New tariffs imposed by President Donald Trump have sent many beauty and fashion brands scrambling to adjust for duties as high as 145% on goods imported from China. But Oddity Tech, the owner of makeup brand Il Makiage and wellness brand SpoiledChild, believes tariffs won’t stand in the way of its aggressive growth plan.
“The truth is, [tariffs are] just not a big exposure for us,” said Oddity CFO Lindsay Drucker. According to Drucker, Oddity’s high gross margins, at around 70%, and production based primarily in Europe mean it can withstand a fluctuating tariff situation. Trump imposed a 20% tariff on goods imported from EU countries; Drucker declined to comment on which European countries Oddity’s products are manufactured in.
On Tuesday, Oddity published its earnings report for the first quarter of 2025 where it announced a net revenue of $268 million, representing a 27% increase year-over-year. Even with tariffs remaining uncertain, the company also raised its 2025 outlook to hit net revenue of $790 million to $798 million, equating to year-over-year growth of 22-23%.
“There are actually a lot of attractive areas of this market, but incumbents are just not positioned in the right way. And we are,” she said.
More established beauty conglomerates have struggled in recent quarters. In February, The Estée Lauder Companies reported a 6% decline in net revenue for the second quarter of fiscal year 2025 and announced a revamped plan to offset declining sales. The conglomerate, which owns the likes of Le Labo and Clinique, will announce its third quarter earnings on Thursday.
Drucker attributed Oddity’s continued growth to its strength in online, direct-to-consumer channels and low cost of customer acquisition. The company, which went public in 2023, announced $647 million in net revenue for the full year 2024, representing 27% year-over-year growth.
While Il Makiage remains its largest brand, with the makeup line surpassing $500 million in revenue in 2024, Oddity has used celebrity endorsements to boost the profile of its SpoiledChild brand in 2025, similar to a strategy it used for popularizing Il Makiage in recent years. SpoiledChild tapped figures such as Alyson Hannigan and LeAnn Rimes for Facebook and TikTok endorsements in January, and in March, it launched a second collaboration with former Moschino creative director Jeremy Scott. Oddity has plans to soft launch its third brand, a telehealth skin-care platform, in the third quarter of 2025.
But above all, Drucker said Oddity wants to compete with the beauty behemoths.
“Our goal is to become one of the largest beauty businesses in the world. Our business model was made for moments like these,” said Drucker. “We have a very tight feedback loop with our customers, as opposed to having to wait [to receive feedback] through the retailers, through the wholesalers, through all the inventory noise.”
