This week, I reviewed financial earnings from off-price leaders Ross and TJX to unpack beauty’s sales spike in discount retailers. Additionally, Target gets a new CEO, L’Oréal Group invests $80 million in its Mexico manufacturing plants, and top Australian sunscreen brand Ultra Violette orders a sweeping recall after a watchdog study found its Lean Screen lacked advertised SPF.
Beauty product sales spike at Ross as consumers hunt for value amid economic pressures
Beauty sales in the off-price category have held strong amid economic pressures. Last week, TJX, parent company to TJ Maxx and Marshall’s, reported 4% comparable sales growth and plans to open an additional 1,800 stores. While the company doesn’t share category sales breakdowns, CEO Ernie Herrman told investors that “customer transactions increased at every division,” and the company raised its annual guidance after its fiscal 2026 Q1 and Q2 exceeded expectations.
TJX has been expanding its beauty portfolio for years with offerings that often mirror that in Target, Sephora and Ulta Beauty, thanks to featured brands like Laneige, Clinique, Kate Somerville, Laura Mercier and Murad, among many others.
Now, Ross Dress for Less is also seeing growth in its beauty section. On Thursday, Ross CEO James Conroy told investors that the chain’s top-performing category for its last quarter was beauty. The off-price chain, which has more than 1,800 locations in the U.S., reported a 5% sales increase to reach $5.5 billion during its Q2 2025 earnings call on Thursday.
“We feel very good about the momentum coming out of the quarter,” said Conroy. During the call, he told investors that “cosmetics was the best merchandise area” for the quarter, with the top sales in beauty found in the Southeast and Midwest. “Kudos to that merchandising team that has gotten that business up,” said Conroy. He added that beauty sales were “better than the chain average” and called beauty a category “that’s gotten a lot of attention over the last few years.”
Similar to TJX, top beauty brands sell into Ross to boost cash liquidity, offload older products or liquidate products after packaging changes or reformulations. They also look to the retailer as a sampling marketing endeavor or to reach consumers trading down for cheaper products, among other reasons. But unlike TJX, Ross does not offer online sales.
Ross shoppers have shared their hauls on TikTok, Reddit and YouTube. Videos and posts reviewed by Glossy have included brands like Urban Decay, Josie Maran, Ole Henriksen, First Aid Beauty, Buxom, Hourglass, COSRX, Briogeo, Too Faced, Nars, Clinique and many more.
Ross launched in 1982 and currently operates 1,847 stores in 44 states, as well as 358 dd’s Discount stores in 22 states. The company opened 28 new stores in the first half of the year and plans to add 52 more this year, with a focus on locations in New York City and its first locations in Puerto Rico.
In February, Conroy took over the CEO role for Ross Stores from Barbara Rentler who led the company for nine years. His CV includes Boot Barn and Claire’s. His arrival could mean a shift in focus toward beauty.
According to Placer.Ai, a location analytics firm that charts foot traffic, Ross foot traffic was up 5.8% during its Q2 and 7.1% in July. It beat competitors TJX and Burlington in repeat customer visits. According to the firm, the share of visitors frequenting Ross at least twice a month in Q2 2025 grew to 28.9%, up from 27.0% in Q1 2025 and 28.4% in Q2 2024.
“A divide has emerged between value-oriented and discretionary retail,” said R.J. Hottovy, head of analytical research at Placer.ai. “Q2 earnings reports highlighted this split … as consumers hunt for bargains.”
Executive moves:
- Michael Fiddelke will take over the CEO role of Target effective February 1, 2026. Fiddelke is Target’s current COO and will replace Brian Cornell as CEO after an 11 year tenure. The change was fueled by two and a half years of flat or falling sales for the retailer and ongoing protests around the retailer’s DEI policy rollbacks.
- Natasha Vaquer is the new co-head of brand partnerships of UTA Talent Agency’s UTA Creators division. Vaquer previously served as SVP of talent partnerships and influencer strategy at Refinery29.
News to know:
- L’Oréal is investing $80 million into the expansion of its manufacturing facilities in Mexico. It’s part of the industry’s wider investment in near-shoring manufacturing into Mexico as brands work toward diversifying their supply chains away from Asia. The conglomerate plans to use the $80 million to expand its facilities in San Luis Potosí and Mexico City in 2026.
- Australian sunscreen brand Ultra Violette is pulling its Lean Screen sunscreen from shelves after a June investigation by Choice, an Australian consumer advocacy publication, found that it provided less sun protection than advertised. The brand first denied the claims that its formula did not offer the SPF level printed on the package but acknowledged its mistake on Friday after completing its own tests. In a message to consumers, the brand said it would no longer be working with the contract manufacturer that made the formula or the testing company Ultra Violette employed. It will also be revamping its own internal testing protocols.
- Louis Vuitton’s first cosmetics line, called La Beauté, is set to launch on Friday in Louis Vuitton stores and online. The line has already made headlines thanks to its sky-high price points: $250 for eyeshadow and $160 for lipstick, available in 55 shades, and lip balm, available in 10. Makeup artist Pat McGrath serves as the line’s creative director.
- Selena Gomez’s Rare Beauty has partnered with Mexican seasoning brand Tajin for a cheek and lip color set inspired by the iconic product’s red hue. The duo is available for $30 DTC and through Sephora.
- In an era where body- and skin-care brands are launching hair care, Tracee Ellis Ross is going the opposite direction. The star’s hair-care brand, Pattern Beauty, entered the body-care category with Thursday’s launch of body wash, oil, cream and more. The line will sell DTC and through Ulta Beauty and Sephora in the coming weeks. Pattern Beauty was incubated by Beach House Group.
Stat of the week:
The U.S. prestige beauty market grew by 2% to reach $16 billion during the first half of the year, while sales at mass merchants increased 4% to reach $34.6 billion, according to a new report from market research company Circana. Standouts include prestige fragrance and hair-care sales, which each increased by 6%.
In the headlines:
With the rise of the chief AI officer, it’s time to examine ‘czar’ culture. Many Target stores will stop fulfilling online orders. Beauty brand Frilliance By Fiona Frills climbs 38,000% on TikTok and plots app launch. Rise in foodie perfumes may be linked to weight-loss drugs. Is petcare the next luxury opportunity?
Listen in:
What makes a pop-up shop or experiential event successful today? In today’s episode of the Glossy Beauty Podcast, host Lexy Lebsack is joined by Patrick Ta Beauty svp of marketing Jacquelin Barrett, Matte Projects president Neda Whitney, and Michelle Lee, chief brand officer at Front Row Group and fractional CMO of Landing International, to find out.
Need a Glossy recap?
TJX to open 1,800 new stores as off-price thrives amid tariff pressures. Inside Estée Lauder’s $14 billion reset: AI, brand trouble and a travel retail retreat. The ‘skinification of hair care’ accelerates with launches that challenge bond-repair’s stunning growth. Smashbox aims to reclaim relevance by refocusing on its OG products.
