This is an episode of the Glossy Beauty Podcast, which features candid conversations about how today’s trends are shaping the future of the beauty and wellness industries. More from the series →
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The beauty industry had an eventful summer marked by changing retailer strategies, stark revenue tumbles and a flurry of pricey acquisitions.
In this special episode of The Glossy Beauty Podcast, reporters Lexy Lebsack, Emily Jensen and Sara Spruch-Feiner walk through the stories that defined the season.
This includes strategy shifts within retailers like Sephora, Ulta Beauty and Target, plus a look at disappointing revenue at conglomerates Shiseido and Estée Lauder Companies. The team also discusses the biggest acquisitions of the season — including Rhode, Dr. Squatch, Space NK and Touchland — and the tariff-related topics we’re watching as fall approaches.
To start, Glossy’s beauty team digs into the industry’s biggest summer investments, led by E.l.f. Beauty’s May purchase of Hailey Bieber’s Rhode for $1 billion. The team also walks through CPG company Church & Dwight’s $700 million purchase of trendy hand sanitizer brand Touchland in May and Unilever’s June purchase of digitally-native men’s care brand Dr. Squatch for $1.5 billion.
Beauty’s top specialty retailers also had big summers. Sephora is leaning deeper into a tried-and-true brand launch playbook: the celebrity artist. In the past few weeks, the retailer has rolled out new lines from celebrity makeup artists Hung Vanngo and Mary Phillips, plus hairstylist Chris McMillian.
Meanwhile, Ulta Beauty had a whirlwind summer as new CEO Kecia Steelman executed her “Ulta Unleashed” comeback plan. Steelman, who was appointed CEO in January after more than a decade with the company, announced her plan in March as a response to the company’s 1.9% year-over-year holiday sales tumble. Glossy’s team unpacks all the changes, including the acquisition of U.K. retailer Space NK, international expansion into Mexico and the Middle East, and the end of Ulta’s shop-in-shop with Target.
Finally, Glossy’s team walks through can’t-miss beauty conglomerate news: LVMH’s splashy Louis Vuitton Beauté launch and Shiseido’s sales tumble caused by Drunk Elephant’s poor performance, plus turbulence at Waldencast and Estée Lauder Companies. Finally, team Glossy ends with a few autumn tariff predictions.
On Ulta Beauty’s Target Breakup
Lebsack: “Ulta Beauty’s big ‘Ulta Unleashed’ comeback plan started earlier this year when the company announced its Q4 2024 earnings, which were from mid-November to February, and saw a net sales decrease of 1.9%. This really set off everything that we’re seeing unfold this summer, [including] a new C suite, new CEO Kecia Steelman and her comeback plan. But, of course, the biggest news story around this is that Ulta and Target have broken up. … They launched in 2021 with around 100 [Ulta Beauty shop-in-shop] stores in Target, [but] it didn’t work out nearly as well as everyone was hoping. … According to experts, it is most likely Ulta that initiated the breakup.”
On Sephora’s shift towards celebrity artist brands
Spruch-Feiner: “We’ve seen a triple drop of some new [celebrity artist-founded beauty brands] at Sephora, and there are plenty of rumors about more coming. In the past couple weeks alone, we’ve seen lines drop from Chris McMillan, the celebrity hairstylist responsible for [Jennifer Aniston’s iconic haircut] “the Rachel”; Mary Phillips, who is famously Hailey Bieber’s makeup artist, with a makeup line called m.ph; and Hung Vanngo, who is Selena Gomez’s makeup artist, with a self-titled makeup brand.”
On The biggest acquisitions of the summer
Jensen: “The big investment in the beauty world that will probably be the biggest acquisition of 2025 is, of course, E.l.f. Beauty purchase of Rhode for $1 billion, which happened back in May. It doesn’t come as a big surprise, considering how outwardly successful Rhode appeared to be. It was launched back in 2022, and it seems to have really risen to the top of the pack. … [Men’s brand] Dr. Squatch [sold for $1.5 billion to Unilever], and they had some big campaigns, as well, like with Sydney Sweeney. … But it’s interesting to think about what consumers are actually gravitating toward [and whether or not] it’s enough just to have a huge name.”
