS $439.9 MILLION [EST.] also posted positive results. 2015, Nippon Menard celebrated 2015 BEAUTY SALES Skin Quench. The U.K. accounted However Fuller Cosmetics in ¥53.09 BILLION [EST.] 30 years in the Taiwanese for 59% of sales, Africa 13% and Mexico, a fragrance market $400 MILLION (EST.) + 8.8% V. ’14 market, and opened a new Australia 8%. leader, decreased. BeautiControl, + 25% V. ’14 (EST.) Main Brands: Fancl, Attenir Menard salon in Ho Chi Minh City, sold in the U.S., the Philippines Main Brands: Ogx (hair, bath (skin care, makeup), Boscia (skin Vietnam. It also launched a new and Canada, changed its and body care), FX, Proganix (hair care). Web site for the Saranari brand. compensation model to increase care).

Domestic sales for Fancl rose Sales growth at Ogx, formerly

14% to ¥36.38 billion for the nine GIGI HADID PHOTOGRAPH BY ROBERT MITRA Organix, came from increased

October

28th 30th 6th Gigi Hadid fires back on Instagram with a message to body- Pat McGrath enters color L’Oréal Paris appoints shamers who commented on a post of the model walking cosmetics with her first blogger Kristina Bazan of Tommy Hilfiger’s New York Fashion Week show: “At least branded product, Gold 001, Kayture as a new brand be open if not part of the change, because it’s undeniably announced during Paris ambassador. Her contract is happening.” Fashion Week. It sells out rumored to be in the seven online within minutes. figures.

50 WWD BEAUTY INC distribution in the food, drug to new accounts, and it also Sales drivers for privately-owned and Bain de Soleil slid 2.3% to and mass channels globally. grew in all but one of its top-10 Jala Group in 2015 included the $261.7 million and accounted for International sales, which account markets. Institut Esthederm ongoing growth of Chando, which 22.5% of category sales, down for around a quarter of total increased its revenues 11.2% to represents the majority of the 1.2%. Coppertone Sport, still the 67 company revenue, grew at twice €35 million, while Etat Pur sales firm’s sales. Chando continued U.S. market’s top-selling sun-care the rate of the U.S. as the brand fell approximately 43% to €0.7 to gain market share, becoming item, saw retail sales fall 5.5% to CATTERTON entered Germany and France and million as the brand repositioned the market leader for skin care in $110.7 million, according to IRI. saw strong growth from the U.K. to a digital-only model. China, according to the company. Coppertone is sold in 20 markets, PARTNERS and Australia. In the U.S., Ogx hair Jala continued to reposition including the U.K., Mexico and GREENWICH, CONN. care increased its market share Maysu as a more upscale ofering China, with the U.S. its largest. to roughly 6%; the brand is now to compete with international 2015 BEAUTY SALES the number-five shampoo and prestige brands. Maysu was the $366 MILLION (EST.) conditioner brand, according ofcial cosmetics partner for the + 144% V. ’14 (EST.) to Nielsen. Sales in 2015 were 63 China Pavilion at Expo Milano in Main Brands: StriVectin, Nia24 spurred by launches, including the Italy and collaborated with French (skin care), CoverFX (makeup), Vitamin E and Vitamin B5 lines, as HOYU CO. pastry chef Pierre Hermé. Aglaia 66 Dr. Miracle’s (hair care), Steiner well as expanded ranges. changed its name to Botanic Leisure: Elemis, La Thérapie, NAGOYA, JAPAN Wisdom. Jala Group registered ABLE C&C Bliss, Laboratoire Remède, estimated retail sales of CNY 6.75 2015 BEAUTY SALES: SEOUL Mandara Spa (skin care). billion in 2015. $386 MILLION [EST.] The December acquisition of spa 2015 BEAUTY SALES: ¥46.5 BILLION [EST.] and skin-care business Steiner $367.1 MILLION 62 + 1.7% V. ’14 (EST.) Leisure, which had reported KRW 407.9 BILLION sales of $265.4 million in 2014, Main Brands: Bigen, Cielo, - 6.9% V. ’14 [EST.] significantly added to Catterton’s Beautylabo, Beauteen, Naturain NAOS GROUP beauty holdings. On a like-for-like (hair color), Men’s Bigen, Rexy, 65 Main Brands: Missha, A’Pieu, basis, its beauty portfolio, including AIX-EN-PROVENCE, FRANCE Promaster (men’s hair color), Mika, Swiss Pure (skin, bath and the Steiner Leisure brands, saw Samy (hair care). body care; makeup). 2015 BEAUTY SALES: BAYER sales growth of 4% in 2015. $390.5 MILLION (EST.) CONSUMER Steiner Leisure president Sean Harrington moved to the U.S. in €352 MILLION (EST.) Hoyu’s modest growth in 2015 Growing competition from order to oversee the launch of the + 19.9% V. ’14 (EST.) was partly the result of its Bigen HEALTH brands like Innisfree and The Face Shop resulted in an accelerating company’s Elemis spa and skin- Main Brands: Laboratoire range of hair dyes expanding LEVERKUSEN, GERMANY decline in sales for Able C&C’s care brand Stateside. At StriVectin, Bioderma: ABC Derm, Atoderm, into new Asian markets, such as 2015 BEAUTY SALES Missha brand, one of the first Joan Malloy became chief Cicabio, Créaline/Sensibio, Sri Lanka, though the domestic $372.43 MILLION (EST.) entrants in the afordable executive ofcer. The launches of Hydrabio, Matriciane, Matricium, market is still by far Hoyu’s K-Beauty market around a decade CoverFX’s Contour Kit and Custom Sébium, White Objective, Secure largest. The youth-focused €335.7 MILLION (EST.) ago. In January 2015, Missha Cover Drops also helped drive (skin care). Nodé (hair care). Beauteen line of hair color, which - 2% V ’14 (EST.) closed its outlets in Hong Kong sales. In January 2016, Catterton Photoderm (sun care). Institut is formulated for dying over black Main Brands: Coppertone, Bain and Macau. The brand has begun announced it would be partnering Esthederm: Defepil, Institutionnel, hair, re-launched in February de Soleil (sun care), Complex 15 focusing on markets where there with LVMH Moët Hennessy Louis Molecular Care, Osmo Cellular, 2015, and the company claims to Hand & Body Lotion (skin and is less competition for Korean Vuitton and Groupe Arnault to Time Cellular Essentiel, Time be seeing returns for R&D yield body care), Dr. Scholl’s For Her brands, opening points of sale create L Catterton, a consumer- Cyclo System, Time Lift & Repair, via its Hoyu Science Foundation, (foot care). in Germany, Slovakia, Turkey, focused private-equity firm. Time White System (skin care). which debuted in 2014. Kazakhstan and Poland over the Morpho Cellular (body care), past year. Despite the decline in Photo Cellular (sun care). ETAT During 2015, Bayer completed sales, the company reported a PUR: Actifs Pur, Cosmétiques the integration of the consumer 507% increase in net income to Biomimétiques (skin, sun and brands it acquired from Merck, KRW15.59 billion and a 162% rise body care). and announced the reorganization in operating income to KRW17.7 68 64 of the company into three core billion thanks to reduced selling, divisions, including the Consumer general and administrative COSNOVA Core brand Bioderma was Health Division, under which JALA GROUP CO. expenses. SULZBACH, GERMANY the main growth driver for beauty brands are now grouped. Naos Group in 2015, with a SHANGHAI U.S. retail sales of Coppertone 2015 BEAUTY SALES: 21% increase in revenues to 2015 BEAUTY SALES: $351.2 MILLION €316 million. Bioderma opened $385.7 MILLION (EST.) €316.6 MILLION new subsidiaries in Brazil and CNY 2.4 BILLION (EST.) + 13.4% V. ’14 India, which it sees as having high growth potential. Its three + 12.7% V. ’14 (EST.) Main Brands: Essence (makeup; skin, nail and foot care; fragrance), biggest markets were France, Main Brands: Chando, Maysu Catrice (makeup). China and Turkey, collectively (skin care, makeup). Botanic accounting for nearly 50% Wisdom, Insea (skin care). of sales. The brand’s sales in China grew 116% thanks

November

9th 25th 11th 17th 17th After struggling to establish Estée Lauder stakes its claim After a 24-year-run, founding In response to the company’s Sephora pulls the curtain back the fledgling line, L’Oréal USA in the Asian skin-care market editor of Allure Linda Wells accelerating luxury business, on its new interactive store unloads Em Michelle Phan to with an investment in South is out. Michelle Lee, former Carol Hamilton is promoted concept, which represents the Ipsy, ending its partnership Korean line Dr. Jart+. editor in chief and marketing to group president of L’Oréal future of the retailer’s North with creator Michelle Phan. ofcer at Nylon Media, is Luxe USA. American brick-and-mortar named as her replacement. plan.

WWD BEAUTY INC 51 International markets comprised although the vast majority of its Lavender, Birch, Sea Buckthorn, PHARMACEUTICAL CO.: Sana roughly 55% of Cosnova’s sales revenues stem from China. Men Active (body care), Calendula, (skin and body care, makeup), in 2015, up from approximately White Mallow (baby care), Millet, Sana Nameraka Honpo (skin 50% in 2014. Sales continued Wheat, Oat (hair care). 73 care). Sana Excel (makeup). Nov to grow in Germany, where the (skin care, makeup). Act-Nov, company recorded its highest-ever PERRIGO Cellnew (skin care). market share at 36.3%, according Growing consumer demand DUBLIN to Nielsen data, a 6.5 percentage 70 for organic and natural beauty point increase in value terms. Sales continued to drive sales for 2015 BEAUTY SALES: While 90% of Noevir’s beauty drivers across all markets included HYPERMARCAS Switzerland-based Weleda in 2015, $297.9 MILLION sales come from within the gel nail polishes from Essence. with Germany and France being Japanese market, the company SÃO PAULO €268.5 MILLION (EST.) The brand also launched its own the main contributors to growth has been working to increase its + 3.8% VS. ’14 (EST.) YouTube channel, Essence TV, last 2015 BEAUTY SALES: in absolute terms. The firm saw international business, particularly July and expanded its presence $323 MILLION (EST.) its strongest growth in Russia Main Brands: Angstrom, in the U.S. and key Asian markets. Bergasol (sun care), Aco/ in the U.S. in January 2016 with a R1.06 BILLION (EST.) and South America. Launches For 2015, the company attributed launch at Target. Essence is now were a major driver, particularly Cosmica, Bodysol, Eau Précieuse, its growth to the success of core + 8.4% V. ’14 (EST). available in more than 80 countries Almond body care for sensitive Sant’Angelica, Biodermal, Addax, self-select cosmetics brands, and Catrice in almost 60, after Main Brands: Monange (hair skin, natural fragrances in the Dermalex (skin care), Restiva bolstered by product launches and entering markets including Turkey, and skin care, deodorant). Leite Pomegranate, Sea Buckthorn (hair care), Farmatint (hair color), brand restructuring. It launched Bolivia, Peru and Ecuador last year. de Colônia (skin care). Bozzono and Wild Rose franchises, Innoxa, T. LeClerc (makeup), marketing campaigns to recruit (shave preparations, hair styling). Evening Primrose Age Vitalizing Deotak (deodorant), Depitak new consumers to the Sana Biocolor (hair color, care and Concentrate and Arnica Sports (depilatories). Namera Kahonpo skin-care line styling). Éh!, Aqua Marine (hair Body Wash. The company said the and Sana Excel makeup. While care). Risqué (nail color). Avanço appreciation in value of the Swiss announcing its consolidated results (deodorant). Cenoura & Bronze franc weighed on its operating Perrigo finalized the purchase for 2015, Noevir cited the continued 69 (sun care). Paixão (skin care). results, as did the increasing price of Omega-Pharma in April 2015 trend for sluggish consumption of organic raw materials. Natural for €3.8 billion, bringing into its among Japanese consumers and JIANGSU organic cosmetics accounted fold Omega’s portfolio of skin, hair, the increasingly saturated and In November Hypermarcas for 70% of Weleda’s 2015 sales, makeup and bodycare brands, competitive domestic market as LONGRICH announced it was exiting the which rose 7% overall to €389 which are now grouped under key challenges moving forward. consumer beauty category and million year-over-year. the new Branded Consumer GROUP CO. selling its brands to Coty for R3.8 Healthcare division. The firm CHANGSHU, CHINA billion, as the company refocuses attributed its beauty growth to the its eforts on pharmacy. The deal complete relaunch and upgrade 2015 BEAUTY SALES closed in February 2016. With of Aco/Cosmica in the Nordics $334.3 MILLION (EST.) a shift in consumer spending and the strong development of 75 CNY 2.08 BILLION (EST.) in Brazil toward value brands, 72 Biodermal in the Netherlands. The + 3.4% (EST.) Hypermarcas saw gains in hair Omega merger helped strengthen PDC BRANDS care, men’s care and nail polish. BURT’S BEES Perrigo’s position in consumer Main Brands: Longliqi, Longrich, In addition to traditional TV and healthcare across Europe, and laid STAMFORD, CONN. YaFei, Yuzhibao, Evergreen, Fruity DURHAM, N.C. radio ads, the company began the groundwork for future bolt-on 2015 BEAUTY SALES: (skin, body and hair care, men’s testing more digital spots. Key 2015 BEAUTY SALES: acquisitions to further growth. $284.9 MILLION (EST.) grooming, makeup). launches included Biocolor SOS $300 MILLION (EST.) 30.2% VS. ’14 (EST.) Raiz, a fast-acting product for + 11.1% VS. ’14 (EST.) hair roots, and hair care brand + Main Brands: Bodycology, Cantu, Jiangsu Longrich Group Co.’s Éh!, repositioned with new Main Brands: Burt’s Bees Body Fantasies, Dr Teal’s, BOD business in 2015 was driven by formulations and packaging. (skin, lip, hair, body, men’s and Man, Calgon, The Healing Garden, ongoing growth in demand for baby care), Güd by Burt’s Bees 74 Designer Imposters, Wind Song, domestic beauty brands in China. (fragrance, skin and hair care). Prince Matchabelli. Local brands have grown their share of the Chinese market NOEVIR from 14% to 20% over the past Burt’s Bees cofounder Burt HOLDINGS CO. Fueled by a combination of five years, according to Daxue 71 Shavitz passed away in July at strategic acquisitions and organic TOKYO Consulting. According to data age 80, but the natural brand growth, PDC Brands significantly from Euromonitor, Longrich grew that bears his name continued 2015 BEAUTY SALES: increased revenues in 2015. In its retail skin care sales by 3.8% WELEDA to blossom with sales up 11.1%. $290.3 MILLION [EST.] July it purchased multicultural to $336 million in 2015. The ARLESHEIM, SWITZERLAND The lip segment drove growth and hair brand Cantu and the specialty company’s men’s grooming retail ¥34.98 BILLION [EST.] 2015 BEAUTY SALES: the face segment also increased bath brand Bodycology. Along sales grew 18% to $4.6 million. + 8.2% V. ’14 (EST.) $305.1 MILLION, due to the launches of Renewal, with Calgon, PDC now possesses Hair-care revenues grew 3% to an antiaging line, Cleansing Oil Main Brands: NOEVIR CO.: the two bestselling specialty €275 MILLION $150.5 million, driven mainly by and Intense Hydration Nourishing Speciale, 505, 105, 99 Plus, NHS bath brands in the U.S. mass 7.8% V. ’14 shampoos. Hand-cream sales + Facial Water. The brand, now (skin care). Tokara Sea Mineral market. Meanwhile, Dr. Teal’s bath grew 129% to $7.1 million. Jiangsu Main Brands: Evening Primrose, in 50 countries, said the U.S., Toiletries (body and hair care). and body line, Cantu and Body Longrich sells its beauty products Almond, Wild Rose, Pomegranate, Canada and the U.K. are its largest Raysela (sun care). Noevir Fantasies fragrances all expanded in approximately 50 countries, Iris (skin and body care), Citrus, markets. Actrice (makeup). TOKIWA distribution. International sales

December

20th 30th 1st In the wake of the announcement of Kylie Jenner breaks the China and the U.S. agree Lynne Greene’s retirement in 2016, Internet with the launch of to talk shop. A dialogue on John Demsey is named executive her ultrahyped Lip Kit, $29, beauty and personal-care group president at the Estée Lauder which sells out within an rules and regulations will take Cos. Inc. Jane Hertzmark Hudis is hour of going live. place in Beijing sometime named group president. during the first half of 2016.

52 WWD BEAUTY INC BY THE NUMBERS Beauty Company Spending on Research manufacturer of certified organic and Development and natural hair- and skin-care products, and Kesh King, an Innovation is the engine of the beauty industry. 76 ayurvedic hair care business 79 L’Oréal remained the top spender in research and sold in 540,000 doors with sales development among the pure-play beauty companies BURBERRY of around 3 billion rupees. The HERMÈS that report this expenditure. In 2015 it allocated 3.1% LONDON, U.K. company also expanded its ofering in emerging categories like INTERNATIONAL of its revenues, or €794.1 million, to come up with 2015 BEAUTY SALES: deodorants, face washes and hair PARIS new products and advances. A distant second was $282.9 MILLION oils in India. In the nine months Beiersdorf at €183 Million***, followed by the Estée 2015 BEAUTY SALES: £185M MILLION (EST.) to December 2015, Emami’s Lauder Cos, with $178 million or 1.7% of revenues. $267.8 MILLION + 6.9% V. ’14 (EST.) total sales, including healthcare products, grew 17% to19.5 billion €241.4 MILLION Main Brands: Burberry rupees. Domestic business + 4.6% V. ‘14 (fragrance, makeup). accounted for 83% of sales. Main Brands: Hermès Parfums: Emami’s products are available in R&D as Terre d’Hermès, 24 Faubourg, more than 60 countries. Company R&D Spent percent of Digital sales initiatives and Voyage d’Hermès, Calèche, revenue expanding distribution channels Eau des Merveilles, Collection boosted Burberry’s 2015 beauty Hermessence, Collection $881 Million 3.1% sales. In Japan, a key market, the Parfums-Jardins, Collection L’Oréal firm signed a distribution license Les Classiques, Kelly Calèche, €794.1 Million with Shiseido, which introduced 78 Collection Les Colognes Hermès, the My Burberry fragrance there Jour d’Hermès (fragrance), Le Beiersdorf $203 Million 2.7% and opened the first two Burberry Bain Hermès (toiletries), Le €183 Million*** Beauty Box counters in Japanese BRYNWOOD Parfum de la Maison (home department stores. Burberry also PARTNERS fragrances). Estée Lauder Cos. $178.1 Million* 1.7% expanded its distribution with Sephora internationally, launching GREENWICH, CONN. Shiseido $118.1 Million 1.8% on sephora.com and rolling out to Hermès’ key drivers in 2015 2015 BEAUTY SALES: ¥14.23 Billion 34 of the LVMH-owned retailer’s included the ongoing success of $278.1 MILLION (EST.) stores, including the Champs the Terre d’Hermès franchise, 9.3% V. ’14 (EST.) Elysées flagship in Paris. Beauty + which remained France’s Natura $63.6 Million 2.6% sales in the six months ended Sept. Main Brands: High Ridge Brands second-best-selling men’s scent, Cosméticos R$208.8 Million 30, 2015 rose 4% to £82 million. Company: Alberto VO5, Thicker as well as a new addition to the The company expects beauty Fuller Hair, Zero Frizz (hair care), Jardins collection, Le Jardin Avon Products $61.9 Million 1% activity to register double-digit Rave, Salon Grafix, LA Looks de Monsieur Li. At constant underlying sales growth in the (hairstyling), Zest, Coast (body currency rates, beauty sales rose Coty Inc. $48.3 Million* 1.1% second half ended March 31, 2016. care), White Rain (hair care, body 3.3%. In September, Hermès care). opened its first stand-alone store just for its fragrance lines Revlon $31.2 Million 1.6% in New York’s Brookfield Place Private equity firm Brynwood complex. Fragrance accounted L’Occitane Group $14.4 Million 1.1% brought hair-care brand Salon for 5% of total sales for Hermès €13 Million* 77 Grafix and its products, including International, which grew 17.5% to High Beams, Play It Big and €4.84 billion. Oriflame Holding $13.2 Million 0.9% Healthy Hair Nutrition, into EMAMI LTD. €11.9 Million** its High Ridge Brands beauty KOLKATA, INDIA portfolio in 2015 when it acquired Noevir Holdings $9.1 Million 2.2% 2015 BEAUTY SALES: Continental Fragrances Inc. from Co. ¥1.102 Billion* $278.3 MILLION (EST.) SG Holdings. Last year Brynwood also combined portfolio company 80 17.84 BILLION RUPEES (EST.) Newhall Laboratories, owner of Able C&C $2.58 Million 0.7% + 20.5% VS. 2014 (EST.) LA Looks and Zero Frizz, with High NUXE GROUPE KRW2.87 Billion Main Brands: Boroplus, Ridge, and sold of noncore assets PARIS Navratna,Vasocare, Emami Golden to The Village Co., divesting Soft Beauty Talc (skin care), Fair & & Dri, La Bella, Dep and Pure & 2015 BEAUTY SALES: *Fiscal Year ended March 2015 for L’Occitane and Shiseido; June 2015 for Handsome (men’s skin care), Naturals. Zest’s new shower gels $266 MILLION (EST.) Coty and Estée Lauder, and September 2015 for Noevir. All others ended Emami 7 Oils in One, Kesh King and body scrubs and new Alberto €239.8 MILLION (EST.) December 2015. **Oriflame figures are Fiscal Year 2014 ***Beiersdorf % (hair care), He (deodorants). VO5 shampoos and conditioners + 9.4% V. ’14 (EST.) was calculated against total company sales, including bandages and the Tesa drove growth. The U.S. accounts adhesives business. for 94% of sales, Canada, 4%, the Main Brands: Nuxe, Bio-Beauté Indian consumer-goods company Middle East and North Africa, 1%, by Nuxe, Resultime (skin and body Emami Ltd. made two acquisitions and 1% from other international care, fragrance). in the beauty segment last year, markets.

JENATKIN PHOTOGRAPH BY CHELSEA LAUREN buying Fravin Pty Ltd Australia, a

7th 18th 24th Kimberly-Clark enters the Gillette slaps Dollar Shave Club with Jen Atkin, hairstylist to the skin-care category with the a federal lawsuit, citing patent and Kardashians, unveils her new soft launch of Kleenex facial- intellectual property infringements. hair-care line, Ouai, launching cleansing products. at retail in 2016.

WWD BEAUTY INC 53 represented approximately 17% Li & Fung focused on bolstering of revenues with representation business through innovation, in 40 markets across Asia, Latin forging Korean partnerships and 85 America, Mexico, the Middle 82 the development of onshore 87 East, Africa and Canada. Aided sourcing in Europe and the by its partnership with private- ALÈS GROUPE U.S. All its beauty businesses, CARTIER LION CORP. equity firm Yellow Wood Partners, including those acquired as part PARIS TOKYO PDC said it is actively looking PARIS of Lornamead in 2013, have 2015 BEAUTY SALES: 2015 BEAUTY SALES: for additional complementary 2015 BEAUTY SALES: been reorganized into the LF $228.5 MILLION $225.3 MILLION (EST.) acquisitions. $251 MILLION Beauty division. In March, LF Beauty entered an agreement €206 MILLION (EST.) ¥27.15 BILLION (EST.) €226.33 MILLION (EST.) with Cosmecca Korea Co. Ltd. + 3% V. ’14 (EST.) + 2% V. ’14 (EST.) 0.6% V. ’14 (EST.) Exports accounted for 51% - to collaborate on research and Main Brands: La Panthère de Main Brands: Kirei Kirei (hand of Nuxe’s wholesale revenues Main Brands: Phyto, development and manufacturing Cartier, Baiser Volé, Déclaration, in 2015, when the company PhytoSpecific, Secret of beauty and skin care for soap), Ban (deodorant), Pro Eau de Cartier, Pasha de Cartier, was present in 68 countries. Professionnel, Kydra, Ducastel brands worldwide. In September, Tec (men’s hair and body care), Must de Cartier, Santos de International sales grew 10.4%, (hair care), Lierac (skin care), it opened a new R&D facility Bathtology (body care), Soft in 1, Cartier, Roadster, Les Heures du driven by markets in the Middle Caron (fragrance). in Thailand, its second in the Shokubutsu-Monogatari (shampoo Parfum, Les Heures Voyageuses East and Europe. Outside France, country. Beauty sales are evenly (fragrance). and body soap). which saw sales growth of 8.2%, divided across the U.S., Asia and Nuxe Groupe’s biggest markets Alès Groupe’s total sales rose Europe. remained Spain, Belgium 7.2% to €244.1 million in 2015, Compagnie Financière Lion Corp.’s domestic beauty- and Italy. Bio-Beauté by Nuxe boosted by the acquisitions of Richemont-owned Cartier saw its care sales declined 2.9% last year launched in Spain in 2015, while beauty supply operations Boy fragrance sales grow an estimated to ¥20.47 billion. The company Resultime entered Italy. Nuxe Difusion and Distri-Coif in 3% worldwide last year, with ranks third in French pharmacies, France during the first half. On said its Kirei Kirei brand saw the strongest increases coming according to IMS Health data. a like-for-like basis, sales fell sales increases, but revenues 83 from the travel-retail channel. L’Huile Prodigieuse remained the 0.6%. The hair-care division grew for Ban deodorants declined. La Panthère, launched in 2014, number-one body care product 26% to €113.7 million, with an Internationally, Shokubutsu- EMBELLEZE gained share in all markets and in the channel. Nuxe Sun grew increase of 42% in international recruited new consumers. In men’s Monogatari body wash performed 54% in French pharmacies, partly markets and 11% in France, GROUP fragrances, Déclaration performed well in Thailand and Kirei Kirei saw driven by the launch of Huile reflecting the repositioning RIO DE JANEIRO strongly in Europe and Pasha strong sales in South Korea. Lion, Lactée Capillaire, a protective oil of the Phyto brand and the Edition Noire did well in the U.S. and whose business includes beauty, for the hair. launch of hair-loss treatment 2015 BEAUTY SALES: the Middle East. France, Italy and detergent, soap, toothpaste and Phytologist 15 under Laboratoires $233.1 MILLION (EST) the U.S. remained Cartier’s three Phytosolba. On a like-for-like pharmaceuticals, registered total R$765 MILLION (EST.) leading markets for fragrance. basis, sales for the division grew net revenues of ¥378.66 billion, + 12% V. ’14 (EST.) 6%. Skin-care sales fell 5.5% to up 3% year-on-year. Overseas €121.2 million, due to Lierac’s Main Brands: Novex, Vitay, net sales were ¥102 billion, an 81 weakness in France. Fragrance Revitay, Amacihair, Hairlife, increase of 18.4%, partly due to Lisahair (Hair care, treatment and sales grew 2.8% to €9.2 million favorable currency efects. COMBE thanks to strong international transformation), Natucor, Maxton (hair color). 86 WHITE PLAINS, N.Y. business. French revenues grew 14% to €104.8 million, while in 2015 BEAUTY SALES: international markets, they rose MILBON CO. LTD. $258.2 MILLION 2.6% to €139.3 million. Sales to The domestic market, where OSAKA, JAPAN sales grew 12%, accounted + 1% V ’14(EST.) distributors fell 1.5%, largely due for 90% of revenues for the 2015 BEAUTY SALES: 88 to declinesin Russia and Ukraine, Main Brands: Just for Men, but the company’s international Brazilian hair-care manufacturer $227.3 MILLION Grecian, Restoria (hair color), COLLISTAR subsidiaries registered growth of Embelleze. International sales ¥27.38 BILLION (EST.) Aqua Velva, Williams, Lectric 3.6% to €113.3 million. grew 25%, with key brand Novex + 8.5% V. ’14 (EST.) MILAN Shave (men’s grooming), entering new markets, ending Brylcreem (men’s hair styling, in the year in 37 countries. Novex Main Brands: Plarmia, Elujuda, 2015 BEAUTY SALES: the U.S.). represented 31% of Embelleze’s Liscio, Ordeve, Villa Lodola, Aujua, $221.9 MILLION sales in Brazil, where it has an Jemile Fran (hair care, color and €200 MILLION (EST.) styling). 8.6% market share, according + 1% VS. 2014 (EST.) Just for Men’s 2015 growth came to Nielsen, and nearly 80% 83 Main Brands: Collistar (makeup; from its core brands, Just for of its international business. The 2014 launch of hair-care skin, hair, body and sun care; Men and Just for Men AutoStop. Maxton hair color accounts for LI & FUNG products featuring Milbon’s men’s skin care and fragrance; According to IRI, Combe’s brands 29% of domestic sales. In 2015, proprietary CMADK reparative aromatherapy). combined posted U.S. retail sales HONG KONG Embelleze signed agreements to protein continued to drive sales of $186.9 million, up 1.4%, and build new factories in Venezuela 2015 BEAUTY SALES: for the professional hair-care claimed 90.2% of the men’s hair and the Dominican Republic. A $233.1 MILLION (EST.) manufacturer in 2015. Antiaging Collistar continued to focus on color category in the U.S. mass factory in Angola is planned for 2% VS. ’14 (EST.) lines, including launches under international markets in 2015, market. The Just for Men brand - 2017. the Plarmia and Aujua brands and especially Russia, Spain, Germany grew 2% to $131.8 million and Main Brands: LF BEAUTY: the new Ordeve Crystal line to and Poland. Italy accounted for AutoStop rose 1.7% to $33.5 Finesse, Aqua Net, Harmony, cover gray hair, also contributed to 59% of sales, up 1% from a year million, while Just for Men Touch Vosene, Brisk, Bristows (hair growth. Milbon saw 34% growth earlier. Key drivers were new of Gray slid 1.4% to $15.9 million. care), Yardley of London (in in international markets last year, launches in the Special Perfect A lawsuit was filed against the Germany, Austria and the including a 39% increase in China, Body Line and the relaunch of company in February 2016 Americas), CD (bath and body), 17.6% growth in South Korea and a Magnifica Plus face care. The claiming Just for Men hair dye can Lypsyl (lip care), Witch, Handsan 14.1% rise in the U.S. Japan, where firm continued its “Ti Amo Italia” cause allergic reactions. Combe's (skin care), Triple Dry (deodorant), sales grew 5.6%, accounted for (“I love you, Italy”) project with products are distributed in North Harmony Indulgence (hair and 87.2% of sales, while international Italy-themed cosmetics, including America, South America, Europe, body care), Wrights, Cidal, Simple sales represented 12.8%. Milbon a limited-edition makeup collection Asia and Oceania; the U.S. is its (soap, in the U.K., Ireland and aims to grow its export business with design brand Kartell and a largest market. Channel Islands), Collection to 18.6% of total sales by range of gift sets with Piquadro Cosmetics (makeup). yearend 2019.

54 WWD BEAUTY INC BY THE NUMBERS Board Composition in 2015

When it comes to female leadership, Avon is tops with 66.7% of its 2015 Board of Director seats occupied by women. Meanwhile, Unilever grew its representation from the fragrance market is leather goods. Collistar has 33.3% in 2014 to 50% last year expanding from four out of 12 to six out of 12. Estée Lauder, remained Italy’s top-selling brand stagnating, for German fragrance Henkel and L’Oréal all had board composition impressively in the 40th percentile. After that in terms of volume and value for manufacturer Mäurer & Wirtz in 13 consecutive years, according to 2015. International revenues grew the numbers slid as the bulk of the boards possessed 37.5% or less. Ten boards had zero NPD data. 14.8% to €65 million, accounting and 16 had only one woman. for 35% of business, up from 31% a year earlier. The company Women on Board Total Board Composition attributed this to growth in 0 5 10 15 20 Europe, notably Belgium, Eastern 60% to 70% Europe and the Netherlands. The Avon Products 50% to 59.9% 89 company’s main focus in terms Unilever of product launches was men’s 40% to 49.9% The Estée Lauder Cos. fragrance and skin care. DR WOLFF- Alès Groupe GRUPPE Henkel BIELEFELD, GERMANY L’Oréal 30% to 39.9% PZ Cussons 2015 BEAUTY SALES: $207.5 MILLION (EST.) 91 Hermès International €187 MILLION (EST.) Revlon + 9.4% V. ’14 (EST.) CAUDALÍE Procter & Gamble Co. Main Brands: Dr. Kurt Wolf: PARIS Johnson & Johnson Alpecin, Plantur 39, Plantur 21 2015 BEAUTY SALES: Tupperware Brands Corp. (hair care). Alcina (hair, skin and $205.2 MILLION Burberry sun care; makeup). Dr. August €185 MILLION (EST.) Oriflame Holding Wolf: Linola (skin care). 20% to 29.9% + 19.4% V. ’14 (EST.) Noevir Holdings Main Brands: Resveratrol RB Alpecin was once again Dr. Lift, Vinoperfect, Premier Cru, Clorox Co. Wolf-Gruppe’s primary sales Vinosource, Eau de Beauté, driver in 2015 as it continued to Premières Vendanges, Teint Divin, Colgate-Palmolive expand internationally, according Polyphénol C15 (skin care), Divine Perrigo to the company. Its sales Body (body care), Eaux Fraîches, Walgreens Boots Alliance increased 11% to €76.3 million, Parfum Divin (fragrance). including a 3% rise domestically Beiersdorf and 36% growth abroad. Plantur’s Godrej Consumer Products revenues increased 12% to Caudalíe saw strong sales LVMH Moët Hennessy Louis Vuitton €45.5 million; Alcina’s sales were growth at home and abroad in Bayer AG stable at €40.7 million. Sales 2015 driven by the introduction 10% to 19.9% for dermatological skin-care of skin care line Resveratrol Lift L Brands brand Linola climbed 16% to and the opening of new boutiques. Shiseido o. €43.5 million. Total revenues for International revenues climbed Shanghai Jahwa Dr Wolf-Gruppe, which include 20% to €105 million, driven by Edgewell Personal Care beauty, oral and intimate-care growth on all continents. In the products, increased 9% to €265.1 Americas, the family-owned firm’s Elizabeth Arden million. International sales, which largest export zone, revenues Emami Ltd. accounted for 21% of business, grew 38% to €25 million, and Li & Fung increased 24% to €55.3 million. Italy and Germany remained its second and third-largest export Natura Cosméticos markets, with sales of €12 million Nu Skin Enterprises each, up 20% year-over-year. Pola Orbis Holdings Sales in France increased 17% to Marico Ltd. €80 million. Caudalíe opened six 0% to 9.9% 89 boutiques with spas last year, in Hypermarcas France, the U.S., Canada, the U.K. Kosé Corp. MÄURER & and Brazil. Caudalíe accelerated L’Occitane Group its door openings by 6.3 percent, Allergan WIRTZ finishing the year with 17,000 POS Dabur India STOLBERG, GERMANY worldwide. Fancl 2015 BEAUTY SALES: Compagnie Financière Richemont $207.5 MILLION Able C&C €187 MILLION + 2.2% V. ’14 AmorePacific Corp. 92 AmorePacific Group Main Brands: Prestige: Baldessarini. 4711: 4711 Original ARTDECO Coty Inc. Eau de Cologne, 4711 Acqua Inter Parfums Inc. Colonia, 4711 Wunderwasser, COSMETIC Kao Corp. 4711 Nouveau Cologne. Beauty: Tabac, S. Oliver, Betty Barclay, GROUP LG Household & Healthcare Otto Kern, Tosca, Sir Irisch Moos, Lion Corp. KARLSFELD, GERMANY Nonchalance, Pussy Deluxe. Mandom Corp. Growth and expansion 2015 BEAUTY SALES: Milbon Co. Ltd. in international markets $201.2 MILLION counterbalanced a weaker €181.4 MILLION 0 5 10 15 20 performance at home, where - 0.9% V. ’14 Pay Scale There is a new big paycheck in town. Rakesh Kapoor, chief executive ofcer of RB (formerly Main Brands: Artdeco: Artdeco Brazil and Mexico. For 2016, the ruble led to another dip in sales. Reckitt Benckiser) has shot to the top of beauty (skin and body care, makeup). company is targeting growth in Asia While in international markets, ceo salary list with a package of £23,190,895, BeYu Cosmetics and More: Pacific, where it has Chinese and the company’s business stemmed translating to $35,458,878. He ousts Johnson BeYu (makeup). ICB Innovative Australian subsidiaries, as well as mainly from makeup, domestically and Johnson ceo Alex Gorsky, who now places Cosmetics Brands: Make Up the Middle East and North America. the balance was relatively equal third with an income of $23,795,866. Meanwhile, Factory, Misslyn (makeup), Anny In its core professional hair-care between makeup and makeup Leslie Wexner, chairman and ceo of L Brands, (nail color and care). Malu Wilz activity, revenues grew 21%, due sets, toiletries and skin care. moved from fifth place to second on an income Beauté: Malu Wilz (makeup, skin to Alfaparf Milano and Yellow. In Micys continued to invest in Pupa care). American Nails. skin care, Alfaparf restructured its after discontinuing the Miss Milkie of $27,168,100, up 12.8%. Due to regional portfolio to focus on core brands, and AEF brands in 2014. Key financial regulations that do not require these especially Dibi Milano, whose launches included Age Revolution, salaries to be reported, Hypermarcas, Kosé, Artdeco’s domestic revenues sales increased 7%. The Thermae Panta Slim anticellulite shorts and Lion, Mandom, Milbon, Natura, Pola Orbis, Fancl increased 1.2% last year; it SPA and TisalyaTM brands were a line of home fragrances. and Alès Groupe are missing from the list. Also remained the best-selling prestige discontinued. absent is Coty due to a change in management makeup brand in Germany. In during the fiscal year and AmorePacific Group Russia, sales increased 80% thanks to a partnership with because executive compensation was only L’Etoile perfumeries. Artdeco partially disclosed. also performed well in Greece, 95 Rakesh Kapoor A.G. Lafley Hungary, Malaysia and Kuwait. 94 Chief Executive Ofcer, Chairman, President And BeYu declined in several markets Rb/Reckitt Benckiser Chief Executive Ofcer, BOTTEGA VERDE Procter & Gamble Co. as its exclusive retail partner GUANGDONG Fiscal Year Ended: COSSATO, ITALY Fiscal Year Ended: June Douglas replaced the brand with MARUBI Dec. 31, 2015 30, 2015 its private label ofer. Iran, with Base Salary: £890,950 2015 BEAUTY SALES: ($1,362,263) Base Salary: $2,000,000 sales up 19%, became its largest BIOTECHNOLOGY CO. $188.6 MILLION Stock and Option Awards: 0 Stock and Option Awards: export market. BeYu and Make Bonus and Incentive Pay: $12,407,790 GUANGDONG, CHINA €170 MILLION Up Factory signed with Landmark £21,987,402 ($33,618,738) Bonus and Incentive Pay: + 1.7% V. ’14 Other Compensation: $3,290,000 in the UAE for distribution 2015 BEAUTY SALES: £312,543 ($477,878) Other Compensation: throughout the Middle East. Make $191.2 MILLION Main Brands: Bottega Verde TOTAL: £23,190,895 $588,831 Up Factory, exclusive to Müller ($35,458,878) TOTAL: $18,286,621 CNY 1.19 BILLION (EST.) (skin, body, bath, sun and hair Change Versus Prior Year: Change Versus Prior Year: drugstores in several European care; makeup, fragrance). Glossip + 10.8% V. ’14 (EST.) Up 81.5% Down 6.2% markets, saw sell-out sales grow (makeup, skin and sun care, 2015 Net Sales: Up 0.4% to Fiscal 2015 Net Sales: Down 14%, although sell-in grew 7% at Main Brands: Marubi, Haruki fragrance). £8.87 Billion ($13.57 Billion) 5.3% to $76.28 Billion Müller due to stock reduction. Its (skin care). sales grew 27% in Italy, doubled in Leslie Wexner Fabrizio Freda the Philippines, and were strong in Bottega Verde continued Chairman And Chief President And Chief Kazakhstan. Misslyn saw a double- Increasing e-commerce sales expanding abroad in 2015, Executive Ofcer, L Brands Executive Ofcer, The Estée Lauder Cos. digit decline in sales at home, but boosted business for Guangdong entering Singapore after Fiscal Year Ended: January Marubi Biotechnology Co. in 2015, penetrating the United Arab 31, 2016 Fiscal Year Ended: June exports grew, especially in the Base Salary: $1,985,385 30, 2015 Middle East, Russia and Ukraine, accounting for 22% of overall Emirates and South Korea Stock and Option Awards: Base Salary: $1,800,000 and it entered Saudi Arabia, Iran, business and growing 38% year- the previous year. The Crema $17,003,381 Stock and Option Awards: over-year to CNY258 million. Marubi Straordinaria face cream, Bonus and Incentive Pay: $9,375,007 Chile and Moldova. Anny declined $6,749,600 Bonus and Incentive Pay: in domestic and export sales, opened its first standalone stores, launched in November, was a Other Compensation: $4,828,650 although it remained the leading ending the year with more than 20 key introduction. According to a $1,429,734 Other Compensation: such outlets, and entered health survey by GFK Eurisko conducted TOTAL: $27,168,100 $677,490 nail polish brand at Douglas Change Versus Prior Year: TOTAL: $16,681,147 Germany. and beauty chain Watsons. Overall, from June 2014 through May Up 12.8% Change Versus Prior Year: Marubi grew its retail presence by 2015, Bottega Verde was the 2015 Net Sales: Up 6% to Up 7.2% 5.3% to 17,278 doors at yearend. most popular face and body skin $12.15 Billion Fiscal 2015 Net Sales: Down 1.7% to $10.78 Billion The Marubi brand accounted for care brand in Italy for the third Alex Gorsky 87% of total revenues; the Elastin consecutive year. Chairman and chief Anti-Aging Firming line was its executive ofcer, Johnson & Richard Lepeu biggest seller, accounting for 21% of Johnson Co-Chief Executive Ofcer, 93 Compagnie Financière total company sales. LVMH-backed Fiscal Year Ended: Richemont L Capital maintains a 10% stake in December 31, 2015 ALFAPARF Base Salary: $1,613,462 Fiscal Year Ended: March Marubi, which continues to advance Stock and Option Awards: 31, 2015 GROUP with its plans for an IPO. 97 $15,256,425 Base Salary: SFr 4,323,156 Bonus and Incentive Pay: ($4,500,838) OSIO SOTTO (BERGAMO), ITALY $4,009,536 Stock and Option Awards: MANZANITA Other Compensation: SFr 6,250,000 ($6,506,875) 2015 BEAUTY SALES $2,916,443 Bonus and Incentive Pay: TOTAL: $23,795,866 SFr 2,957,200 ($3,078,741) $200.8 MILLION CAPITAL Change Versus Prior Year: Other Compensation: SFr €181 MILLION LONDON Down 4.8% 803,906 ($836,947) 95 2015 Net Sales: Down 5.7% TOTAL: SFr 14,334,262 + 11.3% V. 2014 to $70.1 Billion ($14,923,400) 2015 BEAUTY SALES: Change Versus Prior Year: MAIN BRANDS: Alfaparf Milano, MICYS $180 MILLION (EST.) N/A Yellow, Alta Moda, Il Salone Milano Brenton L. Saunders Fiscal 2015 Net Sales: Down CASTATENOVO, ITALY + 16% V. ’14 (EST.) (hair care), TeN Science, Dibi President And Chief 2.3% to €10.41 Billion ($11.55 Main Brands: Byredo, Diptyque Executive Billion) Milano, Becos, Olos (skin and 2015 BEAUTY SALES: (fragrance). Eve Lom, Kevyn Ofcer, Allergan body care), Solarium (sun care), $188.6 MILLION Decoderm Make Up/Care (skin Aucoin, Lipstick Queen (makeup). Fiscal Year Ended: Lorenzo Delpani €170 MILLION Dec. 31, 2015 care, makeup). Malin+Goetz (skin, body and hair President And Chief 6.6% V. 2014 Base Salary: $1,000,000 Executive Ofcer, Revlon Inc. - care, fragrance). Space.NK (bath Stock and Option Awards: 0 Main Brands: Pupa (makeup, skin and body care, fragrance). Bonus and Incentive Pay: Fiscal Year Ended: $20,250,000 December 31, 2014 Alfaparf Group’s revenues grew care, toiletries, beauty kits). Other Compensation: Base Salary: $1,206,346 in both domestic and international Manzanita Capital, which $315,549 Stock and Option Awards: TOTAL: $21,565,549 $9,999,997 markets in 2015. Exports specializes in acquiring niche France, Israel and Russia were Change Versus Prior Year: Bonus and Incentive Pay: accounted for 80% of its business; beauty brands, saw strong Down 41.1% $3,450,253 Micys’ top international markets the biggest international markets growth last year. In January, 2015 Net Sales: Up 123.5% Other Compensation: in 2015, and the contraction of to $15.07 Billion $98,425 were in Latin America, especially the company acquired the the Russian market and weak

56 WWD BEAUTY INC TOTAL: $14,755,021 Paul Polman E.V. Goings Truman Hunt G. Alex Kanellis Sunil Duggal Fiscal Year 2015 Net Sales: Change Versus Prior Year: Chief Executive Ofcer, Chairman And Chief President And Chief Group Chief Executive Chief Executive Ofcer, Up 22.3% to 57.33 Billion Up 1203.9% Unilever Plc Executive Ofcer, Executive Ofcer, Nu Skin Ofcer, Dabur India Rupees ($894.35 Million) 2014 Net Sales: Up 29.9% to Tupperware Brands Corp. Enterprises PZ Cussons $1.94 Billion Fiscal Year Ended: Fiscal Year Ended: Dec. 31, 2015 Fiscal Year Ended: Fiscal Year Ended: Fiscal Year Ended: March 31, 2015 Jean Madar Base Salary: €1,392,000 December 26, 2015 December 31, 2015 May 31, 2015 Base Salary: 71,018,567 Chairman and Chief Sheri McCoy ($1,544,285) Base Salary: $1,017,604 Base Salary: $1,000,000 Base Salary: £543,840 Rupees ($1,107,890) Executive Ofcer, Inter Stock and Option Awards: 0 Stock and Option Awards: Stock and Option Awards: ($831,531) Stock and Option Awards: 0 Parfums Inc. Chief Executive Ofcer Bonus and Incentive Pay: 0 Avon Products Inc. Bonus and Incentive Pay: $4,850,090 $3,238,472 Stock and Option Awards: €7,949,000 ($8,818,621) Bonus and Incentive Pay: Bonus and Incentive Pay: £186,753 ($285,545) Other Compensation: Fiscal Year Ended: Fiscal Year Ended: Other Compensation: $1,860,635 $42,267 Bonus and Incentive Pay: 3,468,865 Rupees ($54,114) December 31, 2015 December 31, 2015 €1,062,000 ($1,178,183) Other Compensation: Other Compensation: £601,477 ($919,658) TOTAL: 74,487,432 Rupees Base Salary: $630,000 Base Salary: $1,200,000 TOTAL: €10,403,000 $219,119 $133,925 Other Compensation: ($1,162,004) Stock and Option Awards: Stock and Option Awards: ($11,541,088) TOTAL: $7,947,448 TOTAL: $4,414,663 £131,255 ($200,689) Change Versus Prior Year: $112,408 $9,777,646 Change Versus Prior Year: Change Versus Prior Year: Change Versus Prior Year: TOTAL: £1,463,325 Up 15.8% Bonus and Incentive Pay: $0 Bonus and Incentive Pay: Up +8.8% Down 7.3% Down 7.2% ($2,237,424) Fiscal Year 2015 Net Sales: Other Compensation: $0 $1,693,959 2015 Net Sales: Up 10% to 2014 Net Sales: Down 12.4% 2015 Net Sales: Down 12.5% Change Versus Prior Year: Up 10.7% to 78.06 Billion TOTAL: $742,408 Other Compensation: €53.27 Billion ($59.1 Billion) to $2.28 Billion to $2.25 Billion Up 39% Rupees ($1.21 Billion) Change Versus Prior Year: $204,011 Fiscal 2015 Net Sales: Down Down 3.6% TOTAL: $12,875,616 4.9%to £819.1 Million ($1.25 2015 Net Sales: Down 6.2% Change Versus Prior Year: Joseph C. Papa Benno Dorer E. Scott Beattie Billion) Reinold Geiger to $468.4 Million Up 26.4% Chairman And Chief Chief Executive Ofcer Chairman And Chief Chairman and Chief 2015 Net Sales: Down 19% Executive Ofcer, Perrigo Clorox Co. Executive Ofcer, Elizabeth Executive Ofcer, L’Occitane to $6.2 Billion (Restated Arden Inc. Adi Godrej Group Masahiko Uotani To exclude North America) Fiscal Year Ended: Fiscal Year Ended: Chief Executive Ofcer, Chief Executive Ofcer, June 27, 2015 June 30, 2015 Fiscal Year Ended: June Godrej Consumers Products Fiscal Year Ended: Shiseido Co. Base Salary: $1,183,750 Base Salary: $789,762 30, 2015 March 31, 2015 Ian Cook Stock and Option Awards: Stock and Option Awards: Base Salary: $900,000 Fiscal Year Ended: Base Salary: 0 Fiscal Year Ended: March Chairman, President And $7,852,270 $5,000,323 Stock and Option Awards: March 31, 2015 Stock and Option Awards: 31, 2015 Chief Executive Ofcer, Bonus and Incentive Pay: Bonus and Incentive Pay: $2,850,124 Base Salary: 63,000,000 €31,000 ($34,391) Base Salary: ¥47,000,000 Colgate-Palmolive Co. $1,410,130 $1,680,820 Bonus and Incentive Pay: rupees Bonus and Incentive Pay: ($390,100) Other Compensation: Other Compensation: $371,250 Stock and Option Awards: 0 €125,000 ($138,675) Stock and Option Awards: Fiscal Year Ended: Dec. 31, $261,441 $387,282 Other Compensation: $93,917 Bonus and Incentive Pay: Other Compensation: ¥9,000,000 ($74,700) 2015 TOTAL: $10,707,590 TOTAL: $7,858,187 TOTAL: $4,215,291 60,800,000 €772,000 ($856,457) Bonus and Incentive Pay: Base Salary: $1,309,000 Change Versus Prior Year: Change Versus Prior Year: Change Versus Prior Year: Other Compensation: TOTAL: €928,000 ¥6,000,000 ($49,800) Stock and Option Awards: Down 43.5% N/A Up 9.9% 8,000,000 rupees ($1,029,523) Other Compensation: ¥0 $8,089,217 Fiscal Year 2015 Net Sales: Fiscal 2015 Net Sales: Up Fiscal 2015 Net Sales: Down TOTAL: 131,800,000 rupees Change Versus Prior Year: TOTAL: ¥63,000,000 Bonus and Incentive Pay: Up 13.4% to $4.6 Billion 2.6% $5.66 Billion 16.6% to $971.1 Billion ($2,056,080) Down 1.9% ($522,900) $1,292,509 Change Versus Prior Year: Fiscal Year 2015 Net Sales: Change Versus Prior Year: Other Compensation: Up 39.3% Up 11.7% to €1.18 Billion ($1.31 N/A $1,911,886 Jean-Paul Agon Stefano Pessina Bernard Arnault Fiscal 2015 Net Sales: Up Billion) Fiscal 2015 Net Sales: Up TOTAL: $12,602,612 Chairman And Chief Executive Vice Chairman and Chairman And Chief 8.7% to 82.42 Billion Rupees 2.1% to ¥777.68 Billion ($6.45 Change Versus Prior Year: Executive Ofcer,L’Oréal Chief Executive Ofcer, Executive Ofcer, LVMH ($824.2 Million) Billion) Down 13.3% Walgreens Boots Alliance Moët Hennessy Louis Takashi Okura Michitaka Sawada 2015 Net Sales: Down 7.2% Fiscal Year Ended: Vuitton President And Chief President And Chief Yeong-Pil Seo to $16.03 Billion December 31, 2015 Fiscal Year Ended: Executive Ofcer, Noevir Executive Ofcer, Kao Corp. Chairman, President And Base Salary: €2,200,000 August 31, 2015 Fiscal Year Ended: Holdings ($2,440,680) Base Salary: $35,850 December 31, 2015 Chief Executive Ofcer, Fiscal Year Ended: Able C&C Bernard Fornas Stock and Option Awards: Stock and Option Awards: Base Salary: €1,145,326 Fiscal Year Ended: December 31, 2015 €5,167,680 ($5,733,024) $7,000,006 ($1,270,625) September 30, 2015 Co-Chief Executive Ofcer Base Salary: ¥64,000,000 Fiscal Year Ended: Dec. 31, Compagnie Financière Bonus and Incentive Pay: Bonus and Incentive Pay: $0 Stock and Option Awards: Base Salary: ¥234,000,000 ($531,200) €1,782,000 ($1,976,951) Other Compensation: N/A ($1,942,200) 2015 Richemont Stock and Option Awards: Base Salary: $500,000 Other Compensation: €0 $97,299 Bonus and Incentive Pay: Stock and Option Awards: ¥23,000,000 ($190,900) Fiscal Year Ended: TOTAL: €9,149,680 TOTAL: $7,133,155 €2,200,000 ($2,440,680) N/A Stock and Option Awards: Bonus and Incentive Pay: $0 March 31, 2015 ($10,150,655) Change Versus Prior Year: Other Compensation: Bonus and Incentive Pay: ¥36,000,000 ($298,800) Base Salary: SFr 4,419,176 Change Versus Prior Year: N/A €116,413 ($129,149) N/A Bonus and Incentive Pay: $0 Other Compensation: 0 Other Compensation: $0 ($4,600,804) Up 12.4% Fiscal Year 2015 Net Sales: TOTAL: €3,461,739 Other Compensation: N/A TOTAL: ¥123,000,000 Stock and Option Awards: 2015 Net Sales: Up 12.1% to Up 35.4% to $103.4 Billion ($3,840,453) TOTAL: ¥234,000,000 TOTAL: $500,000 ($1,020,900) Change Versus Prior Year: SFr 3,000,000 ($3,123,300) €25.26 Billion ($28.02 Billion) Change Versus Prior Year: ($1,942,200) Change Versus Prior Year: Bonus and Incentive Pay: Up 2.2% Change Versus Prior Year: N/A N/A 2015 Net Sales: Down 6.95% SFr 3,677,200($3,828,333) Kaspar Rorsted Fiscal 2015 Net Sales: Up Down 57.6% Fiscal Year 2015 Net Sales: Other Compensation: SFr David P. Hatfield 16.4% to €35.7 Billion ($39.61 Fiscal Year Net Sales: Up to KRW 407.88 Billion ($367.1 Chairman, Henkel Up 5% to ¥1.47 Trillion ($12.2 Million) 618,802 ($644,235) President And Chief Billion) 2.4% to ¥49,390,000,000 Billion) TOTAL: SFr 11,715,178 Executive Ofcer, Edgewell Fiscal Year Ended: ($409,000,000) ($12,196,672) December 31, 2015 Personal Care N. H. Bhansali Change Versus Prior Year: Base Salary: €1,200,000 William Fung Kwok Xie Wenjian N/A Fiscal Year Ended: ($1,331,280) Group Chairman, Li & Fung Suk Cha Chief Executive Ofcer, Fiscal 2015 Net Sales: Down September 30, 2015 Stock and Option Awards: Vice Chairman And Chief Chairman And General Finance, Strategy And 2.3% to €10.41 Billion ($11.55 Base Salary: $685,217 €1,302,456 ($1,444,945) Fiscal Year Ended: Executive Ofcer, LG Manager, Shanghai Jahwa Business development and Billion) Stock and Option Awards: Bonus and Incentive Pay: December 31, 2014 Household And Healthcare chief financial ofcer Emami $7,948,921 €3,818,846 ($4,236,628) Base Salary: $616,000 Fiscal Year Ended: Ltd. Bonus and Incentive Pay: Other Compensation: Stock and Option Awards: Fiscal Year Ended: December 31, 2015 Base Salary: CNY6,240,000 Christopher Bailey $551,708 €79,206 ($87,871) $0 December 31, 2015 Fiscal Year Ended: Base Salary: KRW ($1,002,768) March 31, 2015 Chief Creative And Chief Other Compensation: TOTAL: €6,400,508 Bonus and Incentive Pay: 2,151,000,000 ($1,935,900) Stock and Option Awards: Base Salary: 15,274,900 Executive Ofcer, $171,724 ($7,100,724) $2,512,000 Stock and Option Awards: 0 N/A rupees ($238,274) Burberry Group Plc TOTAL: $9,357,570 Change Versus Prior Year: Other Compensation: Change Versus Prior Year: Down 6.9% $41,000 Bonus and Incentive Pay: 0 Bonus and Incentive Pay: Stock and Option Awards: 0 Fiscal Year Ended: N/A 2015 Net Sales: Up 10.1% to TOTAL: $3,169,000 Other Compensation: 0 N/A Bonus and Incentive Pay: 0 March 31, 2015 Fiscal 2015 Net Sales: Down €18.09 Billion ($20.07 Billion) Change Versus Prior Year: TOTAL: KRW 2,151,000,000 Other Compensation: N/A Other Compensation: 0 Base Salary: £1,008,000 7.3% to $2.42 Billion Up 25% ($1,935,900) TOTAL: CNY 6,240,000 TOTAL: 15,274,900 rupees ($1541,232) 2014 Net Sales: Up 1.4% to Change Versus Prior Year: ($1,002,768) ($238,274) Stock and Option Awards: Marjin Dekkers $19.29 Billion Up 84.5% Change Versus Prior Year: Change Versus Prior Year: Net Sales: Up 13.9% to KRW Up 56% Up 42.4% £4,426,000 ($6,767,354) Stefan F. Heidenreich Chairman and Chief 5.3 Trillion ($4.77 Billion) 2015 Net Sales: Up 9.6% Fiscal Year 2015 Net Sales: Bonus and Incentive Pay: Chairman, Beiersdorf Executive Ofcer, Bayer AG £1,782,000 ($2,724,678) Axel Dumas to CNY 5.85 Billion ($940.1 Up 21.8% to 22.17 Billion Other Compensation: Fiscal Year Ended: Fiscal Year Ended: Million) rupees ($345.85 Million) Chief Executive Ofcer, Magnus Brännström Chief £727,000 ($1,111,583) Dec. 31, 2015 December 31, 2015 Hermès International TOTAL: £7,943,000 Base Salary: €1,250,000 Base Salary: €1,374,000 Executive Ofcer, ($12,144,847) ($1,386,750) ($1,524,316) Fiscal Year Ended: Oriflame Holdings Saugata Gupta Change Versus Prior Year: Stock and Option Awards: Stock and Option Awards: December 31, 2014 Fiscal Year Ended: Managing Director And Chief N/A €4,727,000($5,244,134) €2,027,000 ($2,248,754) Base Salary: €1,050,000 December 31, 2015 Executive Ofcer, Marico Ltd. Fiscal Year 2015 Net Sales: Bonus and Incentive Pay: Bonus and Incentive Pay: ($1,164,870) Base Salary: Fiscal Year Ended: Up 8.3% to £2.52 Billion €1,750,000 ($1,941,450) €1,477,000 ($1,638,584) Stock and Option Awards: €803,000 ($890,848) March 31, 2015 ($3.85 Billion) Other Compensation: Other Compensation: €0 Stock and Option Awards: 0 Base Salary: €321,000 ($356,117) €1,007,000 ($1,117,166) Bonus and Incentive Pay: €0 Bonus and Incentive Pay: 52,214,091 Rupees ($814,540) TOTAL: €8,048,000 TOTAL: €5,885,000 Other Compensation: €614,000 ($681,172) Stock and Option Awards: 0 ($8,928,451) ($6,528,819) €1,050,000 ($1,164,870) Other Compensation: Bonus and Incentive Pay: Change Versus Prior Year: Change Versus Prior Year: TOTAL: €2,100,000 €307,000 ($340,586) 8,465,201 Rupees ($132,057) Up 6% Up 5% ($2,329,740) TOTAL: €1,724,000 Other Compensation: 2015 Net Sales: Up 6.4% to 2015 Net Sales: Up 12.1% to Change Versus Prior Year: ($1,912,606) 1,416,672 Rupees ($22,100) €6.69 Billion ($7.42 Billion) €46.32 Billion ($51.39 Billion) Up 143.5% Change Versus Prior Year: TOTAL: 62,095,964 Rupees Fiscal Year 2014 Net Sales: Up 51.5% ($968,697) Up 9.7% to €4.12 Billion ($4.57 2015 Net Sales: Down 4.3%

Change Versus Prior Year:

Billion) to €1.21 Billion ($1.34 Billion) N/A

FOR A LOOK AT MARKET CAPITALIZATION OF LEADING PUBLIC COMPANIES, GO TO WWD.COM BY THE NUMBERS The 10 Beauty Companies With the Most & Least Shareholder outstanding stake in Kevyn Main Brands: Air Stream, Prolixir, Aucoin that it did not already Garderica, Renovage, Matrigenic, Equity at Yearend 2015 own. Byredo opened its first Verbena, Sengarà (skin and body U.S. standalone in August, and care), Faberlic Expert (skin and Shareholder Equity, the diference between a company’s total expanded distribution at Neiman body care, hair care), Beauty Café Marcus and in Hong Kong via (body care, fragrance), Secret assets and total liabilities, is one measure of a firm’s overall Lane Crawford. The brand is Story, Sky Line (makeup), Krasa looking for opportunities to enter (hair color). financial health. Here is a list of the 10 firms with the highest China. Diptyque opened a store in Beverly Hills in March and in and lowest amounts of shareholder equity. Bal Harbour, Fla., in December. Russia’s largest homegrown Space.NK opened new stores in direct seller Faberlic’s sales Shareholder Equity Company Revenue Cambridge and York in March shot up 46% in local currency Company and November respectively. in 2015, credited to customers at Year end 2015 2015 Manzanita Capital’s total beauty from Russia, Belarus and sales for 2015, including retail Ukraine switching from pricier Johnson & Johnson $71.15 Billion $70.1 Billion sales of third-party brands, grew international brands to more 17% to $283.8 million. afordable, local brands. Hair care and color posted the strongest Procter & Gamble Co. $62.3 Billion $76.28 Billion* sales growth, up 70%; personal hygiene and bath products Walgreens Boots $31.15 Billion $112.92 Billion** rose 68%; makeup, 52%, and Alliance HIGHEST fragrance, 46%. In 2015, the 98 company had more than 800,000 LVMH Moët Hennessy $28.62 Billion $39.56 Billion consultants, up 100,000 from Louis Vuitton €25.8 Billion €35.66 Billion LABORATOIRES 2014, as people sought out additional income opportunities Bayer AG $ 2 8 . 2 3 B i l l i o n $51.39 Billion EXPANSCIENCE due to the difcult economic €25.45 Billion €46.32 Billion conditions. Key markets for COURBEVOIE, FRANCE Faberlic, which is distributed L’Oréal $26.26 Billion $28.02 Billion 2015 BEAUTY SALES: in 24 countries, were Russia, €23.67 Billion €25.26 Billion $177.5 MILLION (EST.) Kazakhstan, Ukraine, Belarus and Uzbekistan. €160 MILLION (EST.) Unilever $17.13 Billion $59.13 Billion + 4.8% V. ’14 (EST.) €15.44 Billion €53.3 Billion Main Brands: Mustela, Noviderm (skin care). Compagnie Financière $15.98 Billion*** $11.55 Billion*** Richemonte €14.4 Billion €10.1 Billion 100 Laboratoires Expanscience Perrigo $10.73 Billion $5.35 Billion continued to strengthen its core DR. BABOR brand, Mustela. It relaunched R B $10.55 Billion $13.57 Billion the Mustela Maternity line, and AACHEN, GERMANY £6.9 Billion £8.87 Billion bestsellers in the Mustela Bébé 2015 BEAUTY SALES: range also performed well in $166.1 MILLION *Fiscal Year Ended June 30, 2015 **Fiscal Year Ended March 31, 2015 ***Fiscal Year Ended Aug 31, 2015. 2015. Expanscience opened its 14th international subsidiary, €149.7 MILLION in Russia, and began full-scale + 10.3% V. ’14 Clorox Co. $198 Million $5.66 Billion *** operations for its Canadian Main Brands: Babor, Doctor subsidiary, created in 2014. The Babor (skin care), Babor Spa beauty category accounted (body care), Babor Men (men’s Able C&C $166.89 Million $367.09 Million for 58.7% of Laboratoires grooming), Babor Face Design KRW185.43 Billion KRW407.88 Billion Expanscience’s 2015 total sales Collection (makeup). of €272.3 million, which grew Tupper ware Brands $162.7 Million $2.28 Billion****** 1% year-on-year. Revenues Corp. generated outside France Sales for Dr. Babor in 2015 were totalled 51% of total sales. driven by launches under the Elizabeth Arden $109.9 Million $971.1 Million*** Mustela was the leading brand Doctor Babor brand, especially in European pharmacies for skin the introduction of biphase care for babies and stretchmark ampoule products. Dr. Babor Alès Groupe $91.24 Million $270.8 Million products, according to boosted its presence online to €82.24 Million**** €244.1 Million IMS Health. drive trafc to its e-commerce sites, launching an Instagram account and enhancing its Allergan $76.6 Million $15.07 Billion social media presence. The firm introduced a new visual identity in March. Its sales remained L Brands ($259 Million) $12.15 Billion** 99 evenly split between Germany and

abroad, where key markets were FABERLIC the U.S., Benelux, Russia, Spain, Colgate-Palmolive Co. ($299 Million) $16.03 Billion Scandinavia and Canada. MOSCOW

2015 BEAUTY SALES: Revlon ($587.5 Million) $1.91 Billion $170.6 MILLION

LOWEST 10.34 BILLION RUBLES + 46.3% V. ’14 Avon Products ($1.06 Billion) $6.2 Billion*

*Restated to exclude North America **FY Ended Jan. 30, 2016 ***FY Ended June 30, 2015 ****As of June 30, 2015 *****FY Ended Dec. 26, 2015.

58 WWD BEAUTY INC

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