Economic outlook sways but personal care sales hold stability

Despite global economic turmoil, businesses’ beauty sectors are delivering strong financial results. LVMH has released its 2024 fiscal results as chemicals company Ashland reports a decrease in overall sales in its first quarter of 2025 but a strong performance in personal care.

LVMH’s Sephora delivered a “remarkable performance,” with double-digit revenue and profit growth. The cosmetics retailer operates within LVMH’s Selective Retailing business group, which posted organic revenue growth of 6% in 2024. 

Meanwhile, the luxury goods company accredited some of its financial success to its Perfumes & Cosmetics business group, achieving organic revenue growth of 4% in 2024. It attributed this growth to its flagship lines, innovations, and selective distribution policy.

Luxury fragrance and cosmetics 

LVMH’s men’s fragrance Sauvage by Dior consolidated its position as the world’s leading fragrance, according to LVMH. The European conglomerate draws on making singer Rihanna the face of women’s perfume J’adore and the new Miss Dior Parfum edition as reasons for the perfume sector’s success.

Parfums Givenchy grew, driven by fragrances and Prisme Libre powder. Other achievements induced Maison Francis Kurkdjian opening a showcase store in Paris, France, and Fenty Beauty beginning its development in China and launching a range of hair care products.

LVMH claims part of its financial success in 2024 was due to its Miss Dior perfume.The makeup category was also noted for its performance — particularly the Forever foundation line. Guerlain saw positive fragrance momentum, driven by its L’Art & La Matière premium fragrance collection and its new Florabloom scent to the Aqua Allegoria line.

LVMH’s Selective Retailing business group posted organic revenue growth of 6% in 2024. The multinational holding company grew its retail network, highlighting the UK and US following a Kohl’s collaboration.

LVMH ended 2024 with a revenue of €84.7 billion (US$88.13 billion), beating its previous expectations of €84.28 billion (US$87.69 billion). Its profit from recurring operations was €19.6 billion (US$20.39 billion). 

“Despite a geopolitical and macroeconomic environment that remains uncertain, the group remains confident and will pursue its brand development-focused strategy, underpinned by continued innovation and investment as well as an extremely exacting quest for desirability and quality in its products and their highly selective distribution,” says LVMH.

Market slowdown, personal care boost

Meanwhile, Ashland’s financial results for the first quarter of 2025 were US$405 million, down 14% from the prior year quarter. However, it saw an increase in personal care sector sales. 

The additives and specialty ingredients company achieved a “strong performance” in personal care, with sales increasing 4% year-over-year to US$134 million. Its portfolio optimization, which primarily included exiting the oral-care business, reduced personal care sales by approximately US$2 million or 2%during the first quarter.

Excluding the optimization, sales increased 6% year-over-year, driven by higher sales volumes across skin care, hair care, and biofunctionals end-markets.

Ashland says the growth in beauty was bolstered by strength in Asia, which showed an increase in demand and “more than offset” its weakness in Europe.Ashland worked to optimize its portfolio by exiting oral-care.

Guillermo Novo, chair and chief executive officer of Ashland, says: “Organic sales volumes declined by 1%, primarily due to lower demand in Europe and inventory control actions by our pharmaceutical customers.”

“This decline was mostly offset by improved sales volumes in Personal Care, Specialty Additives, and Intermediates. Pricing impacts moderated in the quarter, reflecting our team’s disciplined approach to a stable raw material environment.”

Ashland’s Personal Care sector had an adjusted operating income of US$12 million compared to US$2 million in the prior-year quarter. Adjusted EBITDA was US$30 million, up 36% from US$22 million in the prior-year quarter.

Despite the slowdown in the European market, the company is monitoring a potential recovery and trade policy shifts but has not observed any market dynamics that would necessitate a revision of its outlook. 

Overall, Ashland continues to expect full fiscal year sales in the range of US$1.90 billion to US$2.05 billion and adjusted EBITDA from US$430 million to US$470 million.